Gilded Age and Progressive Era

1890-1920

The Gilded Age was a term created by Mark

Twain, to describe the post-Reconstruction

Era.

Gilded means “covered with a thin layer of

gold,” and “Gilded Age” suggest that a thin but

glittering layer of prosperity covered the

poverty and corruption of much of society.

This was a golden age for America’s

industrialists.

The wealth hid the problems faced by

immigrants, laborers and farmers.

Wealth also covered up the widespread

abuse of power in business and

government.

Free Market Capitalism rules the day

Laissez-faire Policies

In the late 1800s business operated largely

without government regulations.

This hands-off approach is known by the

French phrase laissez-faire.

● Government should play as little as of a

role as possible.

● Government should promote free trade

and allow a free market

● Many Americans supported this idea

Republican

•Gold based $

•High Tariffs

•$ for Union soldiers

•Aid to Railroads

•Limits on Immigrants

Democrat

•Silver based $

•Lower Tariffs

•High farm prices

•Less aid to Railroads

Differences in political parties

Rise of Big Business

Historians have used the terms “robber baron”

and “captain of industry” to describe powerful

industrialists who established large businesses

in the late 1800s.

Robber baron-Implies business leaders built

their fortunes by stealing from the public.

● They drove competition out of business

and paid their workers meager wages.

Captain of Industry-Suggests business leaders

served the nation in a positive way.

● They created jobs, raised the standard of

living and established museums, libraries

and universities.

New Market Structures created

by Big Business

The lure of gaining enormous profits from new booming

industries attracted investors and entrepreneurs.

Only a few companies could compete in certain industries due

to high start up costs.

Oligopoly-A market structure dominated by a few firms.

Examples, cars, breakfast cereals and household appliances.

Monopoly- Complete control over a market. Business buys out

competition and drove them out of business

Sometimes, industrialists prospered by taking steps to limit

competition with other firms.

One way to do this was to form a Cartel-A loose association of

business that makes the same product.

Carnegie Steel: Steel soon replaced iron in many industries.

During the early 1870’s, near Pittsburgh Andrew Carnegie

founded the first steel plants using the Bessemer process.

● Why was the Bessemer process created?

● Who created the process? When?

● How did the process work?

● Why was the Bessemer process considered an

“engineer's dream?

https://www.youtube.com/watch?v=dypdoLm4Rn8

Vertical consolidation: Gaining control of many different

business that make up all phases of a product's development.

Oil was another industry that became huge.

In 1863 D. Rockefeller built an oil . refinery near Cleveland

Ohio.

The refinery expanded rapidly and with several associates,

Standard Oil Company of Ohio was created.

Due to the size of the company he was able to negotiate

deals with railroad companies to get refunds for

transporting his oil.

● Prices were set lower, and more oil was sold.

● Able to undersell his competitors for charging less.

Horizontal consolidation: Bringing together of many firms

in the same business. Independent business are bought by

one business.

Government Response to Big

Business

Companies band together to combine their operations. This

called a Trust.

In, time 40 companies joined the trust. Since companies did

not officially merge, they did not violate any laws.

Americans began to demand government action to break

up trusts because they limited industrial competition.

The government was hesitant to pass legislation that

limited Big Business because of the wealth that it generated.

Sherman Antitrust Act: 1890, outlawed any combination of

companies that restrained interstate trade.

Immigration in the 1800’s

In the late 1800s’ people in many parts of the world were

moving from farms to cities.

Immigrants from around the world were fleeing crop

failures, shortages of land and jobs, rising taxes and famine.

Some were also escaping religious or political freedom.

Immigrants chased hopes and dreams in the United States.

● Between 1865-1920 30 million people immigrated to

the US.

● Believed you could get rich, receive education, and

even take part in the Homestead Act. (Securing of

free government land).

Arrival in the United States In 1892 the federal government opened a huge reception

center for passengers on Ellis Island in New York Harbor.

Physical Exams required, could be deported

People with trachoma were automatically sent back.

After physicals and showing of documents. Immigrants were

free to enter the country.

Immigrant CitiesImmigrants often sought to live in communities

established by previous settlers from their homelands.

Not only port cities, such as New York and Boston.

A diverse group of immigrants from large settlements in

Cleveland, Detroit, Chicago and Milwaukee.

Some immigrants moved into the mining towns of the

West.

Immigrant labor paid less than other workers. Women

earned less than men.

Some urban neighborhoods became Ghettos, areas

dominated by one ethnic group.

These communities reflected the culture of the

Homeland.

Chinese Exclusion Act of 1882

Most immigrants who entered the US through

the West Coast ports came from Asia.

Chinese and Japanese immigrants formed the

largest group.

Acceptance for both groups was difficult.

Trade Unions complained that Chinese labor

cheapened wages.

Some Americans claim that Chinese immigrants

were physically and mentally inferior.

Chinese Exclusion Act passed in 1882, outlawed

Chinese immigrants coming to the US.

Progressive Movement

•1890-1920

•A variety of reforms were enacted at all

levels

•Many Progressives believed that political

action and reform were required for progress

in society.

Not a single unified movement

.

The Progressives:

Their Goals and

Beliefs

Social Reform

Economic Reform

Political Reform

Moral Reform

Social Reform Examples Women’s rights

–Suffrage (voting)

–Owning Property

–Divorce

–Clothing

–Birth Control

Social ReformProtection of the Environment

–Antiquities Act of 1906

»Allows President to designate National

Monuments

»Protect and Preserve Wildlife Areas

Social Reform Examples

Tenement Life

● Over Crowding of the Cities

● Poor Living Conditions

● Unsanitary Conditions

Social Reform Examples

Unsafe working conditions

and Child Labor

● Fewer Hours

● Higher Wages

● Safer Factories

● Unions

Safer Food

● Government Inspection of

Food

● Proper Labeling

● Cleanliness

Upton SinclairMUCKRAKERS

Journalists that exposed turn of the

century problems such as illegal

business activities, putrid food,

quack medicines, squalid living

conditions, dangerous working

conditions, etc.

•The uncovering of these awful

truths led progressives to demand

changes.

Pure Food and Drug Act 1906

Created Food and Drug Administration,

responsibility of testing all foods and

drugs destined for human consumption

The requirement for prescriptions from

licensed physicians before a patient could

purchase certain drugs

The requirement of label warnings on

habit-forming drugs.

Cocaine was a common

ingredient, even in children's

medicine.

Meat Inspection Act of 1906

All animals were required to pass an

inspection by the FDA prior to slaughter

All carcasses were subject to a

post-mortem inspection

Cleanliness standards were established for

slaughterhouses and processing plants.

Moral Reform

•End Prostitution

•End Gambling

•End Drunkenness

•Education for Children

•Americanization and

Restriction of Immigrants

Many felt the Morals of our society

were at the root of many turn of the

century problems.

- Moral Reformers sought to promote

Moral Improvements:

Economic Reform

Economic Reformers sought to

curb the power and influence

of wealthy interests.

● Monopolies

● Trusts

● Gap between Rich and Poor

Political Reform•Governments should become more efficient

and less corrupt so that they can competently

handle an expanded role.

Political Reformers demanded Political

Honesty and Accountability

● Only Politicians can introduce bills

● Only Legislatures can pass laws

● Only Courts can remove corrupt officials

● Political Machines

● Bribery

Major Progressive Legislation

•16

th

Amendment – Congress can

levy income taxes (1913)

•17

th

Amendment – Direct

Election of Senators (1913)

•18

th

Amendment – Prohibition of

Alcohol (1919)

•19

th

Amendment – Women’s

Suffrage (1920)