Gilded AgeGilded Age

A term coined by Mark TwainA term coined by Mark Twain Refers to substantial growth in population in Refers to substantial growth in population in

the United States and extravagant displays of the United States and extravagant displays of wealth and excess of America's upper-class wealth and excess of America's upper-class during the post-Civil and post-Reconstruction during the post-Civil and post-Reconstruction era, in the late 19era, in the late 19thth Century (1865-1901). Century (1865-1901).

An era of seemingly endless prosperity with An era of seemingly endless prosperity with excessive examples of corruption and povertyexcessive examples of corruption and poverty

““The man in the moon held his nose when he The man in the moon held his nose when he passed over the U.S.”passed over the U.S.”

Factors of growth #1: Wealth of Factors of growth #1: Wealth of Natural ResourcesNatural Resources

Timber from great lakesTimber from great lakes California GoldCalifornia Gold OH, WY, CO, PA = CoalOH, WY, CO, PA = Coal OK, TX, CA, AK = OilOK, TX, CA, AK = Oil NV, CA, UK = SilverNV, CA, UK = Silver MI, MT, UT, AZ = CopperMI, MT, UT, AZ = Copper All funded by capital investments (JP All funded by capital investments (JP

Morgan, Andrew Carnegie, etc) back in Morgan, Andrew Carnegie, etc) back in East Coast cities East Coast cities

Factors of Growth #2: Agricultural Factors of Growth #2: Agricultural BaseBase

Homestead Act 1862 – Encouraged Homestead Act 1862 – Encouraged development of Westdevelopment of West

Pacific Railway Act 1862: Gave 10 Pacific Railway Act 1862: Gave 10 acres of land to RR for each mile of acres of land to RR for each mile of track laidtrack laid

Corn production increased 264%, Corn production increased 264%, Wheat up 252%, Cotton up 300%Wheat up 252%, Cotton up 300%

New fertilizersNew fertilizers New machines: McCormick Reaper, New machines: McCormick Reaper,

barbed wirebarbed wire

Factors of Growth #3: Capable Factors of Growth #3: Capable WorkforceWorkforce

Irish and Italian Immigrants come in Irish and Italian Immigrants come in record numbersrecord numbers

By 1910 50% of America was By 1910 50% of America was immigrantimmigrant

Willing to work for cheap laborWilling to work for cheap labor

Philosophy of the Philosophy of the IndustrialistsIndustrialists

Adam SmithAdam Smith

Individual self-interest Individual self-interest works to the benefit of all works to the benefit of all of societyof society

Increases efficiency, Increases efficiency, cheaper goods over the cheaper goods over the long runlong run

Government intervention Government intervention should be avoidedshould be avoided Absolute minimum of duties, Absolute minimum of duties,

tariffs, quotas tariffs, quotas Free markets are the Free markets are the

solutionsolution

Adam Smith 1723-1790

Herbert SpencerHerbert Spencer English philosopherEnglish philosopher Survival of the fittestSurvival of the fittest Bright and Able Bright and Able

contribute the most, contribute the most, should be rewardedshould be rewarded

Poor, weak, handicapped Poor, weak, handicapped demand more than they demand more than they produce, should be produce, should be allowed to die a natural allowed to die a natural deathdeath

Charities, handouts are Charities, handouts are well-intentioned but well-intentioned but really destructive to really destructive to societysociety

Origins of Social Origins of Social DarwinismDarwinism

Herbert Spencer 1820-1903

John D. RockefellerJohn D. Rockefeller Growth of a large Growth of a large

business is merely business is merely survival of the fittestsurvival of the fittest

““The American beauty The American beauty rose can be produced rose can be produced in the splendor and in the splendor and fragrance which bring fragrance which bring cheer…only by cheer…only by sacrificing the early sacrificing the early buds…”buds…”

Nature and God’s laws Nature and God’s laws mean that monopolies mean that monopolies are OKare OK John D. Rockefeller 1839-1937

Andrew CarnegieAndrew Carnegie

Rich have social Rich have social obligation to set an obligation to set an example of living example of living modestly, use profits modestly, use profits to establish trust to establish trust funds that benefit the funds that benefit the community community

Provide opportunity Provide opportunity for the poor to better for the poor to better themselvesthemselves

Known as the “Gospel Known as the “Gospel of Wealth”of Wealth”

Andrew Carnegie 1835-1919

Corruption under Ulysses S. GrantCorruption under Ulysses S. Grant

Ulysses S. Grant took a check from Ulysses S. Grant took a check from NYC for $105k for “saving the Union” NYC for $105k for “saving the Union” when he became presidentwhen he became president

Boss Tweed Ring: Tammany Hall = Boss Tweed Ring: Tammany Hall = political machine in control of NYCpolitical machine in control of NYC

Kickbacks, bribery the only way to do Kickbacks, bribery the only way to do businessbusiness

““An honest senator was one who An honest senator was one who when bought, stayed bought”when bought, stayed bought”

ScandalScandal

Credit Mobilier Scandal: Union Pacific Credit Mobilier Scandal: Union Pacific RR earns dividends of 340% - gives RR earns dividends of 340% - gives stock to senatestock to senate

Whiskey Ring: Whiskey distillers bribe Whiskey Ring: Whiskey distillers bribe IRS to “go away” – Grants own sec in IRS to “go away” – Grants own sec in on iton it

Belknap Scandal: Sec War took bribes Belknap Scandal: Sec War took bribes to “cheat Indian reservations”to “cheat Indian reservations”

RR: Stalled in the rain until people met RR: Stalled in the rain until people met their demandstheir demands

Labor UnionsLabor Unions

Knights of LaborKnights of Labor Eventually included Eventually included

women, blacks, women, blacks, professionals, professionals, laborers, skilled laborers, skilled workers, socialists, workers, socialists, anarchists, farmersanarchists, farmers

Wanted to get rid of Wanted to get rid of capitalism by creating capitalism by creating worker-owned worker-owned businessesbusinesses

Would use violenceWould use violence

American Federation American Federation of Laborof Labor

Only skilled workers in Only skilled workers in craft unionscraft unions

Wanted higher wages, Wanted higher wages, shorter hours, shorter hours, improved conditionsimproved conditions

Public suspicious, but Public suspicious, but found them less found them less threatening than the threatening than the anti-capitalist K of Lanti-capitalist K of L

Key FiguresKey FiguresKnights of Labor:Knights of Labor:Terence V. PowderlyTerence V. Powderly K of L becomes more like a K of L becomes more like a

union, less like a fraternal union, less like a fraternal organizationorganization

Growth of K of L to close to Growth of K of L to close to 1 million members by 18861 million members by 1886

Disliked strikesDisliked strikes Influenced by Influenced by producerismproducerism, ,

not not socialismsocialism Supported Chinese Supported Chinese

Exclusion ActExclusion Act Knights die out by 1900Knights die out by 1900

Socialists, craft unionists, Socialists, craft unionists, Haymarket Riot, Haymarket Riot, unsuccessful strikes cause unsuccessful strikes cause downfalldownfall

AF of L:AF of L:Samuel GompersSamuel Gompers Gompers is a socialistGompers is a socialist Founds AF of L in 1886, Founds AF of L in 1886,

leads it until his death in leads it until his death in 19241924

Discriminated against Discriminated against blacks and womenblacks and women

Also supported Chinese Also supported Chinese Exclusion ActExclusion Act

Supported political action, Supported political action, generally w/Democratsgenerally w/Democrats

Wanted to partner Wanted to partner w/business—saw unions as w/business—saw unions as the labor componentthe labor component

Supported collective Supported collective bargainingbargaining