U.S. Grant 1869-1877

Rutherford B. Hayes 1877-1881

James Garfield 1881

Chester A. Arthur 1881-

1885

Grover Cleveland 1885-1889 and

1893-1897Benjamin

Harrison 1889-1893

William McKinley 1897-

1901

Gilded Age -Period when corruption existed in society but was overshadowed by the wealth of the period (“gilded” is when something is golden/beautiful on the surface but is really cheap/worthless underneath

Abuses in business and government caused problems for immigrants, laborers, and farmers

Term comes from a book written about the time period by Mark Twain and Charles Dudley Warner in 1873 The Gilded Age

Wealth of Natural resources (oil, coal, iron ore, water)

Without these: Slower growth for AmericaGovernment support for BusinessGrowing population that provided cheap

labor and new markets for products

FIRST to successfully use a steam engine to drill OIL near Pennsylvania

Who invented the “steam engine?”

FIRST “oil well” in America

Problem – Iron (which is turned into steel) has other elements (Carbon = WEAK)

In order to make a profit with efficient iron….get the carbon out!!!

Developed by Henry BessemerPOINT: remove the imperfect elements out of

the ironSuccessful – 90% of the nation’s steel was

produced this way!First used by Andrew Carnegie

Railroads (linked isolated cities)Who did most of the work?

Barbed Wire All innovative construction

(Brooklyn Bridge -1883)(Skyscrapers in Chicago & NYC…

etc.)Innovations promote change…leads to

inventions – boosts the economy!

Thomas Edison Perfected the light bulb in

1880, and motion picture Organized power plants Established first research

lab Alexander Graham Bell

Telephone (1876) Henry Ford

Assembly Line George Eastman

Camera (1885) Samuel Morse

Telegraph (1837) Wright Brothers

Airplane (1903) Christopher Sholes

Typewriter (1867)Guglielmo Marconi

Radio

Samuel Morse

Alexander Graham Bell

19th Century Camera

19th Century Typewriter

Wright Brothers on 1903 Flight

Marconi

The Federal Government made HUGE land grants for the development of railroads

Promontory Point, Utah (Union and Central Pacific / Iowa to California) = FIRST Transcontinental Railroad

Civil War (1865)– America had 30,000 miles of track but by 1890 – 180,000 miles of track… 25 years!

Who did most of the work on the railroads?________________________________________

*Endured Native American attacks!

Results: growth of industries, hazardous jobs for railroad workers, an increase in migration to the

West

Railroad Mogul (railcars)Provided a “COMPANY

TOWN” homes, schools, hospitals for his workersProblem: You constantly were in debt / Very controlling! Pullman Strike (later)

- raised the rent, but DID NOT give out raises! = leads to violent strike in 1894!

One business that “CONTROLS” the market over a particular product or service

Characteristics:(1) doesn’t worry about providing good service

to the public (2) can charge whatever they want / (3) makes low-quality goods because of NO

competition(4) Restrict production and raise prices

Examples of Industrialists / Monopolists / Tycoons or “Captains of Industry”

1.Cornelius Vanderbilt2.Andrew Carnegie 3.John D. Rockefeller4.J.P. Morgan

Captain of IndustryHated PhilanthropyShipping & Railroad

TycoonNickname “The

Commodore”

WHY HE WAS SUCCESSFUL -1.Rags to Riches* (younger = poor, older = rich,

The American Dream…), supported charities which led to…

2.GOSPEL OF WEALTH - the Monopolist or industrialist millionaires “GIVE BACK” to charities.

3.Philanthropy” – the act of giving back to the community (Carnegie – responsibility)

4.Carnegie “STEEL” Company” (1899)5.Social Darwinism6.Vertical and Horizontal Integration

(business strategies)7.Bessemer Process

Practiced by Andrew Carnegie

Vertical Integration: process in which Carnegie “bought out his suppliers” (iron mines, railroad systems) ….. WHY????

Horizontal Integration: process in which Carnegie “bought out OTHER companies” smaller companies merge into Carnegie Steel Company

“Survival of the Fittest” - Trying to apply biological reasoning to society• Some individuals of a species “flourish” and pass their traits

to their next generation, while others do not flourish. • 1859 English naturalist Charles Darwin: On the Origins of

Species • “Natural Selection / Law”• Can explain the success of industrialists / tycoons / moguls

Why does Laissez Faire SUPPORT Social Darwinism (vice versa)?• “Laissez faire” government

• “allow to do” – NO government regulation of business / economy / “Pure / fair Competition” “unrestricted capitalism” –

Answer: to allow the “fittest to survive” NATURALLY without government intervention.

The American DreamThe American Dream the ideal that every US citizen

should have an equal opportunity to achieve success and prosperity through hard work, determination, and initiative.

Rags to RichesGospel of WealthBessemer ProcessVertical IntegrationHorizontal IntegrationSocial Darwinism

Creates the “Standard Oil Company”

“ROBBER BARON” (RUTHLESS)Sold his oil at a very LOW price

to make people buy the product from him, while other companies had HIGH prices / once you control the market….hike the prices back up!

Richest man in historyPhilanthropist

Stockholders from numerous companies (ex. Bob’s company) would hand over their shares / stocks to the a board of trustees (TRUST).

In return, the stockholders make a profit off the success of the business (Standard Oil monopoly)

Dictate prices and charge whatever they want!

(PRICE FIXING)MAIN POINT of a TRUST: To eliminate competition

- Purpose: an attempt by the federal government to “REGULATE” businesses & to promote

FAIR COMPETITIONFirst legislation to attempt to limit trusts by

claiming unfair trading optionsResult of Sherman Anti-Trust Act INEFFECTIVE!!!!!!!!!! (until Teddy Roosevelt

and Woodrow Wilson years = CLAYTON ANTI-TRUST ACT) Later: Federal Trade Commission (still used today)

(Language too vague to enforce / pressure from fed. gov’t = trusts will get around it and MERGED)

- against railroad abuses- More power to the

“STATES” and uphold Granger law

- “interstate commerce”- Interstate Commerce

Commission – Enforce federal control of Interstate commerce

- Prohibited monopolies / trusts

Reason:South is still “rebuilding” from Civil War (economic stagnation)Only thing that offered hope – tobacco, textiles, furniture, etc. (Cotton is no longer King! = tobacco)*Result of consolidation of monopolies -

Labor Unions / Union Movements are emerging & collective bargaining

Union – a group of laborers with a common cause: expose the harsh conditions of jobs

2 major types: 1. Craft (SKILLED)2. Industrial / Trade

SKILLED / UNSKILLED: “United we stand, divided we fall”

12 hour days, 6 days a weekSteel mills often demanded

7 days a weekNo vacations, sick leave,

unemployment compensation, or workers compensation for injuries on the job

ALL family members had to work to surviveChildren - .27 every 14

hoursMen - $498 / yearWomen - $267 / year

1882 – 675 (avg.) weekly deaths in America

Unions form to fight for TWO things1. Better wages / more money2. Better working conditions

“Negotiation between laborers and management”

National Labor Union (NLU) 1866 – refused African Americans as membersSkilled and unskilled (Trade unionism)Leader: William SylvisLobbied Congress, not the EmployersMAIN LEGACY: 8 hours a day (Originally

pushed by Populist…later adopted by Democrats)

Colored National Labor Union (CNLU) – accepted African Americans

Beliefs:EQUALITY = Equal pay for equal workACCEPTED EVERYONE…(women and

African Americans) / “skilled AND unskilled”Leader: Terrence PowderlyDID NOT USE STRIKES –

refusal to work, as a LAST resort (favored non-violence)

Practiced Arbitration: resolving a dispute OUTSIDE of the court system

“Injury to one is the concern of all”

Craft UnionismCraft Unionism: includes skilled workers: includes skilled workersAmerican Federation of Labor (AFL)

Leader - SAMUEL GOMPERSbelieved in “collective bargaining” used STRIKES as a MAJOR / FIRST tactic /resort

(supported violence)* Complete opposite of Knights of Labor

Industrial Unionism / Trade Unionism: Industrial Unionism / Trade Unionism: skilled AND unskilled American Railway Union (ARU)

Leader - EUGENE V. DEBS (SOCIALIST) “The Strike is the weapon of the oppressed” Eugene

V. Debs

Socialism – an economic system in which the government controls business and property / less extreme version of communism

Individuals do not work for themselves, but live in corporation of one another

Purpose: Overthrow CapitalismPro: total equality regardless of physical

differencesCon: hard workers get no support

“EQUAL DISTRIBUTION OF WEALTH”

Example of Socialist UnionMostly Unskilled workers Leader: Eugene V. Debs / Bill Haywood Nickname: WobbliesUsed STRIKES….all the time! (USED

VIOLENCE)

Federal Government response to Strikes / Unions: unhappy and acted with force (threat to the capitalist government – messes w/$)

Federal troops are sent in (injunction)

Great Railroad Strike of 1877 – B & O Railroad lead a strike (covered 50,000 miles)

President Rutherford B Hayes claimed they threatened *interstate commerce* - sent federal troops to end the strike!

Injunction: when federal government “jumps in” and tries to fix everything

Example: Great Railroad Strike of 1877 Pullman Strike (federal troops were sent in)

Strike in Chicago….police show up, workers threw a bomb into police lines!

Several police officers diedMAJOR EFFECT:THE PUBLIC BEGAN TO TURN AGAINST THE LABOR MOVEMENT (due to violence)ENDS THE LABOR MOVEMENT

Carnegie Steel Company (Homestead Plant in PA) – cut wages – a strike occurs!

Henry Frick, Homestead Plant manager hired, SCABS, or strikebreakers, that continued to work, despite the strike to keep the company going

Pullman Company laid off 3,000 workers George Pullman hired employees and gave them

housing…after lay offs, didn’t lower the rent on the house!

****George Pullman wanted to control the lives of his workers (no loitering on front porch!)

George Pullman hired SCABS, strikebreakers…strikes turned violent

Major effect: federal troops were sent in*** Railroads “BLACKLISTED” the strikers*Blacklist – a list that included people that COULD NOT

work on the railroads, due to their connection to strikes

Fighting for:Better working conditionsEqual pay for equal workEnd of child labor

****MAIN LEADER: MARY HARRIS JONES (MOTHER)

To expose the cruelties of child labor – Mary Harris Jones led a march of 80 mill children to home of President Teddy Roosevelt….this crusade influenced the passage of Child Labor Laws

March 25, 1911 (New York City)Oil-drenched machines caught on fire!

(conditions)Company locked all of the doors *(Crime /

force)146 women died (from fire or jumping) MAJOR EFFECT/ Public Reaction: a task

force was set up to study the terrible working conditions of many industries in New York

* spurred the growth of improved factory conditions and safety standards

http

Yellow Dog Contracts – swearing / oath they will NOT join a Union

Blacklist – if you are part of or leader of a union against the productivity of a business, you are placed on this list / difficult for you to get a job

Lockout: owner tells the employees not to bother showing up until they agree to a pay cut

Scabs: Strikebreakers (hired to continue economy of business while strikers are not working)

Interstate Commerce: a company claims strikers are affecting interstate commerce and the federal government comes running!