“ The Gilded Age ”

1. “The Gilded Age” Mr. Calella American Studies I (Honors)

2. Big Ideas & Essential question • BIG IDEAS: • Robber Baron, Monopoly, Gilded, Social Darwinism • Essential Question: • What is the primary function of a government: to protect the rights of the citizens or to protect the interests of big business?

3. After the Civil War • Watch the following short video • Write down 3 questions that are mentioned in the video to which you can form a connection with • Jot down your connection (personal, something you know a little about, something that relates to current events, something you find interesting, etc.) • Watch video “After the Civil War”

4. The Gilded Age: Triumph of Self-Interest • North’s industries won the Civil War; businessmen and manufacturers were paid high respect • This paved way for Robber Barons and ascending to power • Also paved way for manufacturing and industry to begin developing in the South • Country becomes more materialistic and people compete for wealth • Push for laissez-faire economy and Social Darwinism • People were out for themselves; they were tired of sacrifice (reform, Civil War, enfranchisement) • Mark Twain called this era of American culture and politics the “Gilded Age” and wrote a novel with the same name • Dazzling on its surface , but base metal below

5. Activity • Brainstorm factors, resources, political conditions, etc. necessary for industry to grow in a country.

6. Industrial Growth in U.S. • Major industrial growth post Civil War • 1874 to 1883, GNP grows by 44% • Factors behind explosive growth • Natural resources discovered and exploited • Expanding population (European immigration) • Protective tariffs • Social Darwinism • Science & technology advancements

7. RRs become largest economic forces in U.S. and their executives very powerful 1890, RRs $1 Billion and U.S. gov’t $403 mil. RRs spurred economy-buying materials, building, hiring, selling land grants Post Civil War, RR construction; focus on INTEGRATION (“tree trunk”) RRs indispensable to economic growth? Safer, efficient-air brakes, sleeping cars Jay Gould was Robber Baron of industry Railroads: First Big Business

9. Railroads: Competition & Monopoly • Deflation: What is it? Why farmers hurt by it? • Competition caused profit margins to shrink • RRs charged more where no competition existed (so farmers hurt, why?) • 1870s, RRs entered bankruptcy b/c lowering rates continuously and debts piled up • 1880s, bigger RRs buying smaller ones • 1890s Depression, bankers like J.P. Morgan buying RRs and agreed to set industry rates • Hurt consumers? Help? Government action?

10. Iron, Oil, and Electricity • Iron industry after mass-produce steel (Bessemer Process) • Bridge/building girders, track, machine tools • PA and OH become huge producers • Oil-used to produce kerosene (lamp fuel) • Telephone-Bell in 1876; 1900, 800K • Electricity-1879, Edison invented light bulb • Typewriter-1867, Christopher Sholes • SHOW VIDEO ON LIGHTBULB

11. The Steel Industry • SHOW CARNEGIE VIDEO • Andrew Carnegie: kingpin of steel “rags to riches” story; ACTIVITY • 1901, Carnegie (to focus on philanthropic work) bought out by Robber Baron banker J.P. Morgan to form U.S. Steel, 1st billion dollar company • Business Practices • Better products and better, highly competitive people • Exploit blue collar laborers • Vertical Integration allowed him to achieve Horizontal Integration (i.e., monopoly)

12. J.P. Morgan & The Brooklyn Bride • Watch video • Write 3 facts learned from video and 1 higher level question • 5 minutes to research other steel suspension bridges in U.S. • Location? • When was it built? • Who designed it?

13. Andrew Carnegie & J.P. Morgan

14. Rockefeller and the Trust • Oil-very competitive • Output always seemed to outpace demand • J.D. Rockefeller founded Standard Oil of Cleveland in 1870 • Rockefeller consolidated oil industry so by 1879 he had 90% (fair & foul methods) • After est. monopoly needed new business organization because prohibition of local laws • TRUST-Samuel C.T. Dodd; Rockefeller’s interests and everyone else’s turned secretly over to 9 trustees (“supervise”) • Competition ended, profits up, and Rockefeller made millions

15. Standard Oil Trust • What animal does Standard Oil represent and why? • What is it latching on to? Why? • How does it represent a “trust”? • Robber Baron Activity

16. Rockefeller and the Holding Company • 1888, after public outcry, federal government outlawed trust as violation of free trade • Standard Oil responded by changing into a HOLDING COMPANY (bought competing companies under one central administration) • Not loved like Carnegie even though made gifts • Muckraker journalist Ida B. Tarbell exposed Rockefeller’s unsavory business practices in a series of articles that appeared in McClure’s Magazine from 1902 to 1905

17. Competition & Monopoly: Retailing and Utilities • Electricity and phones formed monopolies- avoid duplication of equipment & better, more efficient service • Do monopolies always harmful to consumers? • Bell & Edison go through patent litigation • Should patents be granted? Do you agree? Life saving drugs? • Edison merged with competitor to form GE • Should government have to monitor or approve of mergers within an industry?

18. American Ambivalence to Big Business • Americans disliked “big” government and its regulation of business • However, NO objection to banking laws, tariffs, RR land grants, infrastructure improve. • Why were these items okayed by Americans? • Americans started fearing trusts and monopolies b/c might increase prices • Worry of AUTOCRACY & gap between rich and poor (wealth highly concentrated) • However, generally did NOT unreasonably increase prices • What would industry look like without efficiency and price control of monopolies?

19. Social Darwinism & Gospel of Wealth • Social Darwinism: Darwin’s principles (On the Origin of Species,1859) applied to human society (only the strong survive and the weak die out) • Does this sound like a theory promulgated by the rich and powerful? Why? • Carnegie believer in Social Darwinism but softened it a bit with his Gospel of Wealth (1889) • He preached philanthropy, but most rich people behaved like J.P. Morgan and other Robber Barons (contribute to charity but amass a huge personal fortune) • Social Darwinism also used to justify racism and superiority of Anglo-Americans during this immigration heavy era

20. Laissez-Faire & Supreme Court • Laissez-Faire: French for “let it alone” • Emphasis on free competition and lack of government interference in economy or marketplace • Has roots in Darwin • What is the connection? Do you agree with this philosophy? • Supreme Court acts very conservative in 1880s and 1890s • Declare laws regulating RRs and outlawing trusts/monopolies to be unconstitutional • Santa Clara County v. Southern Pacific RR (1886

21. Post-War Politics • Demographics: Danger of generalizations? • Sectionalism • Wealth • Race • Congress wins power struggle after Lincoln • Senate: “rich man’s club” • House: inefficient and disorderly • The Republicans • Still “waving the bloody flag” (northern carpetbagger flogged and his shirt becomes symbol) • Grand Army of the Republic (GOP)

22. Post-War Politics (continued) • Tariff • What are they? Why Southern Dems against it? • Currency Reform • Greenbacks • Deflation, What is it? Why is it bad? • Grant’s veto • Civil Service Reform • Bureaucracy grow with nation • Spoils System or Patronage, What is it? Pros & Cons? • New York Customs House • “Life blood of politics”, What was meant by it?

23. Gender, Race, and Politics • Suffrage being equated with manhood-women left out (Victorian and Darwinist stances on sex) • Why Democrats opposed to black voting? • Started equating black voting with black sexual power and miscegenation (racial mixing) • Fear tactic (protect white women by prohibiting black vote); same argument used to justify lynching • AWSA and NWSA • Become NAWSA in 1890 • Suffrage in certain states • 1920 with the 19th Amendment

24. Post-Reconstruction Republicans • Hayes “wins” in 1876-Reconstruction ends • Not much for Southern blacks or civil service reform • Republicans spilt into 3 factions • Stalwarts: Grant supporters; very corrupt; Conkling • Half Breeds: not as corrupt; Blaine • Mugwumps: wanted to end spoils system with civil service reform • 1880, P Garfield (no faction) and VP Arthur (Stalwart) win for Republicans

25. Garfield’s Assassination and Civil Service Reform • Federal bureaucracy grows to nearly 150,000 • On July 2, 1881, Garfield was shot • Charles Guiteau (insane, disappointed office seeker, said he was a Stalwart and wanted Arthur to be president) • Dies in September and Arthur becomes president • Public outcry to end factionalism and spoils system • 1883 Pendleton Civil Service Act: established a Civil Service Commission; made a merit system to obtain most federal jobs (i.e., you must pass a civil service test)

26. Regulation of the Railroads • 1867, the Grange (farmers’ cultural organization becomes political arm for regulating RRs) • Granger laws to regulate RR rates • Munn v. Illinois (1877) &Wabash v. Illinois (1886) • 1887, Interstate Commerce Act created • RR fees must be “reasonable and just” • Outlawed RR monopoly practices and charging more for short hauls than long hauls • How did this Act challenge laissez-faire policy? • Created ICC, but it was understaffed and overworked

27. Sherman Antitrust Act • (1890): any business combination (like a trust) that restricted interstate commerce was illegal • Where did Congress get its power to pass this law? • Problem: vague law-Why problem? • Quell public clamor to stop monopolies • U.S. v. E.C. Knight Co. (1895 • What did this case do to the Sherman Antitrust Act? • What message did this case send to industry?