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Political Changes of the Gilded Age
• Changes due to INDUSTRIALIZATION– Business corrupts politics
Social DarwinismSocial Darwinism British
economist. Advocate of
laissez-faire. Adapted
Darwin’s ideas from the “Origin of Species” to humans.
Notion of “Survival of the Fittest.”
British economist.
Advocate of laissez-faire.
Adapted Darwin’s ideas from the “Origin of Species” to humans.
Notion of “Survival of the Fittest.”
Herbert SpencerHerbert Spencer
New Business CultureNew Business Culture1. Laissez Faire the ideology of the
Industrial Age.1. Laissez Faire the ideology of the
Industrial Age.
* Individual as a moral and economic ideal.
* Individuals should compete freely in the marketplace.
* The market was not man-made or invented.
* No room for government in the market!
* Individual as a moral and economic ideal.
* Individuals should compete freely in the marketplace.
* The market was not man-made or invented.
* No room for government in the market!
The “Bosses” of the Senate
The “Bosses” of the Senate
Regulating the Trusts
Regulating the Trusts
1887 Interstate Commerce Act * Creates Interstate
Commerce Commission * Attempts to regulate
the Railroads
1890 Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole
1887 Interstate Commerce Act * Creates Interstate
Commerce Commission * Attempts to regulate
the Railroads
1890 Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole
Causes of Rapid IndustrializationCauses of Rapid IndustrializationTechnological innovations.
* Bessemer and open hearth process
* Refrigerated cars
* Edison “Wizard of Menlo Park” light bulb, phonograph, motion pictures.
Technological innovations.
* Bessemer and open hearth process
* Refrigerated cars
* Edison “Wizard of Menlo Park” light bulb, phonograph, motion pictures.
Causes of Rapid IndustrializationCauses of Rapid Industrialization1. The Railroad fueled the growing
US economy: * First BIG business in the US. * The key to opening the West. * Moving raw materials and consumer
products was much easier * Increased demand for all products
*INCREASED DEMAND = INCREASED PRODUCTION
1. The Railroad fueled the growing US economy: * First BIG business in the US. * The key to opening the West. * Moving raw materials and consumer
products was much easier * Increased demand for all products
*INCREASED DEMAND = INCREASED PRODUCTION
Thomas Alva EdisonThomas Alva Edison
“Wizard of Menlo Park” “Wizard of Menlo Park”
ElectricityElectricity
George Westinghou
se
George Westinghou
se
• Reliable Energy• Powered factories• Causes industrial
Expansion through faster production
• Creates lots of new factory jobs
The Light Bulb - 1880 The Light Bulb - 1880 • Greatest American Inventor
Thomas Edison
“Wizard of Menlo Park”
Alexander Graham BellAlexander Graham BellTelephone(
1876)Telephone(
1876)
Communication helps to speed the growth of business
1866, CARNEGIE INVESTED IN THE
“BESSEMER PROCESS”.
JULY 1892 WITH $25,000,000 CREATED CARNEGIE STEEL CORPORATION
PRODUCED 1/4 OF THE WORLD’S STEEL.
Geography
The abundant natural resources of America fuel the growth of big business
1. Unskilled & semi-skilled labor in abundance.
2. Abundant capital.3. New, talented group of businessmen
[entrepreneurs] and advisors.√ Market growing as US population
increased.√ Government willing to help at all levels
to stimulate economic growth.√ Abundant natural resources.
1. Unskilled & semi-skilled labor in abundance.
2. Abundant capital.3. New, talented group of businessmen
[entrepreneurs] and advisors.√ Market growing as US population
increased.√ Government willing to help at all levels
to stimulate economic growth.√ Abundant natural resources.
Free Enterprise SystemFree Enterprise System
John Jacob Astor – Fur Trading, Real Estate, and
Opium…
Andrew Carnegie - Steel
William VanderbiltWilliam Vanderbilt
$ The public be damned!
$ What do I care about the law? H’aint I got the power?
$ The public be damned!
$ What do I care about the law? H’aint I got the power?
Cornelius [“Commodore”]
Vanderbilt
Cornelius [“Commodore”]
Vanderbilt
Can’t I do what I want with my money?
Can’t I do what I want with my money?
Cornelius Vanderbilt –
“The Biltmore” – Largest House
in the U.S.
Wealth Concentration Held by
Top 1% of Households
Wealth Concentration Held by
Top 1% of Households
New Type of Business Entities
New Type of Business Entities
* Horizontal Consolidation John D. Rockefeller * Horizontal Consolidation John D. Rockefeller * Vertical Consolidation: * Vertical Consolidation:
Andrew Carnegie U. S. Steel Andrew Carnegie U. S. Steel
New Type of Business Entities
New Type of Business Entities
• Trust (monopolies) Combining multiple companies to create larger companies
• Trusts allow profits to skyrocket!
• Trust (monopolies) Combining multiple companies to create larger companies
• Trusts allow profits to skyrocket!
THE RICHEST MAN EVER
• Because of increased profits, companies had money to invest in research, which leads to MORE technological advancements and greater efficiency
• “Time Study Analysis
The Reorganization of Work
The Reorganization of Work
The Assembly LineThe Assembly Line
The Phonograph (1877)
The Phonograph (1877)
The Ediphone or Dictaphone
The Ediphone or Dictaphone
The Motion Picture Camera
The Motion Picture Camera
The Telegraph - 1844
The “Robber Barons” of the Past
The “Robber Barons” of the Past
B. Social DarwinismB. Social Darwinism British
economist. Advocate of
laissez-faire. Adapted
Darwin’s ideas from the “Origin of Species” to humans.
Notion of “Survival of the Fittest.”
British economist.
Advocate of laissez-faire.
Adapted Darwin’s ideas from the “Origin of Species” to humans.
Notion of “Survival of the Fittest.”
Herbert SpencerHerbert Spencer
2. Social Darwinism in America
2. Social Darwinism in America
William Graham Sumner
Folkways (1906)
William Graham Sumner
Folkways (1906)
$ Individuals must have absolute freedom to struggle, succeed or fail.
$ Therefore, state intervention to reward society and the economy is futile!
$ Individuals must have absolute freedom to struggle, succeed or fail.
$ Therefore, state intervention to reward society and the economy is futile!
ANDREW CARNEGIE
IMMIGRANT FROM GLASGOW, SCOTLAND
WORKED IN PITTSBURGH, BOBBIN BOY FOR $1.20 A WEEK.
SAVED MONEY; CHARMED INVESTORS TO ENTER THE RAILROAD BUSINESS.
1861 STARTED 1ST BUSINESS IN IRON.
“On Wealth”“On Wealth”
Andrew CarnegieAndrew Carnegie
$ “Gospel of Wealth” (1901).
$ Inequality is inevitable and good.
$ Wealthy should act as “trustees” for their “poorer brethren.”
$ Gave away his vast Fortune$ Education/Arts
$ “Gospel of Wealth” (1901).
$ Inequality is inevitable and good.
$ Wealthy should act as “trustees” for their “poorer brethren.”
$ Gave away his vast Fortune$ Education/Arts
The Gospel of Wealth:
Religion in the Era of Industrialization
The Gospel of Wealth:
Religion in the Era of Industrialization
Russell H. Conwell
Russell H. Conwell
$ Wealth no longer looked upon as bad.
$ Viewed as a sign of God’s approval.
$ Christian duty to accumulate wealth.
$ Should not help the poor.
$ Wealth no longer looked upon as bad.
$ Viewed as a sign of God’s approval.
$ Christian duty to accumulate wealth.
$ Should not help the poor.
E. JOHN D. ROCKEFELLER
HARD WORKING
GREAT MIND FOR #’S AND
MATH
IRON NERVES, DECISIVE,
PRECISION, CAUTION,
GREAT STRATEGIST AND
FORECASTER
STARTED OWN BUSINESS AT 20.
1865 - ENTERS THE OIL BUSINESS;
HIRES HIS BROTHER
OPENS STANDARD WORKS.
1868 - ROCKEFELLER IS THE LARGEST
OIL REFINER IN THE WORLD
*1870 - CREATED
STANDARD OIL COMPANY
Standard Oil Co.Standard Oil Co.
1879 REFINED 90% OF THE OIL IN U.S. 70% EXPORTED OVERSEAS.
1904 - 80% OF AMERICAN TOWNS SERVICED BY STANDARD OIL COMPANY
1912 ROCKEFELLER’S FORTUNE PEAKED AT $900,000,000 !!
DIED WITH $26,410,237 AND GAVE MOST AWAY TO FOUNDATIONS AND HEIRS.
“The Protectors of Our Industries”
“The Protectors of Our Industries”
The Work Force
• Immigrants• Women• Children
Sweat shop
Long Hours, low wages, unsafe conditions
The Work Environment
• Dirty• Dangerous• Long Hours
Children at Work
• Jacob Riis• Work was very
dangerous for kids
• Dirty work environment led to health problems for kids
• Kids couldn’t attend school• Families needed the money• Kids were paid less
Growing Gulf Between the Rich and the Poor
• Socialism – redistribution of wealth
Rise of Labor Unions
• American
Federation of Labor
(AFL)
• Labor unions began to form to protest worker wages, safety and hours
Railroad Strike of 1877
Haymarket Riot - 1886
Homestead Strike – 1892
• Public sympathize with the strikers until the anarchists arrive and attempt to assassinate Frick
• The public begins to associate unions and strike with anarchists and violence
Pullman Strike – 1894• Government helps
because the strikers are interfering with the mail.
• This sets the pattern of government response to strikes for years to come.
