Which do you feel were the most influential factors in the 19th century transformation of the American economy? What were the consequences of this transformation?
How was the late-19th century American working class both a beneficiary and victim of the growth of industrial capitalism?
Analyze the way in which the size and membership, organization, and effectiveness of the labor movement changed in the late 19th century. What were the advantages and disadvantages of belonging to a union? (Adapted from the 1985 U.S. AP History free-response question.)
Why do they call it the Gilded Age?
The term Gilded Age refers to the political and economic situation 1876 to 1900.
The term "Gilded Age" was coined by Mark Twain
A period of ruthless profit, government corruption, mass consumption, and vulgarity in taste and manners.
Historians Comment (Charles and Mary Beard)
“With a stride that astonished statisticians, the conquering hosts of business enterprise swept over the continent;
25 years after the death of Lincoln, America had become, in the quantity and value of her production, the first manufacturing nation of the world.
What England accomplished in a hundred years, the United States had achieved in half the time.”
What is the Industrial Revolution about?
Rise of Cities
Decline in pop from rural areas
Reform- (Progressives- Fix the problems of industrial society)
= The Transformation of the US national Economy
When does the Industrial Revolution take place?
Various periods of American History
1st Industrial Revolution 1800-1860 begins in early 1800’s with textile manufacturing and iron production
2nd IR really takes off in the latter part of 1800’s, ca 1870-1915
The development of factory production has consequences for virtually every portion of society.
Industrialization brings positives effects:
Inventions are created-More products--produced faster-- produced cheaper
Jobs are created--- people have money to buy more goods-economy gets better for everyone
Rich people get richer-- create more factories or businesses -- create more jobs--economy gets better for everyone
Immigration-when jobs are available-------people move to the location of jobs-industrialization causes immigration--
Factories are built where people live-------cities grow
The development of factory production has consequences for virtually every portion of society.
Industrialization brings negative effects:
Industrialization causes--pollution-air, water
Industrialization causes---poverty- government doesn’t protect workers at first- workers compete with other workers for low skill jobs- workers work long hours- get low pay- unsafe working conditions
Poverty is so bad-children need to work
Massive wealth is created by factory owners- causes corruption- business owners use money to influence government officials
Changes due to Industrialization
Technology: New products and inventions consumer and business
Business Organizations: Corporation, Trusts
Cities Grow: rural to urban migration and immigration, c
Labor Protections: unions, working conditions, benefits, safety
Reform Movements: the Progressives will react to the changes brought by industrialization, pollution, food and drug regulations, political reforms
Sources of Industrial Growth
Large Labor Supply
Federal Gov = eager to support business
Domestic Markets for goods
Iron and Steel
1870-1880s Iron Production soared
Then Steel= 40,000 miles of track
Aided by the Bessemer Process
Blowing air and secret ingredients through molten iron to burn out impurities
Farmers will be angry with RR for price fixing and monopoly
Grangers- or farmer groups push state regulations on railroads- these laws are negated by the Interstate Commerce Act 1887, removing any jurisdiction over railroads by states, only the Federal Government can regulate trade between states.
Spurs the growth of corporations and the middle class
Dividend- a return on profits, paid to stock holder
Business http://us.history.wisc.edu/hist102/lectures/lecture05.html (Great Web Site)
Trust: stockholders in individual corporations
transfer stocks to a group of trustees, in exchange for shares in the trust itself
Holding Company: trust or corporation that buys stock or owns businesses in other industries, oil refinery owns a railroad.
Horizontal Integration: expansion of one corporation or owner takes over other businesses in and industry, example Standard Oil- forces out of business other oil companies.
Vertical Integration: form of business expansion where one industry controls aspects of the business, raw materials, to the distributor example: Carnegie began with steel mills, then railroads, coal mines, iron mines, and distributor of
Development of Holding Companies, Trusts, and Corporations
Results in the concentration of political and economic power in the hands of a few people.
increase in technology and the types of products that are produced-
“Active Government & positive planning=Good for Society
Due to Excessive Capitalism Social Critics Emerge 1880s
Looking Backward: 2000-1887
Suggested a socialist society would emerge- and class divisions would disappear and all would be equal
Progress and Poverty
Saw excesses of Industrialization
Offered a solution- tax on land to create a social state- to solve poverty
Henry George Explained why poverty existed.
“This association of poverty with progress is the great enigma of our times. So long as all the increased wealth which modern progress brings goes but to build up great fortunes, to increase luxury and make sharper the contrast between the house of have & the house of want…
Progress is not real and cannot be permanent.”
From Poverty and Progress
Gap Between Rich and Poor
10% of population owns 90% of wealth
2/3 of the population were working class, employed by someone else.
Included skilled and unskilled workers
Skilled workers were paid more
Women and children work in factories-
Industry and the Workers
Work in these factories was:
Dangerous: People lose fingers, limbs, become physically handicapped, stooped over, and other health problems.
The United States is a nation of immigrants. By 1860 1/4 of population was born in another country.
Immigration to the United States occurs in waves.
The First Wave of Immigrants: 1820-1860-
Irish- 2 million
German- 1.5 million
1825- 10,000 immigrants
1845- 100,000 per year
Second Wave of Immigration 1860-1920
1865-1890- 9 million arrive
1890-1915 16 million arrive
1910 ½ the people of cities are Immigrants
New Immigrants Second Wave of Immigration 1870-1914, 25 million European Immigrants by 1920, 40% of pop-foreign born
1870- 1 in 7 were Irish Immigrants (New York)
Southern and Eastern Europe
Italians 3.6 million come.
In the West- Chinese and then Japanese
1880- 457,000 Immigrants landed in Boston, New York, Philadelphia, Baltimore, New Orleans
Most were unskilled:
Worked in Factories
Emma Lazarus- Poet
“Give me your tired, your poor,Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed, to me: I lift my lamp beside the golden door.”
Factors that pushed immigrants out of their native lands to America:
Lack of Economic Opportunity
Political Repression - No freedom
No hope of a future
Factors that pulled immigrants out of their native lands to America:
Jobs/ workers were needed
A future of land ownership
Peace and stability
Freedom to make a better life
Irish Potato Famine 1846-1851
August 1845 the Irish potato crop was blighted or stricken with a disease.
The disease ruined the main source of nutrition for the population.
Famine, starvation, and disease killed much of the population.
While the poor of Ireland starved British land owners and merchants made money.
1845- 25 million bushels if grain was shipped out.
1846-50 3 million live animals were exported
1847 1.3 million gallons of grain derived alcohol was exported.
1845-1860 the population of Ireland was reduced by 1/3.
1845 population = 8.2 million
1860- Pop = 5.8 million
1920- Pop = 4.2 million
1 million died from starvation and disease.
2 million left to America
1860-1926 4 million more went to the US.
How did/do people react to immigrants coming to America?
Whenever a new group enters into an established community tension is caused and a pattern of development can be seen.
When the Irish came in the 1840’s the established groups of British and Germans did not like the new Irish.
They were looked down upon and discriminated against. See cartoons.
Xenophobia- anti foreigner attitudes
Nativism- The idea of blaming immigrants for problems.
Established groups blamed the new groups for problems:
Taking Jobs, Lazy -Famous Slogan: “No Irish Need Apply”
People said they were responsible for: Crime
Immorality- alcohol abuse
Catholics- not loyal to America
Inferior, Damaging to the United States
City life for Immigrants
The “New” group usually congregates together and forms an almost isolated community and institutions in the giant and growing cities of America.
The Irish came together in great neighborhoods and sections of all Eastern Cities.
They formed their own political groups and parties.
They used their large numbers to build powerful political groups that dominated some large Cities and industries in those cities.
Example: Police and Firemen in New York, Boston, Chicago, Philadelphia.
They set up:
Churches, Hospitals, Welfare Organizations, Schools, Social Clubs, Political Organizations
They helped each other in exchange for loyalty during the voting season.
The best example of ethnic group organization was called the Political Machine.
This was an organization of political and community leaders that manipulated democracy for material gain. Leaders of an ethnic community would use their influence to raid public funds and offer rewards to loyal community members.
Boss Tweed and Tammany Hall of New York City, were infamous for their political strength and corruption. They were reputed to have stolen millions in public funds.
1876-1890’s 6 Pres 4 were Republicans
Hayes- (Repub) 1876- disputed election Secret Deal, ie., Reconstruction Compromise of 1876, did not run again in 1880.
Garfield (Repub) 1881, Assassinated by Guiteau, Office Seeker,
The Sherman Antitrust Act was the first legislation to limit trusts
It was based on the constitutional power to regulate interstate trade
Stockholders transferred their shares to one person or trustees who then controlled the company and eliminated competition
The Sherman Act authorized the government to dismember trusts and to prevent monopolies
In 1895 the Supreme Court abolished the Sherman Act in the United States v. E. C. Knight Company
Election of 1896
The Republicans nominated William McKinley from Ohio (good war record, congressional track record, well-liked)
At the democratic convention in Chicago the party was in disarray and could not find a good candidate
William Jennings Bryan took the stage and delivered his “Cross of Gold” speech and immediately gained the nomination
He was a silverite from Nebraska
The democrats demanded unlimited coinage of silver at a ratio of 16-1
William Jennings Bryan
Democrat, Strongly Christian, reflected traditional farmer values
Pro-silver, farmers, and westerners
Becomes the Democratic Nominee for the Election of 1896
Populists support him
Later will defend the teaching of Creation in the Scopes Trial, Tennessee vs. Evolution in schools.
“Cross of Gold Speech”
“I come to speak to you in defense of a cause as holy as the cause of liberty- the cause of humanity,”
Burn down your cities and leave your farms and your cities will spring up again as if by magic; but destroy our farms and the grass will grow in the streets of every city in the country”
“Having behind us the producing masses of the nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them;
You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold!”