Period 6: 1865-1898 AP US History Review

Key Concepts The Rise of big business in the United States encouraged massive migrations and urbanization, sparked government and popular efforts to reshape the US economy and environment, and renewed debates over US national identity. The emergence of an industrial culture in the United States led to both greater opportunities for, and restrictions on, immigrants, minorities, and women The "Gilded Age" witnessed new cultural and intellectual movements in tandem with political debates over economic and social policies

Gilded Age Mark Twain referred to this time period as the "Gilded Age," indicating that the prosperity on the surface covered up the corruption that lay underneath. An essay dealing with this time period will require you to understand the causes and effects of the enormous expansion of the US Economy in the post-Civil War Period

Westward Expansion Policy towards Native Americans: Assimilation The Dawes-Severalty Act

Rise and Development of Industrial America US Government played a huge role in this transformation: Imposed protective tariffs Gave land to build railroads Aided in the settlement of the West Loose immigration policy that increased labor (but decreased wages) Encouraged capital investment by leaving large-scale businesses untaxed

Ascendancy of Corporation resulted from... The capitalist class's success in controlling the free market system to ensure profitability and economic growth. This was accomplished by: Regulating production Creating stable markets Setting prices and wages

Huge labor force of men, women, and children Factors that brought about the enormous production of enormous production of industrial commodities New technological developments, such as the steam engine, conveyer belt, and better construction materials (steel) Huge labor force of men, women, and children Large scale factories and production centers An enormous amount of capital

Capitalist Class Andrew Carnegie (steel industry) John D. Rockefeller (Standard Oil) Gilliam H. Vanderbilt (Railroad industry) J. P. Morgan (Investment Banker)

Era of rapid Capital Accumulation Capitalists were influenced by British economist Adam Smith's book The Wealth of Nations Smith favored limited government intervention (laissez-faire). Prices and wages and supply and demand were already regulated, not by the government, but by the "invisible hand"

Government-Business Relationship After the Civil War, US government aided industrial capitalism by protecting it from these that wanted regulation Relationship took on two forms: State and federal court systems were used to prevent regulation of business by state legislatures. Trade Unions were suppressed. Outcome: Many industries were not fair and equal competition, but monopolies

Advocates of Laissez-faire argued the following views: Social Darwinism: societies "fittest" (wealthy) should be protected because it was this class through its development of business and as financial contributions to education and cultural institutions that was improving the species (human race) Horatio Alger: self-sacrifice, determination, and hard work can overcome anything. The "American Dream" Russell Conwell- "It is your duty to get rich. It is wrong to be poor." Carnegie's "Gospel of Wealth"- Duty of the wealthy to contribute to society and give to philanthropic programs. Wealthy, not the government, was society's benefactor

Labor Unions and Strikes Workers, outraged by their poverty wages formed labor unions National Labor Union (first labor union; more wages and 8 hour workday ) Knight of Labor (arbitration) American Federation of Labor (skilled workers only; used its membership numbers to win concessions) Industrial Workers of the World (Radical. Wanted more than increased wages. Wanted to own the means of production (socialism)) Strikes Railroad Strike of 1877 Haymarket Square (Chicago) Riot of 1886 The Homestead (Pennsylvania) Strike of 1892 The Pullman Strike of 1894

Legislation to protect workers The Sherman Antitrust Act- "any combination or condition which is in restraint of trade is illegal" United States v. E. C. Knight Company

Politics During the Gilded Age Republican presidents dominated the postwar era and tended to support big business

Presidents Ulysses S. Grant- Corrupt presidency. Honest himself but surrounded by corrupt officials and friends. Grover Cleveland was the only Democrat elected until 1912 (W. Wilson)

"Billion Dollar Congress" The McKinley Tariff of 1890 The Sherman Silver Purchase Act of 1890 The Sherman Anti-Trust Act of 1890 The Wilson-Gorman Act of 1894, which increased the tariff

Debate over the Money Supply: Decrease or Increase the Money Supply? Included expectant capitalists; debtors; and farmers Borrow Money at lower interest rates Pay-off their loans faster and easier with inflated dollar Increase prices for the commodities they produced Decrease Included bankers, entrenched capitalists, creditors, and investors To allow currency to hold its value, since gold-backed money is less susceptible to inflationary instabilities To increase the value of gold as the the population expanded

Farmers America switched from agrarian to manufacturing, and many farmers were left behind Faced higher taxes and had limited land (railroads paid fewer taxes and was given a lot of land) Prices for wheat, corn, and cotton dwindled Organized the Populist Party but was not very successful

Any Questions? Have a great and productive Spring Break!!