The Gilded Age (1870-1900)

The Factors of Production An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit. What are the 4 inputs needed to produce anything: 1. 2. 3. 4.

What advantages did the US have during the Gilded Age? LAND LABOR CAPITAL ENTREPRENUERSHIP

Contributing Factors: Large/rich internal markets Abundant natural resources Human Resources Advanced transportation & communication Stable, laisse-faire economy Easy movement of capital Political stability

Evolution of Industrialization in America (1607 – 1900) Power Source: Building Material: Transport: Communication:

Mark Twain coined the term “Gilded Age” in a novel that satirized the speculation in business and shameful corruption in politics during this this time period.

Gilded Age = Gold Covered for Some

Gilded Age = Not Gold Covered for All

Role of the Rail Roads in Gilded Age Industrialization: Became the symbol of industrialization. Created the first national markets for local & regional products. National markets created new levels of competition. Pioneered and modeled new corporate organization. Lowered the cost of shipping, which reduced the prices that Americans paid for goods. Carrying goods – not people – was the railroads primary contribution to economic growth during this period. New industries developed to support the growth of RRs. Rail roads become the nation’s first big business, and later become the first target of expanding government regulatory powers. Federal government heavily subsidized the construction of the transcontinental railroad.

Development of the modern Corporation: The sale of stock allowed for limited liability and the financing of large national and international business enterprises. Corporations developed new methods of organization and management. The formation of trusts consolidated some industries. *The role of financing the growth of business in the late 1800s became an industry all its own…J.P. Morgan.

Impact of the corporation: The corporation’s systems, bureaucratic organization, and projection (goal) setting in time influenced other institutions: Government Unions Agriculture Military Education

Given all the criticism of the Great Entrepreneurs… Ruthless, monopolistic business practices Corruption of politics and government Exploitation of workers …the quality of life for average Americans improved during the Gilded Age. Employment opportunities Rising wages Lower prices New and abundant material goods

The industrialization and economic growth of the Gilded Age served as a bridge connecting the America of Jefferson and Lincoln… …to the America of Ford, FDR, and Disney.

The nation that entered the 20th century was vastly different from the one the emerged from the Civil War:

How does each document contribute to building a profile of Gilded Age entrepreneurs? Robber Barons Captains of Industry Each student will be assigned a document from the “Rise of the Big Businessman” assignment to analyze. After taking into consideration the sourcing information and the assignment prompt, what information can we glean from the excerpt that will help us build a profile of Gilded Age entrepreneurs as either Robber Barons or Captains of Industry?

How does each document contribute to building a profile of Gilded Age entrepreneurs? Robber Barons Captains of Industry