Section 2: Political and Economic Challenges

Objectives Analyze the issue of corruption in national politics in the 1870s and 1880s. Discuss civil service reform during the 1870s and 1880s. Assess the importance of economic issues in the politics of the Gilded Age.

Terms and People spoils system – a system in which politicians awarded government jobs to loyal party workers with little regard for their qualifications civil service – a system that includes federal jobs in the executive branch Pendleton Civil Service Act – a law passed in 1883 that established a Civil Service Commission, which wrote a civil service exam gold standard – using gold as the basis of the nation’s currency

Why did the political structure change during the Gilded Age? Congress passed few laws between 1877 and 1900, in an era marked by inaction and political corruption. The Gilded Age raised questions about whether or not democracy could succeed.

• Presidents during the Gilded Age were elected only by slim margins. • Neither political party achieved control of both the White House and Congress for more than two years in a row. • Presidents during the Gilded Age were elected only by slim margins. Between 1877 and 1897, party loyalties were evenly divided.

Corruption plagued national politics as many officials accepted bribes.

Mark Twain expressed concerns over the corruption. The spoils system, in which party supporters received government jobs regardless of their qualifications This system made the political parties extremely powerful. A movement arose to promote civil service reform. 7

Chester A. Arthur became President and supported civil service reform. Pendleton Civil Service Act: established a merit-based system for government employment.

The economic issues of tariffs and monetary policy caused debate during Gilded Age. Tariffs on imported goods supported American industry but increased consumer prices. Monetary policy disputes concerned the gold standard, where gold became the basis of the nation’s currency.

Monetary policy centered on a debate over the Coinage Act of 1873. Some people wanted to use only gold as money. Some wanted to use both gold and silver. Bankers were worried silver would weaken the economy. Farmers favored it to create inflation and raise their income. 10

Section 2 Assessment In what ways did the spoils system lead to corruption? (Pg. 531) Why didn’t the federal government make significant political gains in the late 1800s? (Pg. 529-530) What was the importance of the gold standard? (Pg. 532) What are the pros and cons to tariffs? (Pg. 532)

People could receive government jobs regardless of qualifications Neither party controlled both parts of Congress for 2 years in a row It became the basis of the nation’s currency Pros: Grows/promotes economic growth Cons: Made it harder for farmers to sell products