The Gilded Age

Coined by Samuel Clemens (AKA: Mark Twain) Times look good on the surface, but hides a dark underbelly

The Good, The Bad, and the Greedy Panic of 1873 Caused by overspeculation of RR + post-war inflation Resumption Act: Replaced CW greenbacks with gold-backed dollars Black Friday scandal: Jay Gould and James Fisk issue gold- hoarding scheme that tanks the floundering economy “Billion Dollar Congress” Budget surplus under Cleveland due to high tariffs Congress doles out over $1 billion McKinley Tariff – 48% Panic of 1893 Caused by overspeculation of RR and industry + crop failure Cleveland tries to curb Congress’ overspending; fails

BRIGHT IDEAS! Gilded Age Inventions

Industrial Review Change from human labor to machines Change from human labor to machines Development of new energy sources Development of new energy sources Increased use of natural resources Increased use of natural resources Standardization of products Standardization of products Effects on environment Effects on environment Effects on politics and economics Effects on politics and economics

Rise of the Rails First “Big business” in America First “Big business” in America Increased efficiency, safety, and comfort Increased efficiency, safety, and comfort Effects of the railroads Effects of the railroads Connected markets, eased shipping/travel, improved communication Connected markets, eased shipping/travel, improved communication Western cities boomed Western cities boomed Millionaires (and some Billionaires) were made Millionaires (and some Billionaires) were made

Reining in the Rails Problems of Railroads “stock watering”, bribes, rebates, free passes, pools Farmers band together to protest railroad abuses Wabash v. Illlinois – Reaffirmed Congress’ power over interstate trade Interstate Commerce Act/Commission (1887): Regulated railroads and outlawed unfair practices

Tammany Hall and William “Boss” Tweed Thomas Nast Civil Rights Act of 1875 Stalwarts and Half-Breeds Pendleton Civil Service Act of 1883 Mugwumps laissez faire economics Robber baron Social Darwinism Cornelius Vanderbilt Andrew Carnegie John D. Rockefeller J.P. Morgan Vertical integration and horizontal integration Scientific management Monopolies, trusts, and holding companies Gospel of Wealth Gibson Girl Company town “yellow-dog” contract and scabs National Labor Union Knights of Labor American Federation of Labor (AFL) Eugene V. Debs Samuel Gompers Great Railroad Strike of 1877 Haymarket Riot Homestead Strike Pullman Strike closed shops National Grange of the Patrons of Husbandry Munn v. Illinois and Wabash v. Illinois Farmer’s Alliance Populists/People’s Party Omaha Platform Gold Bugs and Silverites William Jennings Bryan and the Cross of Gold speech The Progressive Era Muckrakers Ida B. Wells W.E.B. Du Bois Booker T. Washington Upton Sinclair and The Jungle Sixteenth Amendment Robert La Follette Initiative, referendum, and recall Seventeenth Amendment Sherman Anti-Trust Act United States vs. E.C. Knight Clayton Anti-Trust Act Elkins Act and Hepburn Act Mother Jones Children’s Bureau Triangle Shirtwaist Factory fire Social Gospel Jane Addams and Hull House Women’s Christian Temperance Union Anti-Saloon League Eighteenth Amendment National American Woman Suffrage Association (NAWSA) Alice Paul and the National Women’s Party Nineteenth Amendment Square Deal John Muir and the Sierra Club Dollar Diplomacy Progressive Party/Bull Moose Party Moral Diplomacy Federal Reserve System Federal Trade Commission

The Golden Age of Business Laissez faire economics Businesses grow immensely; unfair/unethical business practices emerge Free Enterprise Companies compete for customers by making a better product at better prices Monopoly Consistency of products and economies of scale; no competition = no choice, prices can skyrocket Interlocking Directorates: A company places their own employees on the board-of-directors of their competitors; their decisions are to cooperate not compete.

How does a monopoly happen? Vertical Integration Ace Meat Industries Delivery Wagons Meat Packing Plant Cooled Warehouse Refrigerated Railroad Cars Slaughterhouse Cattle

How does a monopoly happen? Horizontal Integration U.S. Oil Company Independent Oil Refinery

Opposing Views of Business Social Darwinism Applies Darwin’s evolutionary theory to society and politics Captain of Industry Behaved ethically in business, increased productivity and markets, increased jobs, philanthropists Robber Baron Behaved unethically in business, exploited workers and consumers, placed the accumulation of wealth above all else

The Wealthiest Americans EVER

The Wealthiest Americans EVER… and he’s not even #1!

Masters of Business: The men who built America

Free Enterprise: Companies compete to win customers by making the best products at the lowest prices. You will be designing a drink that would appeal to high-schoolers. You will come up with a name, design the can, and come up with a slogan or catchphrase for your drink. You must make it clear what sets your drink apart from the rest, as well as come up with a competitive price for your drink. You will be “selling” this to your classmates, so make sure it’s creative and something you would buy!