1. The Gilded Age

2. Second Industrial Revolution
Railroad expansion
New Inventions
Telephone, typewriter, cars, etc.
New Energy Sources found
Oil
Coal
Electricity

3. Capitalism
America operated (and operates) primarily under a capitalist or market economic system.
private businesses run industries
Prices and wages are determined by competition and the laws of supply and demand.
laissez-faire capitalism = government should stay out of the economy
Benefits of capitalism include quality products and good prices.
Capitalism does cause inequality.

4. Rise of the Super Rich (Robber Barons)
Andrew Carnegie – Steel
John D. Rockefeller – Oil
Cornelius Vanderbilt – Railroads
Jay Gould -- Railroads
J.P. Morgan – banking

5. Iron Law of Wages ‘Pay as low as the worker would accept’
Immigrants made this easier
Govt. officials had ties to big business

6. Gospel of Wealth
All lived lavish lifestyles but many also became great philanthropists
Many promoted the idea of Social Darwinism- Stronger people, businesses, and nations prosper, weaker ones fail.
Believed that “survival of the fittest” would strengthen society as a whole

7. Rise of Labor Unions
Upset by harsh working conditions, unions organized strikes
Railroad Strikes of 1877 and 1886
Haymarket Riot in Chicago
Pullman Strike
Government always sided with business (Corruption)

8. Political Machines
Organizations that powered friendly candidates to office
Run by ‘Bosses’
Used underhanded methods to gain votes
Stuffing ballot boxes
Bribed vote counters
Intimidation

9. Tammany Hall Most famous of the Political Machines (NYC)
Run by William ‘Boss’ Tweed

10. Progressives Group of Reformers hoping to improve society Goals:
Fight crime, disease and poverty
Work for better working conditions
Establish public education

11. Muckrakers
Progressives were spurred on by a new class of journalists – muckrakers
Wanted to ‘expose’ the bad side of society
Focused on issues such as:
Child labor
Racism
Slum housing
Corruption

12. Movement to Cities
NY, Philly, Chicago all had over 1 million residents
Introduction of skyscrapers and elevators
Increase in crime and rise of organized crime

13. Economic Vocabulary
Capitalism – economic system where the means of production and distribution are privately controlled
Socialism – economic system where the means of production and distribution are controlled by the community or centralized entity (usually government)
Laissez-Faire – economic policy of a government not interfering with commerce
Monopoly – gaining exclusive control over an industry
Philanthropy -- concern for human welfare marked by donations of money, property or work