Unit 17: Big Business and Progressivism

Gilded Age

1860-1890, rapid growth in wages, but high poverty and inequality for many, wealth concentrated in the hands of a few, materialistic excess + extreme poverty

gilded

wealth and privileges

free enterprise

economic system in which there is competition between businesses, little government control or interference

entrepreneurs

assume the financial risks and rewards of starting and operating a business

corporations

businesses that sell ownership shares, money invested in the business, investors receive share of the profits made by the business

Andrew Carnegie

Built a steel mill empire; US STEEL

vertical integration

ownership of businesses involved in each step of the manufacturing process, control of the supply chain

horizontal integration

ownership of businesses in an particular field of business or industry, control like businesses

trust

arrangement grouping several companies under one board of directors to eliminate competition and to regulate production

John D. Rockefeller

Established the Standard Oil Company, the greatest, wisest, and meanest monopoly known in history

Gospel of Wealth

article by Carnegie that places responsibility of philanthropy on the wealthy, argued against extravagant spending

Thomas Edison

prolific inventor: light bulb, motion picture camera, phonograph, electric power supply

Henry Ford

founded Ford Motor Company, developed assembly line production technique, mass produced inexpensive goods, paid workers well

Cornelius Vanderbilt

(mid 1800s) built shipping and railroad industry, gift started Vanderbilt University

Mass Marketing

use of slogans, advertising, and visuals to sell products to people

conspicuous consumption

spending money just to display one's wealth

Booker T. Washington

led Tuskegee Institute, argued that African Americans should use education and business to advance equality of the races

W.E.B. DuBois

argued for African American educational and political rights immediately, attacked racism, helped found the NAACP

political machines

organizations that help elect government officials, influence government policies, and control city / state politics, exchanged money and job for votes

Boss Tweed

boss of Tammany Hall political machine in New York, convicted of stealing $200 million from New York treasury via fraud and construction overcharging

Pendleton Civil Service Act

created the modern-day merit-based system under which federal employees take a test and are selected for jobs based on test performance

strike

work stoppage to pressure ownership / management for union demands

Progressivism

reform movement concerned with curing problems of cities and industry

muckraker

investigative journalists who wrote articles to bring about reform in an industry or government

Teddy Roosevelt

became President when McKinley assassinated, increased presidential power, used power to advocate for progressive reforms

bully pulpit

Roosevelt's use of presidency to speak out on vital issues

square deal

Roosevelt's balance of business, consumer, and labor interests

Trust Busting

campaign of legal assault on trusts and monopolies

Roosevelt Corollary

expansion of Monroe Doctrine, stated that US would police the Western Hemisphere to keep foreign nations from intervening in the region

American Federation of Labor (AFL)

est. 1886, unions of same craft, most membership from building trades, coal miners, and railroad shop craftsmen

Samuel Gompers

president of AF of L, used walkouts and boycotts

Homestead Steel Strike (1892)

against Carnegie Steel Company, Pinkerton detectives called in to break up strike, 10 killed in violence, national guard protects nonunion strike breakers working the mills, crushed union power in steel for 40 years

Knights of Labor

unite workers into one big union of producers, pushed for safety and health codes, declined after Haymarket Square bombing and exodus of skilled laborers to AF of L

National Grange

a social and educational organization for farmers

Cooperatives

organizations in which groups of farmers pool their resources to buy and sell goods

Interstate Commerce Act

prohibited railroads from giving secret rebates to large shippers or charging more for short hauls vs. long hauls over the same line, created the Interstate Commerce Commission

graduated income tax

tax rate increases as the income increases

Gold Standard

each dollar was equal to and redeemable for a set amount of gold

Populism/Populist Party

A new political movement focused on giving the common people (like farmers and laborers) a solution to their problems and more say in their government

Suffrage

the right to vote

16th Amendment (1913)

Congress is given the power to tax incomes

17th Amendment

Direct election of senators

18th Amendment

Prohibition of alcohol

19th Amendment

Gave women the right to vote

Elkins Act

forbid shipping companies from accepting money given back in return for business (rebates)

Hepburn Act

set railroad rates and regulated other companies engaged in interstate commerce

Meat Inspection Act

required federal inspection of meat shipped across state lines

Pure Food and Drug Act

forbid sale, manufacturing, and transportation of food and medicine containing harmful ingredients, companies must provide labels