HIST 152 - Big Business, Globalization, Labor Strikes and Conflicts in Post-Civil War America, HIST 152 - Reconstruction , HIST 152 - Economic Problems, HIST 152 - Ford Motor Co. , Globalization, Happiness, and Clinton's Presidency, Impact of Cold W…

Who was Jay Gould and how did he gain wealth?

Jay Gould was a speculator who gained wealth by manipulating the securities market, buying and selling companies, especially railroads, and cornering the gold market in 1869.

What was Gould's 1869 gold scheme?

Gould bought large amounts of gold and leaked rumors he represented the U.S. government, driving up prices. He profited massively, but faced public backlash and was vilified in the press.

What made John D. Rockefeller's Standard Oil successful?

Rockefeller emphasized scale, vertical integration, and efficiency in refining, manufacturing, marketing, and transporting oil and its by-products.

What is vertical integration?

A business strategy where a company controls all aspects of production, from raw materials to distribution (e.g., Standard Oil owned refineries, barrel plants, shipping, and tank cars).

What advantages did scale offer businesses like Standard Oil?

Cost-saving machinery, specialization of labor, bulk material purchasing, and R&D departments (Nevins, 1953).

Was Standard Oil always ethical?

No; it used unfair transportation rates, pressured competitors, and employed deception. In 1879, 9 officials were indicted, including Rockefeller.

How did Rockefeller use his wealth philanthropically?

He gave to churches, hospitals, the YMCA, nurseries, and the WCTU.

How did Andrew Carnegie rise in business?

Starting as a telegraph operator, he was mentored by Thomas Scott and invested in iron and steel, eventually founding Carnegie Steel.

How did Carnegie survive the Panics of 1873 and 1893?

By liquidating assets to support his companies and managing operations efficiently, Carnegie Steel continued to make profits even in depression.

What was the "sliding scale" wage system Carnegie used?

Workers' wages rose or fell based on the employer's profits. It rarely protected workers during downturns.

How did Carnegie treat labor?

He opposed unions, cut wages, and used lockouts, scabs, and Pinkertons during strikes (White, 2017).

What were working conditions like in Carnegie's mills?

Extremely dangerous—molten metal, unstable materials, high fatality rates (Pittsburgh's steel mill death rate nearly doubled from 1870 to 1900).

What philosophy influenced Carnegie's business approach?

Herbert Spencer's "Survival of the Fittest" and laissez-faire capitalism.

What is The Gospel of Wealth (1889)?

Carnegie's essay defending wealth concentration and urging the rich to use their fortunes for public good.

Examples of Carnegie's philanthropy?

Carnegie Hall (1892), Hero Fund (1904), Foundation for Teaching (1905), Pittsburgh libraries ($700k), and others. At death, he was worth $26 million.

Who was Gustavus Swift and what innovation did he pioneer?

A meat packer who developed refrigerated railroad cars using Great Lakes ice to ship fresh meat, revolutionizing food transport.

How did Swift market his products?

Hired local salesmen, involved storekeepers in promotion, and coordinated advertising and distribution.

What major economic trend occurred between 1895-1907?

Mergers and consolidations—an average of 266 firms per year disappeared into large corporations. In 1899 alone, 1,208 firms merged.

What was the impact of these mergers?

Large corporations gained dominant market control (63% or more in many sectors); wealth concentrated among a few.

By 1893, how unequal was American wealth?

9% of the population owned 71% of the nation's wealth.

What characterized pre-1860 vs post-1900 businesses?

Pre-1860: Small, family-run, labor-intensive, local markets.Post-1900: Large, corporate, bureaucratic, capital-intensive, mass-market (national/international).

What is trade integration in the context of globalization?

Trade integration refers to increased trade between countries, including outsourcing and the rise in global trade volume.

What is financial integration in globalization?

Financial integration involves the increase in capital flows between countries, reflecting interconnected global financial markets.

How has information technology contributed to globalization?

It has enabled large-scale knowledge integration, allowing information to be shared quickly and widely across the world.

What is political integration in globalization, and what trend is currently observed?

Political integration refers to nations uniting under shared governance or policies, but recent trends show reversals, such as Brexit and Catalonia's independence movement.

When did the Washington Consensus shape the modern economic order?

In the 1980s

Criticism of the Washington Consensus?

What was a consequence of rapid privatization in Latin America?

It often failed to deliver the desired economic outcomes

What assumption did international regulatory agencies like the IMF often make about markets?

That markets arise quickly and meet every need after liberalization.

What is the reality about how markets typically arise?

Markets arise more slowly and in relation to government activity.

What mistake was made in Côte d'Ivoire's telecom privatization?

The sector was privatized before establishing a regulatory or competition framework.

What was the result of the telecom privatization in Côte d'Ivoire?

A French company was given a monopoly over phone and cellular services.

How did China approach economic liberalization differently?

By opening gradually—reducing tariffs, eliminating quotas, welcoming foreign capital, removing exchange controls, and making its currency convertible.

Who besides consumers may suffer from privatization?

Workers, who face job insecurity and minimal severance pay.

Why do private firms often ignore social costs of unemployment?

Because they are not sensitive to broader social consequences and focus on profit.

What does privatization allow employers to do more freely?

Hire and fire workers at will, often with minimal severance compensation.

what has privatization contributed to in the US according to some sources?

Broken highways, bankrupt cities (e.g., Detroit), collapsing bridges, failed schools, the unemployed, underpaid, and uninsured.

What is one major criticism of privatization regarding public infrastructure and services?

It can lead to neglect and deterioration of essential public goods and services.

What period was marked by growing equality in the West?

From the late 19th century through the 1970s.

What policies contributed to greater equality during that time?

Progressive taxation, government subsidies for the poor, and social services (e.g., Social Security Act of the 1930s).

How did people view the pursuit of wealth and government's role as recently as the 1970s?

The idea that life's goal was to get rich and that government should enable this was ridiculed—especially in Europe.

According to Judt, what do today's students mostly aspire to?

Lucrative jobs, particularly in Business and Finance.

How does today's student interest differ from that of the 1960s generation?

1960s students were more interested in Literature, History, Art, and Philosophy.

What trend have some politicians, especially Republicans, embraced regarding social services?

They have contemplated unraveling social services, welfare, and state-funded cultural and educational resources.

What is threatened by privatization, according to the text?

Social services, welfare provisions, and public cultural/educational institutions like the National Endowment for the Humanities.

What mindset does the alternative to privatization require?

A collectivist mindset—not Communist, but focused on common purpose and mutual dependence.

According to Judt (2010), what duty do governments have?

Governments have a duty to provide goods and services in the public interest.

What has globalization's recent trend emphasized?

Metrics showing globalization's beneficial effects, rather than public welfare.

How did South Korea, Taiwan, and Singapore approach globalization?

They opened up slowly and in a sequenced way, dropping protective barriers carefully and only after creating new jobs.

What was the result of the globalization approach taken by South Korea, Taiwan, and Singapore?

They expanded exports, grew their economies, and benefited from globalization.

What happened to some sub-Saharan African countries that liberalized trade too quickly?

Their income declined by more than 2% due to trade agreements.

What is the lesson from comparing East Asian and sub-Saharan African experiences with globalization?

Gradual, planned integration into the global economy is more beneficial than rapid, unregulated trade liberalization.

Why is it important for developing countries to have safety nets before liberalization?

Safety nets help soften the impact of recessions and protect people displaced by market forces.

What happens when liberalization is forced before safety nets and regulations are in place?

It leads to failure, disillusionment with market economies, and intervention from organizations like the IMF.

According to Stiglitz (2012), what does liberalization lead to?

It leads to increased instability and inequality, rather than promoting economic growth.

Why is the role of government emphasized in relation to liberalization?

Governments are crucial in creating safety nets, regulatory frameworks, and managing the adverse effects of market shifts.

What do market systems require to function properly?

Market systems require property rights, enforcement by courts (rule of law), competition, and perfect information.

What limitations do markets face in terms of competition and information?

Competition is often limited, and perfect information is not always realistic.

According to Stiglitz (2003), what is the consequence of financial market liberalization without proper regulation?

It leads to economic instability and may result in higher interest rates.

What happens when privatization occurs without competition policies or oversight?

It can lead to higher prices for consumers due to the abuse of monopoly powers.

What is the potential consequence of blind austerity, according to Stiglitz?

Blind austerity can lead to high unemployment and the destruction of the social contract.

How did the 1990s reflect a global American cultural presence?

The U.S. dominated culturally, economically, diplomatically, and militarily, similar to the post-WWII environment.

What claim do champions of the U.S. make about its global influence?

The U.S. accounts for 25% of global economic activity with only 5% of the world's population and 75% of Nobel Prize winners in science, medicine, and economics (1/3 of which are foreign-born).

According to Diamond (2019), how does the U.S. compare to other countries in science?

The U.S. leads the world in major scientific fields, measured by published articles and Nobel Prize winners.

How does the U.S. compare globally in terms of Nobel Prize winners in science?

The U.S. accounts for 75% of Nobel Prize winners in science, medicine, and economics, though a third of these are foreign-born.

What is one indication of American cultural supremacy in global rankings?

About 7-8 of the top 10 universities in the world are located in the U.S.

How does the U.S. defense budget compare to other regions?

The U.S. defense budget is larger than the combined defense budgets of entire continents; Europe's defense budget is less than half of the U.S.'s (around 2000).

What role does English play in global diplomacy?

English is the reigning lingua franca, with 120 countries at the United Nations specifying English as their business language.

According to Diamond (2012), what is happening to languages globally?

95% of languages are on track to disappear by 2100.

What is the primary cause of the record-high rate of language extinction?

The homogenizing influences of globalization and the spread of state government worldwide (Diamond, 2012).

In which area is American global presence especially pronounced?

In popular culture, including music, movies, clothes, fast food, and sports.

How successful are Hollywood films in global markets?

Hollywood films capture large audiences: 54% of Italians, 76% of Germans, and 86% of people in the UK.

How has France responded to American cultural dominance?

France has required that at least 40% of TV and radio content be domestically produced and has subsidized its movie industry to preserve its national identity.

What does the French approach to media and culture demonstrate?

It shows the role of government in working with markets to determine cultural products and preserve national identity.

What is the fear related to the globalization of culture?

The fear is that globalization will lead to the homogenization of countries and the information/entertainment they consume.

Why is this cultural trend particularly feared in the Middle East?

Cultural products from the West often promote values like scientific reasoning, secularism, individualism, freedom of expression, political pluralism, and equal rights for women, which are seen as destabilizing in deeply religious societies.

What is the potential consequence of adopting Western cultural values in the Middle East?

It could lead to "Identities in Crisis," where traditional values and identities are threatened.

How might globalization affect children, especially in relation to American popular culture?

Globalization could make children more exposed to American popular culture, which may affect their values and identity.

What did Paula Fass (2003) find about the effect of global market forces on children?

Global market forces can pull children into the cash economy, disrupting traditional cultural identity and family connections.

What is an example of globalization influencing children's products across cultures?

Blond Barbie dolls sell just as well in Asia as they do in the U.S., according to a Mattel official.

What is an example of globalization influencing children's media in the U.S.?

By 1993, 73% of toys sold in the U.S. were made abroad—primarily in China—making global franchises like the Mighty Morphin Power Rangers popular among American boys.

Why is sheltering children from globalization unrealistic?

Global influences are deeply embedded in everyday products and media, making complete isolation from these forces impractical.

What is one major stake of globalization according to Robert Wright (2000)?

Globalization can raise a nation's per capita GDP, which is strongly correlated with increased average happiness among citizens.

How does economic growth relate to happiness in the context of globalization?

Higher per capita GDP, often driven by global trade and integration, tends to improve the overall well-being and happiness of a population.

How strong is the link between GDP and happiness for wealthier nations?

Once a nation reaches a comfortable standard of living, further income growth brings little to no additional happiness.

What happened in the U.S. between 1975 and 1995 regarding GDP and happiness?

Real per capita GDP grew by 43%, but average happiness remained nearly unchanged (Hobsbawm, 1999).

What does Wright (2000) say about the Irish compared to other wealthy nations?

Despite being less wealthy, the Irish report greater happiness than the Germans, Japanese, and British.

Which nations are among the most unhappy, according to Wright (2000)?

Former Soviet satellite states like Bulgaria, Belarus, Latvia, Romania, Estonia, Lithuania, and Hungary.

What might explain the unhappiness in post-Soviet states? What might explain the unhappiness in post-Soviet states?

Possibly a sense of deprivation after exposure to Western consumerism and modern capitalist standards, echoing earlier discontent like the German exodus from the Soviet zone.

How have poor nations generally fared economically since around 2000?

In absolute terms, poor nations have generally become less poor, with economic output rising even amid some stagnation.

Why might the economic gains of poor nations still seem disappointing?

The poorest 10% of the world saw their income share grow only from 0.3% to 0.5% between 1965 and 1997 (Wasow, Century Foundation).

How did the richest share of world income change between 1965 and 1997?

It increased from 50.6% to 59.6%, showing widening inequality.

What does Joseph Stiglitz (2012) argue about globalization and inequality?

Globalization is almost surely a significant contributor to growing inequality.

Why can progress in global poverty reduction be misleading?

Though 100 million fewer people lived on less than $1/day between 1990-1998, this improvement doesn't address the growing gap in economic equality.

What was the economic growth of the US from 1870 to 1900?

GNP grew more than four times its size, with manufacturing outpacing agriculture.

What event is known as the Great Strike of 1877?

A strike by Baltimore & Ohio Railroad workers who refused to handle rail traffic due to a 10% wage cut.

What triggered the Great Strike of 1877?

Wage cuts implemented by executives in response to the Panic of the 1870s.

What was the outcome of the initial conflict during the Great Strike of 1877?

A melee erupted, resulting in the death of a railway guard and subsequent riots.

How many people died during the riots following the Great Strike of 1877?

10 people died, 16 were jailed, and 250 were arrested.

What was the national response to the Great Strike of 1877?

Disturbances broke out in cities like Buffalo, NY, and Alatoona, PA.