Economic and Social Dynamics of the Gilded Age

Laissez-faire policies

Businesses were free to operate with minimal government interference, leading to rapid industrial expansion.

Monopolies

Companies that controlled an entire market.

Trusts

Legal arrangements where companies combined under a single board of trustees to avoid competition laws.

John D. Rockefeller

Founded Standard Oil Company, which controlled over 90% of the U.S. oil industry by using horizontal integration.

Horizontal integration

When a company buys out or merges with its competitors to dominate the market. Often associated with Rockefeller.

Andrew Carnegie

Built Carnegie Steel, the largest steel company in the world.

Vertical integration

Controlling every step of production, from mining raw materials to transporting finished products. Often associated with Carnegie.

Robber Barons

Critics argued that these business leaders were greedy, corrupt, and used unethical practices.

Cornelius Vanderbilt

A railroad tycoon accused of ruthlessly undercutting competitors and buying out small businesses.

Captains of Industry

Supporters viewed them as innovators who boosted the economy by creating jobs and expanding industries.

Social Darwinism

An ideology that applied Charles Darwin's theory of natural selection to business and society.

Herbert Spencer

Popularized Social Darwinism, promoting the idea that government should not interfere with the 'natural' social order.

Gospel of Wealth

Andrew Carnegie wrote the essay promoting the idea that the wealthy had a moral obligation to give back to society.

Sherman Antitrust Act

Passed by Congress to combat monopolies and unfair business practices. To prevent companies from forming trusts that restrained trade. The law was weakly enforced and often used against labor unions rather than big businesses.

Republicans

Favored high tariffs to protect American industries.

Gold Standard

Backing currency only with gold, which kept the money supply limited, making loans harder to obtain and favoring the wealthy. Supported by Republicans, it benefited bankers and business owners but hurt farmers.

Democrats

Favored lower tariffs to reduce consumer prices.

Bimetallism

The use of both gold and silver as currency to help farmers and debtors. Supported by Democrats and Populists, it referred to the free coinage of silver to inflate currency, making it easier for farmers to pay off debts.

Spoil System

Both parties were deeply entrenched in the ______ offering government jobs to loyal supporters regardless of qualifications.

Political Machines

Powerful party organizations that controlled local politics through corruption and patronage.

Tammany Hall

The most famous political machine in New York City, led by Boss Tweed.

Pendleton Civil Service Act

Passed in 1883, it required certain government jobs to be filled based on merit (exam scores) rather than political connections.

Weak Presidents

Gilded Age presidents were generally considered weak and ineffective, focusing on maintaining party power rather than reform.

Rutherford B. Hayes

President from 1877-1881 who pushed for civil service reform but faced resistance.

James Garfield

President in 1881 who was assassinated by a patronage-seeker.

Grover Cleveland

President from 1885-1889 and 1893-1897 who advocated for lower tariffs, angering business leaders.

McKinley Tariff

The 1890 tariff that significantly raised tariffs to protect American businesses, benefiting industrialists but hurting consumers and farmers.

Poor Working Conditions

Factory workers faced long hours (12-16 hour days), low pay, and unsafe environments.

Child Labor

Common during the Gilded Age, with children working in dangerous conditions for low wages.

Labor Strikes

Significant events included the Great Railroad Strike of 1877, Haymarket Affair (1886), Homestead Strike (1892), and Pullman Strike (1894).

Jim Crow Laws

Legalized racial segregation in the South.

Plessy v. Ferguson

The 1896 Supreme Court ruling that upheld 'separate but equal', legalizing segregation.

Battle of Little Bighorn

In 1876, the Lakota Sioux, led by Sitting Bull and Crazy Horse, defeated General Custer.

Dawes Act

Passed in 1887, it divided tribal lands into individual plots, forcing Native Americans into farming and reducing their land base.

Chinese Exclusion Act

Banned Chinese Laborers from entering the country and made it nearly impossible for most Chinese people to enter for any reason. First major immigration restriction based on race and nationality

New immigrants

primarily from Southern and Eastern Europe and Asia.