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robber barons
- a powerful business leader who built a large amount of wealth using unfair business practices such as monopolies
- "robber" = took advantage of others, "baron" = enormous wealth
captain of industry
a business leader whose means of building a personal fortune contributes positively to the country through enabling the nation's economic growth in industries like steel, coal, or banking.
cornelius vanderbilt
- robber baron
- built fortune in steamboats, later expanded into railroads between chicago and new york
- ruthlessly consolidated railroad companies and promoted use of steel tracks
john d. rockefeller
- robber baron
- used strategy of horizontal integration to avoid competition
- founded standard oil which at one point controlled almost all u.s. refineries
andrew carnegie
- robber baron
- sold steel empire to major financier and promoted philanthropy through gospel of wealth
- pioneered vertical integration and controlled every stage of steel industry
j. p. morgan
- robber baron
- banker and investor who dominated corporate finance and organized major consolidations like general electric
- provided u. s. government with massive loan during 1890s gold crisis and created u. s. steel
vertical integration
- A business strategy where one company controls every stage of the supply chain
- used by andrew carnegie who pioneered vertical integration
horizontal integration
- A business strategy of where a business takes out competitors operating in the same industry in order to avoid competition and have a monopoly on the industry
- used by john d. rockefeller
trust
- A business practice where several people from an industry come together to form a larger company in order to limit destructive competition
- important because it created large and powerful monopolies and led to the Sherman Antitrust Act.
monopoly
one company controls an entire industry
pools
agreements where competing businesses fixed prices and divided up markets to eliminate destructive competition
laissez-faire government policies
- A hands-off approach that said businesses and individuals should be able to operate without the government interfering
- helped business owners but hurt consumers and factory workers
social darwinism (survival of the fittest)
- A misinterpreted idea that originated from Charles Darwin's theory about natural selection, people said that some were successful solely because they were naturally superior to others
- people used the idea of Social Darwinism as a way to defend the success of wealthy business owners and the failures of workers
who wrote the gospel of wealth
andrew carnegie
message of the gospel of wealth
- the poor should be supported and aided in a way the wealthy saw fit
- rather than giving handouts to poor, wealthy would fund institutions that would uplift the poor (like schools)
who would agree with the philosophies in the gospel of wealth
- wealthy industrialists (like Carnegie), favored philanthropy over direct aid
who would disagree with the philosophies in the gospel of wealth
- workers and labor leaders
- populists and socialists
- social darwinists
interstate commerce act (1877)
- A law that helped regulate the railroad industry and controlled monopolies
- nominal restrictions but set precedent for government to protect public interest against private enterprise
sherman antitrust act (1890)
- first federal law passed to restrict trusts and monopolies
- reflected growing public concern that monopolies were harmful to the principles of a free market
Why was the Sherman Antitrust Act ineffective?
it was vaguely worded, poorly enforced by the federal government, used against unions instead of monopolies, and narrowly interpreted by the Supreme Court
why were unions formed
to demand better working conditions for the workers in the factories such as higher pay and shorter hours
conditions for workers under laissez-faire policies
- worked long hours
- dangerous working conditions
- low pay
how was the sherman antitrust act used against unions instead of trusts
people said that labor unions are just another form of a monopoly that can harm the free market and trade
1877 railroad strikes
- sparked by wage cuts in the railroad industry
- federal troops intervened
- left over 100 workers dead
1886 haymarket square
- labor rally in Chicago that turned deadly when a bomb exploded
- killed police and civilians
- radical anarchists were blamed
1892 homestead steel strike
- andrew carnegie's manager henry clay frick cut wages and increased hours which fueled worker anger
- workers fought against Pinkerton guards at a steel plant
- federal troops eventually ended the strike
1894 pullman strike
- nationwide strike of railroad workers led by Eugene debs
- over 125,000 employees joined
- ended by federal court because of sherman antitrust act which was used against unions rather than monopolies
who did the national labor union leave out
- chinese
- women
- african americans
what did the national labor union do
first major national labor federation in the United States and it primarily campaigned for the eight-hour workday and legislative reforms rather than using strikes
who did the knights of labor include/exclude
- included skilled and unskilled, men and women, black and white workers
- excluded chinese
what did knights of labor do
- wanted to unite workers, envisioned "one big union"
- started strikes
- campaigned for 8 hour work day
- fought for workers rights
who did the AFL (american federation of labor) exclude
- unskilled workers
- african americans
- women
- new immigrants
What did the American Federation of Labor do?
- led by samuel gompers
- focused on more simple issues like wages, hours, and workplace safety
who did the industrial workers of the world (IWW) include
- women
- african americans
- immigrants
- unskilled laborers
what did industrial workers of the world do
focused on inclusivity, abolition of capitalism, and uniting everyone
collective bargaining definition
group negotiation that employees use to push for changes such as higher pay, safer working conditions, or shorter work days
collective bargaining significance
allowed workers to negotiate as a group rather than individually, increased their ability to influence employer decisions
government land grants for the transcontinental railroad
government gave land to people so that they could construct the railroad
transcontinental railroad's impact on westward expansion and native americans
made true westward expansion possible but at the cost of nature and natives
rebates
rebates were secret discounts and cash refunds given by railroad companies to massive, favored shippers like John D. Rockefeller's Standard Oil
competitive practices used by businesses
trusts, pools, rebates, horizontal and vertical integration
old immigrants
- assimilated for quickly into american culture and often adopted english language/customs
- came primarily from northern and western europe (england, ireland, germany, scandinavia)
- generally more literate and arrived with more moeny/skills
new immigrants
- came primarily from southern and eastern europe
- frequently associated with radical ideas such as anarchism or communism
- often poorer, less literate, and settled in ethnic enclaves to preserve their culture
characteristics that old and new immigrants share
- often worked lowest paying, most dangerous jobs
- faced nativism and organized opposition (groups like know nothings and american protection association
- benefitted from political machines that offered aid (housing, jobs, legal help) in exchange for votes
ellis island
where immigrants arrived in the U.S. and where medical inspections took place as well as where interviews were conducted to let immigrants enter the U.S.
angel island
immigration station where Chinese immigrants arrived in large numbers during the California gold rush. Questioning and conditions at Angel Island were much harsher than Ellis Island
nativism
- movement where people favored people born in the United States over immigrants
- led to discriminatory laws and was caused by people fearing that immigrants would take local jobs from people native to the United States.
Know-Nothings
the American Party; secret organization that was anti-immigrant and anti-Catholic
American Protective Association
organization created by nativists that was anti catholic and campaigned for laws to restrict immigration
chinese exclusion act (1882)
- A federal law that banned immigration and denied citizenship to Chinese immigrants
- the first major federal law to target a specific group based on race
kearneyites
- led by Denis Kearney
- a group of Irish immigrants
- resented chinese competition and violently attacked them
chinese workers on the transcontinental railroad
- played a major role in building the railroad
- often worked under dangerous conditions and low pay
chinese immigrants and prejudice related to the gold rush
arrived in large numbers during the california gold rush and often worked menial jobs
rural to urban migration trends (1860-1920)
- cities rapidly expanded as people flocked to them
- increased due to industrialization which created new jobs for people in factories
- immigrants also moved to large cities
growth of major cities (new york, chicago, philadelphia, etc.)
- New York City was the busiest and fastest growing city in the country. It was a center for business, trade, and new ideas.
- chicago and Philadelphia had 2nd and 3rd largest population
- *shows that the population is growing
consumer culture and new goods/services
- price of goods decreased and workers wages increased
- department stores, telephones
- issue of waste disposal highlight consumer culture
new and improved tehnology
- the invention of elevators caused cities to begin building skyscrapers
- invention of trolley cars and subway trains made it easier for people to travel and allowed cities to expand and led to creation of suburbs
- electric lights
- feats of engineering like brooklyn bridge
growing gap between rich and poor
- gap between wealthy and poor was extreme
- wealthy lived in large, luxurious mansions
- poor families were packed into tenements where there was poor sanitation and crowded living conditions --> spread of disease
urban slums
severely overcrowded, unsanitary, and unsafe tenement districts that housed millions of poor laborers and immigrants in fast-growing industrial cities
dumbell tenements
- Cheap housing units that housed immigrants
- termed dumbbell tenements due to the design of the building, which looked like a dumbbell
Jacob Riis
- muckraker who was a photographer and journalist who took photos of immigrants living in tenement houses and unsanitary conditions
- exposed the poor conditions of the tenements in NYC
How the Other Half Lives (1890)
- book by John Riis that told the public about the lives of the immigrants and those who live in the tenements.
- very graphic and caused people to re-evaluate tenement houses
lack of urban planning in cities
- issues of waste disposal exposed lack of urban planning which led to disease
- overcrowding
political machine
- Organized networks that helped political parties stay in power by trading favors for votes
- led to widespread government corruption through the patronage system where government positions were handed out as rewards for political support
- benefitted immigrants
Boss Tweed
- William Tweed, head of Tammany Hall
- powerful democratic political machine
Tammany Hall
- political machine that aided immigrants in exchange for votes
- amassed over $200 million through brbes, fake leases, and embezzlement schemes
thomas nast
exposed corruption of boss tweed and tammany hall through political cartoons in the new york times
gold standard
A monetary system in which paper money and coins are equal to the value of a certain amount of gold
bimetallism
the use of both gold and silver as a basis for a national monetary system
sherman silver purchase act
- Law that required the government to purchase an additional 4.5 million ounces of silver bullion each month for use as currency
- caused concerns that the u. s. would abandon the gold standard
- passed in an effort to appease western mining interests and advocates of bimetalism
who supported the gold standard
conservatives, bankers, and republicans
who supported bimetalism
farmers, laborers, populists and democratic party
panic/depression of 1893 primary cause
over speculation and overbuilding in the railroad industry
j. p. morgans role in depression of 1893
gave money to the federal government to replenish treasury's gold supply
McKinley Tariff
Raised tariffs on many imported goods to protect American manufacturers from foreign competition.
tariff impacts on farmers during gilded age
- hurt farmers because it increased cost of equipment and stopped agricultural exports
- caused coxeys army which was an organized protest march on washington dc by unemployed workers
tariff impacts on industrialists during gilded age
greatly benefitted from them because it protected domestic industries from foreign competition
populist party (1892)
- 3rd party made of farmers and factory workers
- ultimately blames government and banks for their troubles
- believed that powerful corporations, banks, and railroad companies had too much control over the economy and government
- (the people's party)
populist party demands
- bimetallism
- government ownership of railroads
- direct election of U.S. senators
- graduated income tax
james weaver
- the Populist candidate for president in the election of 1892
- received over a million votes but lost because interests of big businesses triumphed
election of 1892
- populist = james weaver
- republican = Harrison
- democratic = cleveland
- cleveland wins
william jennings bryan
- Democratic candidate for 1896 election
- represented the "plowholders'
- supported bimetallism
- appealed to farmers, debtors, and many working-class voters.
William McKinley
- represented the "bondholders"
- Republican candidate who supported the gold standard and tariffs
- appealed to many industrialists, bankers, and business interests.
which candidate for the election of 1896 did the titans of industry support?
william mckinley
which populist ideas were absorbed by democrats
free silver and economic reform
did common people's or big business interests win the election of 1896
william mckinley won so big businesses
the new south
- henry w. grady suggested idea of new south
- South should move away from farming and instead embrace industrialization like the North to modernize the region and bring economic growth
- tobacco production and textile mills were created but led to child labor
- New South did not challenge racial inequality, African Americans and poor white people remained trapped in poverty
- new south ultimately failed
compromise of 1877
A secret deal that was made by congressional leaders to fix the disputed election of 1876; Rutherford B. Hayes was declared the winner of the election even though he had lost the popular vote in exchange for his promise to remove federal troops from the South; marks the end of Reconstruction era
sharecropping and crop liens
- farmers worked land owned by someone else in return for a small portion of the crops
- trapped african americans in cycles of debt
black codes
Laws denying most legal rights to newly freed slaves in the south
jim crow laws
- Limited rights of blacks
- ex: Literacy tests, grandfather clauses and poll taxes limited black voting rights
convict leasing system
- where the state government would rent out prisoners as unpaid labor to businesses, factories, plantations, or mines
- great source of profit for business owners and prisoners could be worked much harder and owners didn't have to worry about labor disputes
segregation in public facilities
Laws separated Black and white people in public spaces and African Americans generally received inferior facilities and services.
what did Homer Plessy do to challenge Louisiana's segregation law?
homer plessy who was 7/8 and 1/8 deliberately violated law by sitting in a whites only railroad car
supreme court's 7-1 ruling about plessy v. ferguson case
- ruled against plessy decided, that racial segregation was constitutional
- upheld Louisiana's racial segregation law and established the constitutional doctrine of "separate but equal"
separate but equal doctrine
the doctrine established in Plessy v. Ferguson that allowed segregation as long as facilities were supposedly equal
legitimization of jim crow laws during plessy v ferguson case
The ruling provided constitutional justification for segregation and helped Southern states expand discriminatory segregation laws
literacy tests with disenfranchisement laws
Tests designed to prevent African Americans from voting. often impossible or rigged and were extremely unfair from tests given to white people
poll taxes with disenfranchisement laws
purposefully meant to restrict ballot access for low-income citizens and racial minorities because they wouldn't have the money needed
grandfather clause
Laws that exempted people from voting restrictions if their ancestors had been eligible to vote before the Civil War. They were designed to protect many white voters while excluding Black voters.