6.10-6.14+Gilded+Age-+Government,+Politics,+and+Reforms

Role of Government in the Gilded Age

Overview of Government's Approach

  • Governments during the Gilded Age are characterized as "do-little" in terms of regulation.

  • Influential ideas of the time:

    • Laissez-faire economics: Strong opposition to government regulation of businesses.

    • Social Darwinism: Idea that economic competition is natural and should not be interfered with by government.

  • Economic growth was thought to be maximized without government intervention, even during downturns.

  • Federal courts supported minimal government regulation of businesses, which limited the effectiveness of regulatory laws.

Government Actions

  • The government played a limited but significant role in promoting economic growth:

    • Land Grants to Railroads:

      • Federal government provided over 170 million acres of land to railroad companies through loans and grants.

      • Encouraged rapid settlement and development of these lands.

      • Led to poor construction practices and corruption.

        • Example: Scandals involving construction companies like Crédit Mobilier.

    • Interstate Commerce Act (1887):

      • Established to regulate railroad rates and practices.

      • Created the Interstate Commerce Commission (ICC) to investigate unfair practices but was more favorable to railroads.

      • Initially, the ICC struggled in courts and provided limited benefits to farmers.

    • Antitrust Movement:

      • Rise of corporate trusts like Standard Oil heightened scrutiny among the middle class and elite.

      • Sherman Antitrust Act (1890) established federal prohibition against trusts but was vaguely worded and poorly enforced.

      • The law was mostly ineffective until strengthened in the Progressive Era.

    • Foreign Policy:

      • Government foreign actions were aimed at promoting economic interests, such as the purchase of Alaska and the annexation of Hawaii.

Political Issues: Civil Service, Currency, and Tariffs

  • Major political focus during this period revolved around patronage, monetary policy, and tariffs.

    • Civil Service Reform:

      • Response to corruption highlighted by the assassination of President Garfield.

      • Pendleton Act (1881) created the Civil Service Commission for competitive hiring based on merit, limiting political patronage.

    • Money Question:

      • Debate over the expansion of the money supply influenced by interest groups:

        • Debtors and farmers advocated for "soft money" to ease borrowing and debt repayment.

        • Bankers and established businesses favored "hard money" backed by gold to ensure stable currency value.

      • Resulted in conflicting policies with Congress passing measures like the Specie Resumption Act.

    • Greenback Party: Advocated for the continued use of unbacked paper money and saw initial support during elections before diminishing.

    • Demands for Silver Money:

      • Increasing demand for silver coins led to healthy debates around the Bland-Allison Act, allowing limited silver coinage.

    • Tariff Issues:

      • Raised during and after the Civil War to support industries but burdened consumers and farmers due to rising prices.

      • Discussion evolved into whether tariffs were beneficial or detrimental to agricultural interests.

Conclusion

  • Growing public discontent over issues like corruption, money supply, tariffs, and excessive corporate power by the late 1880s would lay the groundwork for future political movements, including the Populist Party.

Role of Government in the Gilded Age

Overview of Government's Approach

  • Characterized as "do-little" in regulation.

  • Influential ideas:

    • Laissez-faire economics: Opposition to government regulation of businesses.

    • Social Darwinism: Belief that economic competition is natural and should not be interfered with.

    • Minimal government intervention maximized economic growth.

  • Federal courts supported limited regulation, impacting regulatory law effectiveness.

Government Actions

  • Limited but significant role in promoting economic growth:

    Land Grants to Railroads:

    • Over 170 million acres granted to railroads, leading to rapid settlement but also corruption (e.g., Crédit Mobilier).

    Interstate Commerce Act (1887):

    • Regulated railroad rates, established the ICC (initially favoring railroads and struggled in courts).

    Antitrust Movement:

    • Rise of trusts like Standard Oil led to scrutiny, resulting in the Sherman Antitrust Act (poorly enforced).

Foreign Policy:

  • Aimed at promoting economic interests (e.g., purchase of Alaska, annexation of Hawaii).

Political Issues: Civil Service, Currency, and Tariffs

  • Major political focus on patronage, monetary policy, and tariffs:

    • Civil Service Reform:

      • Pendleton Act (1881) limited patronage via competitive hiring.

    • Money Question:

      • Debtors/farmers vs. bankers on money supply (soft money vs. hard money).

      • Resulted in conflicting policies (e.g., Specie Resumption Act, Greenback Party support).

    • Demands for Silver Money:

      • Bland-Allison Act allowed limited silver coinage.

    • Tariff Issues:

      • Raised to support industries but burdened consumers; debate on their effect on agriculture.

Conclusion

  • Public discontent over corruption, money supply, tariffs, and corporate power by the late 1880s set the stage for future political movements like the Populist Party.