The Gilded Age

The Gilded Age and the Birth of Modern America

  • Period: 1865-1900

Unit Overview

  • Topics Covered:

    • Industrialization

    • Rise of Big Business

    • Urbanization

    • Immigration

    • Corruption in Politics

Introduction to the Gilded Age

  • Definition: Gilded = covered thinly with gold

  • Coined by Mark Twain

    • Indicates a period with significant problems hidden by economic growth

The Rise of Industry

  • Essential Question (EQ): What factors led to industrialization and what impact did it have on the economy?

  • America in a "second industrial revolution"

    • Emergence as an economic powerhouse

Factors of Industrialization

  1. Natural Resources

    • Key resources: timber, coal, iron, copper

    • Location: The West

    • Discovery of petroleum for kerosene

    • Edwin Drake: First to drill for oil using a steam engine (1859)

  2. Large Workforce

    • Population tripled, creating a robust workforce and demand for goods

    • Factor: Immigration contributed to population increase

  3. Free Enterprise (Capitalism)

    • Individuals predominantly own businesses

    • Rise of entrepreneurs

    • Rags to riches mentality; popularized by Horatio Alger’s Ragged Dick

  4. Government Support

    • Protective tariffs: tax imports to protect American industry

    • Laissez-faire policies allowed businesses to operate without government interference (hands-off approach)

Innovations

  • Government Protection of Patents

    • Patents grant individuals exclusive rights to develop and sell inventions

  • Key Inventions:

    • Alexander Graham Bell: Telephone (1876)

    • Thomas Edison: Light bulb, over 1000 inventions, founded GE

    • George Westinghouse: Technologies for long-distance electricity transmission

    • Bessemer Process: Efficient, cheaper method to create stronger steel, essential for infrastructure (skyscrapers, bridges)

Development of the Railroad

  • Time Zones created in 1884 for scheduling

  • Railroads enabled rapid and cost-effective goods transport, boosting mass production

The Rise of Big Business

  • EQ: What practices allowed for the development of big business and what impact did these businesses have on the economy?

Changes in Business Structure

  • Pre-Civil War: Most businesses were small, family-owned, local

  • Post-Industrialization: Emergence of corporations (shared ownership reduces risk)

Influence of Big Business

  • Changes included monopolies and trusts:

    • Monopolies: Single company controls an entire product market, can set prices

    • Trusts: Merger along businesses where control is centralized yet ownership remains combined

  • Result: Small businesses often driven out

Notable Figures in Big Business

  • J.P. Morgan: Influential banker; controlled half of the RR mileage by 1900

  • Cornelius Vanderbilt: Transitioned from steamships to railroads; created a monopoly

  • John D. Rockefeller: Standard Oil Company founder; controlled 90% of oil market, utilized cut-throat tactics for competition

  • Andrew Carnegie: Steel industry leader, practiced vertical integration, integrating all parts of production

Perspectives on Business Leaders

  • Robber Barons: Viewpoint that these business magnates harmed consumers and exploited workers

  • Captains of Industry: Positive view, seeing contributions to the economy and philanthropy

Philanthropy and Social Responsibility

  • Gospel of Wealth: Carnegie's principle that wealth was to be used for the greater good, encouraging the establishment of libraries, parks, and educational institutions

Social Issues and Labor Movement

  • Working conditions:

    • Unsafe factories, long hours, poor wages

    • Child labor prevalent, with 1 in 5 children working by 1901

  • Socialism Movement: Advocated for public control of property and income; influenced labor activists

  • Formation of labor unions:

    • Knights of Labor, American Federation of Labor (AFL), Industrial Workers of the World (IWW) sought to protect workers' rights

Strikes and Labor Tactics

  • Major Strikes:

    • Great Railroad Strike (1877)

    • Haymarket Square Riot (1886)

    • Homestead Strike (1892)

    • Pullman Strike (1894)

  • Business Tactics against unions: yellow-dog contracts, lockouts, blacklists to suppress union organization.

Immigration and Urbanization

  • EQ: Why did immigrants come to the U.S., challenges faced, and their influence on cities?

  • Old Immigration: Predominantly from Northern/Western Europe

  • New Immigration: Post-1870, from Southern/Eastern Europe; often faced prejudice and settled in urban areas with higher poverty

Push and Pull Factors of Immigration

  • Push Factors: Religious persecution, economic troubles, and lack of jobs

  • Pull Factors: Political/religious freedom, job opportunities, family connections

  • Difficult voyages, often in steerage classes on ships, led to overcrowded and unsanitary conditions

Processing Stations and Ethnic Neighborhoods

  • Ellis Island: Immigration processing for European immigrants; over 12 million processed between 1892-1954

  • Angel Island: Processing station for Asian immigrants with stricter conditions

  • Formation of ethnic neighborhoods (e.g., Little Italy) to retain cultural ties

Urbanization

  • Explosive growth in major U.S. cities from 1860-1900, driven by job opportunities

  • Innovations like skyscrapers and mass transit facilitated urban expansion

  • Growth of tenements highlighted urban issues, including sanitation and health problems

Political Corruption

  • Emergence of political machines in growing cities to control local politics; often provided services to the poor to gain votes

  • Notorious figures (e.g., Boss Tweed) exemplified corruption and mismanagement of public funds

  • Reform movements led to the Pendleton Civil Service Act which aimed to curb corruption in government hiring

Conclusion

  • The Gilded Age marked a transformative period in American history, driving industrial growth, urbanization, and significant social challenges alongside growing corruption in politics and the economy.

The Gilded Age and the Birth of Modern America

Period: 1865-1900

Topics Covered:
  • Industrialization

  • Rise of Big Business

  • Urbanization

  • Immigration

  • Corruption in Politics

Introduction to the Gilded Age
  • Definition: Gilded = thinly covered with gold, indicates hidden problems during economic growth (coined by Mark Twain).

The Rise of Industry
  • Essential Question: What factors led to industrialization?

  • Industrialization as America’s second industrial revolution, marking the emergence as an economic powerhouse.

  • Factors:

    • Natural resources (timber, coal, iron, copper, petroleum)

    • Large workforce due to population growth and immigration

    • Free enterprise and government support (protective tariffs, laissez-faire policies)

    • Innovations (patents, key inventions like telephone, light bulb, railroads)

The Rise of Big Business
  • Essential Question: How did big businesses develop?

  • Shift from small family-owned businesses to corporations and monopolies/trusts, pushing out small businesses.

  • Notable Figures: J.P. Morgan, Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie.

  • Perspectives: Robber Barons vs. Captains of Industry.

  • Philanthropy encouraged by Carnegie’s Gospel of Wealth.

Social Issues and Labor Movement
  • Poor working conditions, child labor, rise of socialism.

  • Formation of labor unions (Knights of Labor, AFL, IWW) and significant strikes (e.g., Pullman Strike).

Immigration and Urbanization
  • Essential Question: Why did immigrants come, and how did they impact cities?

  • Shift from Old to New Immigration with push factors (persecution, economic troubles) and pull factors (freedom, jobs).

  • Processing stations: Ellis Island (European immigrants) and Angel Island (Asian immigrants), leading to ethnic neighborhoods.

  • Urbanization driven by job opportunities, innovations leading to poor living conditions (tenements).

Political Corruption
  • Rise of political machines exemplified by figures like Boss Tweed.

  • Reform movements led to acts aimed at reducing corruption.

Conclusion
  • The Gilded Age was marked by transformative industrial growth, urban challenges, and political corruption.