Politics of the Age, Imperialism, and Economic Policy (Lecture Notes)

Party Coalitions and Campaign Climate

• The two parties were described as evenly split, which led to heated campaigns. Traditionally, Republicans dominated the North and the Midwest, while Democrats dominated the South and the West/Southwest; both parties consisted of multiple coalitions. This setup created broad, diverse platforms with wide-ranging interests.
• Emphasis on turnout and transportation logistics in campaigns was noted (contextual background rather than a core policy point).

Civil Service Reform (CSR)

• CSR was a major plank for both parties because government corruption, particularly among customs officials and, to a lesser extent, the post office, was widespread in the late 19th century.
• How CSR presented itself in platforms: both Democrats and Republicans supported CSR; voters believed reform was needed (estimates cited: about 86–87% of Americans supported CSR).
• The mechanics of corruption described: political patrons would reward supporters with government jobs, often in the Custom House, enabling graft and pocketing opportunities.
• The point being argued: CSR was a common, bipartisan issue driven by public demand, even if practical reforms were uncertain after elections.

Tariffs and Economic Policy

• Democrats advocated lower tariffs; Republicans advocated higher tariffs.
• Why tariffs? Tariffs function as a tax on imports, raising government revenue and protecting domestic industry/jobs.
• Democratic rationale for lower tariffs: reduce prices of imported goods for consumers, especially benefiting those lower in the economic pyramid by making imports cheaper than some domestic goods.
• Republican rationale for high tariffs: revenue generation and protection of American businesses and jobs from overseas competition.
• Contemporary echoes: tariffs are a continuing issue, with debates about inflationary effects and price impacts on consumers/releases of government revenue.
• Numerical reference: a contemporary claim cited about tariff-related revenue under discussion: 3 imes 10^{11} (i.e., about $300 billion) in tariffs in the first six months of a given period.
• Illustrative discussion: tax-on-imports impact on price levels and consumer wallets; the debate about what tariffs do to labor and industry in different regions.

Economic Position: Regulation vs. Laissez-Faire

• Democrats advocated for some government regulation in business (notably railroads) to prevent abuses and to ensure fair access and pricing for farmers and small producers.
• The lecture contrasted this with laissez-faire ideals, which were presented as less regulatory; however, the lecturer acknowledged that some arguments labeled as laissez-faire run contrary to strict laissez-faire in practice when railroad regulation is involved.
• A farmer/producer example was used to illustrate how pricing and access work in a market with varied order sizes (truckload vs. smaller orders) and the perceived fairness of the pricing system under regulation vs. laissez-faire.
• Core distinction: Democrats sought targeted regulation (e.g., railroads) to balance power between large producers and smaller farmers; Republicans leaned toward minimal government interference in business, i.e., laissez-faire.

Inflationary Economics vs. Sound Money (Monetary Policy)

• Democrats favored inflationary economics, arguing for more currency in circulation to assist debtors and those with lower incomes.
• Gold standard and sound money: the discussion used a simplified gold-standard illustration to show how currency supply is tied to gold reserves. If currency in circulation expands beyond gold backing, the value of money falls, increasing prices (inflation).
• Formalized thought from the lecture: the gold standard implied a fixed quantity of gold backing the currency; expanding money supply beyond that backing would devalue currency and raise prices, harming those who lack currency to absorb higher costs.
• Example narrative from the lecture:
  • If all gold in the U.S. is limited to a fixed amount, say equivalent to a base currency, expanding currency in circulation would push prices higher, benefiting some borrowers but harming others with fixed incomes.
  • A concrete milk-price analogy was used to illustrate inflationary impact: if prices rise from, say, $2 per gallon to $4 per gallon due to inflationary money supply, those with lower incomes would struggle even if nominal wages rose.
• Summary of positions: Democrats favored expanding the money supply (inflationary policy) to stimulate growth and relieve debtors; Republicans favored sound money (gold-backed, limited money supply) to maintain price stability and investor confidence.
• Historical tie-in: this debate reflects the late 19th-century tension between currency expansion (to address debtors and economic growth) and the gold standard (to preserve price stability and international credibility).

Imperialism and Foreign Policy

• Definition: Imperialism is the acquisition and exploitation of one country by another for political and/or economic gain.
• The era’s strategic rationale: to gain world status and to promote national strength through expanded markets and resources as part of the Industrial Revolution.
• Exports as a driver of imperial aims: exports rose from 4\times 10^8 dollars in 1865 to 1.6\times 10^9 dollars by the late 19th century, a fourfold increase over roughly 25 years, demonstrating industrial capacity and the need for foreign markets.
• Tariffs and foreign markets: tariffs provided revenue and incentives to export, pushing expansion abroad to create spaces for production, markets, and resources.
• British and French precedents: longstanding imperial powers (Britain and France) had colonies worldwide; the phrase that “the sun never sets on the British Empire” reflects the global reach of imperialism.
• The moral/ideological justifications tied to imperialism:
  • White Man’s Burden: the idea that it was a civilizing mission to bring Western ways to other peoples.
  • Social Darwinism: the justification that civilizational progress required Western nations to dominate others.
  • Christian missionary work and religious reform were often cited as part of the justification.
  • A cautionary reminder that these justifications were used to rationalize power dynamics rather than purely altruistic motives.
• Senator John Morgan (1882) on imperialism: in a congressional speech, he argued that the home market could not absorb all production, so the U.S. must export excess production or export those producing it abroad—an explicit call for imperial expansion to solve domestic overproduction.
• Alfred Thayer Mahan and naval strategy (Mahanism): naval power as a driver of empire; three core tenets:
  • Acquire new colonies
  • Increase the size of the navy and merchant shipping
  • Establish fueling/coaling stations (logistical bases) to project power across oceans
• Theodore Roosevelt’s and Mahan’s influence: Roosevelt amplified and expanded Mahan’s framework with additional foreign policy goals; the era’s policy agenda included strong naval power and overseas presence as a tool of national strategy.

Key Figures, Institutions, and Concepts to Know

• President Chester A. Arthur: described as a “dandy,” but a proponent of imperial and naval expansion; pushed for modernization and expansion of the Navy under his administration.
• Alfred Mahan: naval strategist who popularized the idea that sea power was essential to national greatness; introduced the concept of “Mahanism” (acquire colonies, build navy and merchant marine, fuel stations).
• Theodore Roosevelt: ally of Mahan; expanded foreign policy goals beyond the initial Mahan framework; later built a robust set of foreign policy strategies for America.
• JP Morgan: financier who played a role in stabilizing the economy during financial stress (late 19th century recession) through banking intervention and liquidity support; tied to the “gold strikes” narrative and stabilization efforts in 1895–1896.
• Dole and pineapple industry: Hawaii’s strategic value as a market and resource base; pineapple production and the Dole family noted as a symbol of American economic interests in the Pacific.
• Alaska (Seward’s Folly): the Alaska purchase connected to imperial ambitions and strategic expansion; the lecture referenced the purchase price (historically $7.2 million; the lecturer cited $15 million in a point of discussion).
• Key places mentioned for imperial expansion: Hawaii, Guam, the Philippines, and broader Pacific/Asia corridor (toward Japan and China).

Pacific Expansion: The Path to a Global Trade Network

• The strategic objective of securing stepping-stone bases to reach Asia (especially Japan and China) for trade and resources.
• The logic of control: establishing coaling stations and routes to facilitate continuous export of American goods and the import of resources.
• The role of private interests (e.g., the Dole pineapple business) in shaping territorial and economic strategy.
• The complexities and conflicts in Hawaii: tension between native sovereignty (the Hawaiian queen and local governance) and American expansionist interests; a case study in imperial practice.

Social, Ethical, and Philosophical Implications

• Imperialism through “civilizing” narratives vs. the realities of domination and resource extraction.
• The tension between Manifest Destiny and the rights/sovereignty of indigenous peoples in newly acquired territories.
• The linkage between economic growth, national competition, and ethical considerations around conquest and exploitation.
• The long-run public policy questions about economic regulation, industrial growth, and the appropriate role of government in balancing domestic welfare with international ambitions.

Chronology and Economic Milestones Highlighted in the Lecture

• 1865: Exports approximately 4\times 10^8 dollars (post-C Civil War baseline for industrial expansion).
• 25-year window later: exports rise to approximately 1.6\times 10^9 dollars (roughly a fourfold increase).
• 1882: Senator John Morgan’s congressional remarks emphasize exporting excess production as a solution to domestic market limits; frames imperial expansion as a national economic strategy.
• 1895–1896: Financial stabilization events linked to large gold strikes worldwide (informal reference to JP Morgan and bailout-like interventions) contributing to a return to growth as the 20th century approached.
• Late 19th century: Growing debate over tariffs, CSR, and monetary policy as part of a broader reform agenda.
• Hawaii, Guam, Philippines, Alaska (Seward’s Folly): key territorial targets in the imperial expansion narrative; Alaska purchase historically costs around $7.2 million (lecture cites $15 million in discussion).

Essay Prep: What to Explain on Exams

• Explain why civil service reform was a bipartisan concern and how it reflected public distrust of government corruption.
• Compare Democratic and Republican positions on tariffs, including who benefits and who bears costs under each policy; discuss the short- and long-term economic impacts.
• Describe the debate between inflationary monetary policy and the gold standard; explain how changes in the money supply affect price levels and everyday goods, using the milk example or similar as a heuristic.
• Define imperialism and articulate the three-pronged Mahanian program (acquire colonies, expand navy and merchant fleet, establish fueling stations), then connect to Theodore Roosevelt’s later foreign policy goals.
• Discuss the moral and practical justifications for imperialism (White Man’s Burden, Social Darwinism, Christian missions) and compare them to the economic incentives described in John Morgan’s congressional speech.
• Outline the strategic logic of Pacific expansion (Hawaii, the Philippines, Guam) and the role of private interests (e.g., pineapple industry) in shaping imperial policy.
• Reflect on the ethical implications of imperialism, including sovereignty and humanitarian concerns, in light of late-19th-century rhetoric vs. today’s perspectives.

Connections to Foundational Principles and Real-World Relevance

• Concepts of federalism and the proper scope of government intervention in markets (CSR, railroad regulation, monetary policy) connect to ongoing debates about regulation vs. deregulation.
• Tariffs as a tool for revenue and protection connect to debates about trade policy in the modern era and their domestic impact on workers, consumers, and industries.
• Imperialism-related ideas tie into long-standing discussions about national interest, global power dynamics, and the ethics of interventionism—topics still debated in contemporary foreign policy.
• The era’s economic growth, exports, and the role of finance (e.g., JP Morgan’s involvement) illustrate how finance, industry, and government policy interlock to shape macroeconomic outcomes.

Quick Reference to Key Formulas and Numbers

• Exports growth: from 4\times 10^8 to 1.6\times 10^9 over ~25 years → growth factor ≈ 4.
• Tariff revenue (illustrative): \$3\times 10^{11} in six months (as cited in the lecture).
• Money supply and price level (conceptual relation): if money in circulation M doubles while gold backing G remains constant, price level P tends to rise; a simplified relation: P \propto \frac{M}{G} (holding other factors constant).
• Historical cost note: Alaska purchase is commonly cited as 7.2\text{ million} dollars (lecturer cited 15\text{ million} in discussion; historically $7.2M).
• Population and regional distribution (as described): Republicans → North & Midwest; Democrats → South & West/Southwest (coalitions within each party).

End-of-Lecture Prompt (for Wednesday)

• Be prepared to provide a detailed accounting and analysis of the outline entitled "Politics of the Age, the Recovering Class" in the same format as the Industrial Revolution outline: for each section, explain what happened, why it happened, and what the result was.
• A follow-up discussion will cover imperialism in more depth, including additional foreign policy goals associated with Roosevelt and further exploration of Mahanian strategy.