large businesses resulting from economies of scale & lack of government regulations
horizontal integration
combining smaller companies within the same industry to form a larger company through legal buyouts or illegal practices
vertical integration
one company buys out all the factors of production from raw materials to finished product
still allowing competition in the marketplace
problems with consolidation
required large amounts of money leading to financial panics & bank failures, public resentment, & government response in the form of antitrust legislation
Sherman Antitrust Act of 1890
forbidding “restraint of trade” combination, ambiguous wording leading to pro-business Supreme Court interpretation
Factories and City Life
factories establish to reduce labor costs & maximize profits
women, children, and new immigrants hired
cities suffered from poverty, crime, disease, and lack of livable housing as a result
factories were dangerous and there was no insurance or compensation
majority if immigrants from Southern & Eastern Europe
misery in cities led to labor unions
purpose to improve treatment of workers
Knights of Labor was one of the first national labor unions, 1869
goals
8 hour workday
equal pay for equal work
child labor laws
safety and sanitary codes
federal income tax
wealthy & middle class improved while the poor suffered
majority of Southerners remained farmers
Jim Crow Laws
discriminatory laws attempting to give black their rights
Booker T. Washington
promoted economic independence to improve black lot
refused to press for immediate equal rights
Booker VS. W.E.B. Du Bois
attacked Washington's acceptance of racial segregation, arguing that this only encouraged whites to deny African Americans the right to vote and to undermine black pride and progress
Transcontinental Railroad
railroad construction paid by public
companies drove off buffalo ALMOST leading to extinction
causes conflict with Natives
Homestead Act was passed by the federal government to attract settlers
Gilded Age
era between Reconstruction & 1900
wealth built on poverty
political machines ran cities
workers had little protection from employer greed
Regulating Business and Government
imposed railwoad regulations
Women’s Sufferage
led by Susan B Anthony
bill introduced to Congress
American Suffrage Association fought for state suffrage amendments
Women gained right to vote with 19th Amendment in 1920 (50 years after male suffrage)
Post-Civil War Era:
Increased production in both industrial and agricultural fronts
Drop in prices due to greater supply
Farmers faced trouble due to fixed payments in long-term debts
Farmers supported increased money supply for easier payments and inflation
Banks opposed the plan, preferring gold-backed money supply
Farmers' plan called for the liberal use of silver coins (supported by western miners and midwestern/southern farmers)
Farmers' Alliances:
Cooperatives for farmers to buy machinery and sell crops as a group
allowing women's political activism
Grew into political party People's Party
1896 Populists backed Democratic candidate William Jennings Bryan
Bryan ran on platform of free silver, loosening control of northern banking interests
Republicans allied with big businesses, McKinley received huge contributions from large companies
Bryan lost election, Populist movement declined with improved economy
Before the Civil War
Most Americans earned their living through farming
No federal income tax until 16th Amendment in 1913
Tariff was a huge controversy
Tariff after Civil War
Tariffs dominated national politics
Industrialists demanded high tariffs to protect domestic industries
Farmers and laborers hurt by high tariffs
Democrats supported lower tariffs
Republicans advocated high protective tariffs
Theodore Roosevelt
Assistant Secretary of Navy in 1898 during Spanish-American War
Ordered U.S. Pacific Fleet to Philippines, then led volunteer regiment in Cuba
Expansionism & Imperialism
American businesses developed markets and production in Latin America, and gained political power in the region
Expansionism (business in regions) is supported by most Americans, imperialism (control of another country) more controversial
U.S. Interest in Hawaii
American involvement began in 1870s with American sugar producers trading with Hawaiians
Hawaii economy collapsed in 1890s due to U.S. tariffs and dependence on trade with U.S.
US annxed Hawaii
Cuban natives revolted against Spanish control, instigated by U.S. tampering with the Cuban economy
U.S. drove Spain out of Cuba and Philippines in the Spanish-American War
Senate voted to annex the Philippines by a close margin, but Filipino nationalists responded with a guerrilla war
The U.S. granted the Philippines independence in 1946