USH Ch3.1

Chapter 3: The Gilded Age and the Progressive Era, 1870s-1920

Learning Objectives

  • Understand economic growth factors in the U.S. during this period.

  • Analyze the political, social, and economic impacts of growth on Americans.

  • Explore reform movements emerged in response to these changes.

  • Evaluate the success of reform movements during this era.

Timeline of Key Events

  • Sep 1873: The Panic of 1873.

  • May 1893: The Panic of 1893.

  • Jun 1906: The Pure Food and Drug Act.

  • Sep 1901: Theodore Roosevelt becomes president.

  • Jul 1890: The Sherman Anti-Trust Act.

  • Nov 1912: Election of Woodrow Wilson as president.

  • Apr 1913: Ratification of the 17th Amendment (direct election of Senators).

  • Aug 1920: U.S. women win the right to vote.

  • Oct 1907: The Panic of 1907.

  • Feb 1913: Ratification of the 16th Amendment (federal income tax).

  • Dec 1913: Federal Reserve Act.

Historical Context: Post-Civil War America

  • Rapid recovery from the Civil War (1860s) led to significant economic growth.

  • By the end of the 19th century, the U.S. surpassed industrial nations like Germany and Britain.

Characteristics of Economic Growth

  • Strengthened capitalism allowed individuals to amass considerable wealth.

  • Mass urbanization resulted in poor living and working conditions for many.

  • Debate on the need for government regulation of business practices surfaced.

  • The Progressive Movement emerged to challenge unregulated capitalism, advocating for societal changes.

Political Changes

  • Limited presidential power and reliance on Congress for economic management.

  • President powers were expanded through the leadership of figures like Roosevelt and Wilson.

  • States retained significant authority, although the federal government began to adopt more active economic roles.

Factors Contributing to Economic Development

  • Civil War's Impact: Stimulated demand for goods, leading to mass production and financial growth.

  • Population Growth: Increased labor supply due to a declining death rate and immigration.

    • 1860: 11.2 million; 1900: 29 million in workforce.

  • Land Availability: Homestead Act of 1862 provided opportunities for settlers and contributed to agriculture.

  • Railroad Expansion: Facilitated the transport of raw materials and distribution of goods, linking the nation.

    • Rail transport costs decreased, promoting commerce significantly.

  • Access to Raw Materials: Abundant natural resources fueled industrialization, such as coal and iron.

  • Technological Innovations: Led by innovators like Carnegie (steel) and Edison (electricity), advancing competitive production methods.

  • Capital Availability: Development of stock markets and banking systems funded industrial expansion.

Major Economic Events

  • Panic of 1873: Bank failures resulting from risky railroad investments; led to high unemployment.

  • Panic of 1893: Severe economic depression caused by overexpansion and speculation; unemployment soared to 20%.

  • Panic of 1907: Stock market crash triggered by collapses in investment trusts, leading to a need for banking reform.

Labor and Social Conditions

  • Unregulated capitalism resulted in workers experiencing low wages, long hours, and poor working conditions.

  • Labor unions struggled against poor conditions; early organizations like the Knights of Labor achieved some successes but faced brutal employer retaliation.

  • Robber Barons: Powerful industrialists wielded significant economic and political influence, often disregarding workers' rights.

Urbanization and Living Conditions

  • Growth of Cities: Due to industrialization, many urban areas became overcrowded.

    • Chicago's population rose from 300,000 in 1870 to over 1.5 million by 1900.

  • Horrendous Living Conditions: Poor sanitation, overcrowding in tenements leading to health crises like cholera.

    • Housing often lacked basic needs such as clean water and proper sewage systems.

The Progressive Movement and Reforms

  • Reform movements gained popularity in response to economic inequities and poor conditions.

  • Focused on regulating industry, workers' rights, women's suffrage, food safety, and more.

  • Resulted in key legislative changes, such as the 17th and 19th Amendments, showcasing shifts in societal values and governance.