Economic Developments: Laissez-Faire Politics and Economics of the Gilded Age Flashcards
Define Laissez-faire as an economic theory
It means that the government have little intervention in what businesses do and allow them to grow legally as much as possible
Define Social Darwinism
The theory that some people have biological differences which make them more able to adapt to the economy and become wealthy over other people
Which people in society believed in Social Darwinism the most?
Big business leaders
What was a disadvantage to big business leaders believing in Social Darwinism? Why?
They would be more likely not to help poorer people as they would think they were destined to be in that position.
What is another name for business trusts?
Corporations
What were cartels in business?
When certain businesses worked together to control the market and pressure the government in to passing certain legislation in the Cartels’ favour
What is interesting about the belief about if the economy of the Gilded Age was Laissez-faire or not?
It appeared to be Laissez-faire, but there was a large hold of big companies on politicians which influenced decisions they would make
How did Social Darwinism relate to the Laissez-faire economic theory?
It meant that the big businesses and the government would be more likely to keep their hands off helping small businesses as they would believe that they were destined to fail
How did the Laissez-faire economy help post-Civil War expansion?
Many wealthy businesses could expand to parts of the South and possibly also do something with the rice and tobacco fields in the South
How did the Laissez-faire idea help Frontier expansion?
It encouraged people to set up established economies in these new western areas even faster
Name a person who heavily supported the idea of Social Darwinism
William Sumner
Who supported William Sumners ideas?
Leading churchmen and also Andrew Carnegie and John Rockefeller
What was Laissez-Faire supposed to ensure?
Everyone had the equal right to be wealthy, but also the equal right to fail
What was the reality of laissez-faire with big businesses?
Big businesses would just buy up small companies or merge with potential rivals in order to have no competition
Name an Industry which did have some competition in it
Textiles Industry
Name a company which bought out all of its competiton and merged with potential rivals
Vanderbilt’s Rail Company
What did Rockefeller himself specifically say about wanting there to be no competition?
He said that he wanted it to only be big businesses in the Oil Industry and that all small businesses would have to die
Name a Movement which went against Laissez-Faire economics and when it was established
The Granger Movement, Created in 1867
What did the Granger Movement support?
Agriculture and Farmers
What was a limitation of the anti-Laissez faire movements?
Lots of the legislation which they proposed did not get passed
Give an example of a time when anti-Laissez faire movements failed to win against large businesses and the year this happened
In 1886 there was a Supreme Court ruling which ended in the favour of the railroad monopoly
What was the scale of the Granger Movement? By What year?
By 1885 it had gained 850,000 members
What is one likely reason that lots of anti-Laissez faire proposed pieces of legislation did not pass?
The monopolies bribed the government not to pass the legislation
What were Robber Barons?
People who became immenseley wealthy through ruthless business practices in the late 18th century in America
