Economy Flashcards
How did industrial growth impact the U.S. economy between 1890 and 1920?
Iron production rose from 920,000 tons (1860) to 10.3 million tons (1900).
• Pittsburgh became the center of the iron industry.
• Modern oil production began in 1901 in Spindletop, Texas.
• Oklahoma was the leading oil producer by 1907 (25% of U.S. production).
What role did trusts and monopolies play in the U.S. economy?
By 1904, the largest 4% of U.S. companies controlled 57% of total industry.
• Dupont controlled 85% of the nation’s electric power.
• U.S. Steel, formed in 1901 by J.P. Morgan, became the world’s first billion-dollar corporation.
What caused the Depression of 1893?
A stock market crash following the Reading Railroad bankruptcy.
• Industrial Black Friday (May 1893) caused 24 businesses to fail daily.
• Over 15,000 companies closed and 600 banks failed.
• Unemployment peaked at 43% in Michigan and 35% in New York.
How did President Cleveland respond to the Depression of 1893?
He believed in limited federal government intervention.
• He repealed the Silver Purchase Act (1893) to restore business confidence.
• His inaction alienated many Americans, contributing to the rise of Populism and Progressivism.
How did agricultural discontent contribute to political change?
Farmers in the South and West suffered from falling crop prices and high loan interest rates.
• Farmers’ Alliances formed to unite rural communities.
• This led to the Populist Party and Democratic support in the 1896 election.
What was the role of labor unions in the early 1900s?
The American Federation of Labor (AFL) (1885) represented workers in collective bargaining.
• By 1886, there were 1,400 strikes involving 500,000 workers.
• Employers used strikebreakers and blacklists to suppress union activity.
What was the Pittsburgh steelworkers’ strike (1892)?
Workers at Carnegie’s Homestead Steelworks protested against wage cuts.
• The company hired private detectives and militia to suppress the strike.
• After 5 months without wages, the strike collapsed, weakening labor unions.
What was the Pullman Strike (1894)?
The first national railway strike in U.S. history.
• Pullman workers struck over wage cuts but unchanged housing rents.
• The American Railway Union (ARU) refused to handle trains carrying Pullman cars.
• President Cleveland sent in troops, leading to violent clashes and civilian deaths.
• The Omnibus Indictment Act (1894) legalized the banning of strikes until the 1930s.
How did government suppression of strikes impact politics?
Many workers saw the federal government as siding with big business.
• This fueled support for radical labor movements and the Populist Party.
