The Economy

Question 1

In what ways was the Gilded age corrupt?
Give 3

What does the revisionist view state?

Answer 1

• MARK TWAIN - satirised the period as one of speculativeness and shameful corruption
• THE SPOILS SYSTEM - favoured patronage over meritocracy
• POLITICIANS of the period put themselves first

However, the REVISIONIST VIEW suggests that this was too harsh
- Accepts that there was corruption, but presidents did attempt to combat this

Question 2

What case study could be used to reflect the economic corruption of the time?
Explain

Answer 2

NEW YORK CUSTOMS HOUSE

• Controlled by a few senators and run by 1000 employees, given the job through patronage
• Imports were deliberately undervalued, meaning that when the mistake was discovered, the import became forfeit, half went to the head of customs house and the rest to the government, therefore making a lot of money

Question 3

What is a ROBBER BARON?

Answer 3

A ROBBER BARON is a ruthlessly powerful capitalist or industrialist who became incredibly wealthy through unethical means

Question 4

Give examples of 4 robber barons

Answer 4

JP Morgan
Vanderbilt
Carnegie
Rockefeller

Question 5

JP MORGAN

• What business was he involved in?
• What companies was he a crucial part of? Give 2
• What was his role in banking?
• What was he doing during the war?
• Explain ‘Morganisation’
• How much did he pay on average

Answer 5

JP MORGAN

• He was a financier, banker and art collector
• A crucial part of General Electric and the United States Steel Company
• He directed the banking coalition that ended the Panic of 1907
• During the war, he was buying and selling rifles to make profit
• MORGANISATION - creating a monopoly through the elimination of competition and maximising profits by slashing wages
• On average, he paid $1 per day

Question 6

VANDERBELT

• What business was he involved with?
• What important points in New York did he have built?
• How did exploit his influence?
• Deemed an _______ business man with no sense of ________ - the eras first robber baron

Answer 6

VANDERBELT

• Involved with shipping and railroads
• Built the Great Central Depot
• Exploited his control of communications to drive other businesses into difficult so he could buy them up
• Deemed an unscrupulous business man with no sense of morals - the eras first robber baron

Question 7

CARNEGIE
- What industry did he have control over and how?
- How did he approach competition? 
- How did he cut costs?
However.....?

Answer 7

• Monopolised the steel industry through huge influence and control
• Undercut competitors to buy them up
• Cost cutting through low pay
  HOWEVER….
  Then gave a lot of money to charity

Question 8

ROCKEFELLER

• What industry did he monopolise? What company did he begin?
• How did he use his influence?
• He owned the first ______ company

Answer 8

ROCKEFELLER

• Monopolised the Oil Industry and began Standard Oil Company
• Used his influence to destroy competition
• He owned the first multinational company

Question 9

What influence did robber barons have over politics?

Answer 9

Robber Barons controlled senators and politicians through bribery and campaign contributions
- Therefore no regulations were imposed, so the government remained laissez faire

Question 10

Why was there economic growth 1877-1890?

Give 7

Answer 10

• Supply of cheap workers (immigrants)
• Little disruption due to war or social unrest
• Speculators
• Laissez faire government
• Corporations and trusts
• Protective tariffs
• Patronage and corruption