The GILDED Age Flashcards
Presidents of 1880s & 1890s
- presidents of the Gilded Age
- “forgetable presidents”
- supporters of big business
- take a back seat
The Credit Mobilier Scandal
Union Pacific Railroad requested $92 million but only used $50 million; remainder of $42 million was pocketed by Congressmen; helped trigger Panic of 1873
Panic of 1873
causes: Credit Mobilier Scandal & overproduction of war goods from Civil War
- lasted 5 years
- unemployment rose as high as 14%
- people were too focused on westward expansion and millionares
Railroads
Reasoning: people will want to move to places where there is economic oppurtunity
Leader: Cornelious Vanderbilt
Business: New York Central Railroad, Hudson Valley Railroad, Lakeshore & Michigan Southern Railroad
Steel
Reasoning: Key ingredient to manufacturing railraods, factories, and infrastructure
Leader: Andrew Carnegie
Business: Carnegie Steel/ U.S. Steel Company
Oil
Reasoning: Key ingredient in manufacturing railraods, factories, and infrastructure
Leader: John D. Rockefeller
Business: Standard Oil Company
Banking
Reasoing: With the Federal government struggling, private banks would be necessary to finance these industries
Leader: J.P. Morgan
Business: J.P. Morgan Chase & CO
Exodusters
African American farmers who fled North Carolina at the first passages of Jim Crow Legislation; move to Kansas and Indiana for economic oppurtunites; spark of Great Migration
John Sears
John Davidson Sears created a catalog that allowed those in rural areas along the railroad to acquire goods; became a millionare
Thomas Alva Edison
Innovator/Inventor with patents on: Electric Light Bulb, Phonograph, Motion picture camera
Cornelius Vanderbilt
Began working with Thomas Gibbons (Gibbons v. Odgen)
Small steamships –> ocean-liner steamships –> sold all his stock and invested in railroads
- Vanderbilt railroads ran through more than a dozen states from Massachusetts to Illinois
Baltimore Ohio Railroad Company
(B&O); next biggest railroad in America; worked closely with US government during Civil War
Great Railroad Strike of 1877
- Railroad workers across the country strike in search for better working conditions and better pay
- Hayes sent in federal troops to end strikes (fed gov sides with big business)
- In 1884, B&O negotiated with their workers and established one of the first pension plans in US employment history
The Story of the Gilded Age…
Business tycoons like Cornelius Vanderbilt would use ruthless business tactics to consolidate power in an industry to accumulate massive amounts of wealth, which would create jobs, infrastructure, and other benefits for America, while also limiting competition and often led to unfair/poor working conditions.
Laissez-Faire
Laissez-Faire gov policies led to wealth for business owners but poor conditions for workers
- Manipulated 14th amendment to aviod regulation by deeming corporations the status of “legal” persons
- Less government control
Social Darwinism
“survival of the fittest” though more influenced by classical economists than Darwin
-American Dream - “up by your bootstraps”
Rebate
rail barons granted secret kickbacks to powerful shippers for steady traffic