Philosophy of the Industrialists by 61Q2i5E


									                  Gilded Age
   A term coined by Mark Twain
   Refers to substantial growth in population in the
    United States and extravagant displays of wealth
    and excess of America's upper-class during the
    post-Civil and post-Reconstruction era, in the
    late 19th Century (1865-1901).
   An era of seemingly endless prosperity with
    excessive examples of corruption and poverty
   “The man in the moon held his nose when he
    passed over the U.S.”
    Factors of growth #1: Wealth of
          Natural Resources
   Timber from great lakes
   California Gold
   OH, WY, CO, PA = Coal
   OK, TX, CA, AK = Oil
   NV, CA, UK = Silver
   MI, MT, UT, AZ = Copper
   All funded by capital investments (JP Morgan,
    Andrew Carnegie, etc) back in East Coast cities
    Factors of Growth #2: Agricultural
   Homestead Act 1862 – Encouraged
    development of West
   Pacific Railway Act 1862: Gave 10 acres of
    land to RR for each mile of track laid
   Corn production increased 264%, Wheat
    up 252%, Cotton up 300%
   New fertilizers
   New machines: McCormick Reaper,
    barbed wire
     Factors of Growth #3: Capable
   Irish and Italian Immigrants come in
    record numbers
   By 1910 50% of America was immigrant
   Willing to work for cheap labor
Philosophy of the
                      Adam Smith
   Individual self-interest works
    to the benefit of all of society
   Increases efficiency, cheaper
    goods over the long run
   Government intervention
    should be avoided
       Absolute minimum of duties,
        tariffs, quotas
   Free markets are the solution
                                       Adam Smith 1723-1790
                Herbert Spencer
   English philosopher
   Survival of the fittest
   Bright and Able
    contribute the most,
    should be rewarded
   Poor, weak, handicapped
    demand more than they
    produce, should be
    allowed to die a natural
   Charities, handouts are
    well-intentioned but really
    destructive to society        Herbert Spencer 1820-1903
   Origins of Social
             John D. Rockefeller
   Growth of a large
    business is merely
    survival of the fittest
   “The American beauty
    rose can be produced in
    the splendor and
    fragrance which bring
    cheer…only by sacrificing
    the early buds…”
   Nature and God’s laws
    mean that monopolies
    are OK
                                John D. Rockefeller 1839-1937
               Andrew Carnegie
   Rich have social
    obligation to set an
    example of living
    modestly, use profits to
    establish trust funds that
    benefit the community
   Provide opportunity for
    the poor to better
                                 Andrew Carnegie 1835-1919
   Known as the “Gospel of
Corruption under Ulysses S. Grant
   Ulysses S. Grant took a check from NYC
    for $105k for “saving the Union” when he
    became president
   Boss Tweed Ring: Tammany Hall =
    political machine in control of NYC
   Kickbacks, bribery the only way to do
   “An honest senator was one who when
    bought, stayed bought”
   Credit Mobilier Scandal: Union Pacific RR
    earns dividends of 340% - gives stock to
   Whiskey Ring: Whiskey distillers bribe IRS
    to “go away” – Grants own sec in on it
   Belknap Scandal: Sec War took bribes to
    “cheat Indian reservations”
   RR: Stalled in the rain until people met
    their demands
                  Labor Unions
Knights of Labor                 American Federation of
 Eventually included              Labor
  women, blacks,                  Only skilled workers in
  professionals, laborers,         craft unions
  skilled workers, socialists,    Wanted higher wages,
  anarchists, farmers              shorter hours, improved
 Wanted to get rid of             conditions
  capitalism by creating          Public suspicious, but
  worker-owned businesses          found them less
 Would use violence               threatening than the anti-
                                   capitalist K of L
                         Key Figures
Knights of Labor:                       AF of L:
Terence V. Powderly                     Samuel Gompers
 K of L becomes more like a             Gompers is a socialist
  union, less like a fraternal           Founds AF of L in 1886, leads
  organization                            it until his death in 1924
 Growth of K of L to close to 1         Discriminated against blacks
  million members by 1886                 and women
 Disliked strikes                       Also supported Chinese
 Influenced by producerism, not          Exclusion Act
    socialism                            Supported political action,
   Supported Chinese Exclusion           generally w/Democrats
    Act                                  Wanted to partner
   Knights die out by 1900               w/business—saw unions as the
        Socialists, craft unionists,     labor component
         Haymarket Riot, unsuccessful    Supported collective
         strikes cause downfall           bargaining

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