Capital v. Labor Complete the Industrialist Poster
Slide 3
Laissez Faire Economics Leave it alone Gov t should stay out of
business Businesses benefit = society benefits
Slide 4
Social Darwinism (Herbert Spencer) Charles Darwin s theory of
evolution applied to humans/society Only the strong survive
Slide 5
Andrew Carnegie Steel Gospel of wealth use wealth to help
society "Millionaires are the bees that make the most honey and
contribute most to the hive even after they have gorged themselves
full. --Andrew Carnegie *Entrepreneur A person who starts a
business
Slide 6
Vertical Consolidation = gain control of all phases of product
development Andrew Carnegie (cont d)
Slide 7
John D. Rockefeller Standard Oil Co. Horizontal Consolidation =
creation of 1 giant business from buying many smaller ones
Slide 8
Monopolies, Cartels, and Trusts Monopoly = the sole supplier of
a product with no substitute Cartel = secret associations of
businesses making the same product Trust = several businesses run
by a board of trustees
Slide 9
Captains of Industry or Robber Barons? Captain of Industry
Positive view Made U.S. great! Improvements helped us all
Philanthropist = charitable person Robber Baron Negative view
Wealth ONLY concern Unfairly used power to cut our competition
Slide 10
Socialism a theory or system of social organization that
advocates the vesting of the ownership and control of the means of
production and distribution, of capital, land, etc., in the
community as a whole. -Webster s dictionary Founded by Karl Marx
and German Philosopher Why would people be interested in socialism,
during this time?
Slide 11
Early Labor Unions Initially - to help members in bad times
Soon -means to gain better working conditions Collective bargaining
union negotiates with employers Yellow dog contracts - signed by
employees, promise to never join a union
Slide 12
Knights of Labor 1869 Goal to organize ALL workers into 1 union
Recruited women and Afr. Am.s Concerns: Equal pay for equal work 8
hour day End child labor
Slide 13
The American Federation of Labor (AFL) 1886 Samuel Gompers Goal
- organize ONLY skilled workers In practice opposed women and Afr.
Ams. Advocated closed shop Concerns Wages/Hours Working
conditions
Slide 14
Anarchy a theory that regards the absence of all direct or
coercive government as a political ideal and that proposes the
cooperative and voluntary association of individuals and groups as
the principal mode of organized society. - Webster s Dictionary Why
would people be in favor of anarchy, during this time?
Slide 15
Slide 16
Slide 17
Two Different Worlds 1 extravagant lifestyles The wealthy lived
extravagant lifestyles and considered themselves elitists. caste
system The common people resented their snobbish attitudes and
wealth. There was a caste system in the U.S. 1861---------3
millionaires----------1900--------3,800 1900, 90% of wealth,
controlled by 10% of population.
Slide 18
Political Machine Organized group that controls a citys
political party Give services to voters, businesses for political,
financial support After Civil War, machines gain control of major
cities Machine organization: precinct captains, ward bosses, city
boss The Emergence of Political Machines
Slide 19
The Role of the Political Boss May serve as mayor he: controls
city jobs, business licenses influences courts, municipal agencies
arranges building projects, community services Bosses paid by
businesses, get voters loyalty, extend influence Immigrants and the
Machine Many captains, bosses 1 st or 2 nd generation Americans
Machines help immigrants with naturalization, jobs, housing
Election Fraud and Graft Machines use electoral fraud to win
elections GraftGraftillegal use of political influence for personal
gain Machines take kickbacks, bribes to allow legal, illegal
activities
Slide 20
Corrupt political leader put New York City in debt Political
boss Political boss 1851 elected to city council 1852 served in
Congress Kept Democratic Party in power in NYC called Tammany Hall
Formed the Tweed Ring Bought votes, encouraged corruption,
controlled NYC politics
Slide 21
kickbacks Received large fees for interests (*kickbacks) from
the Erie Railroad Tweed Ring milked the city with false leases,
padded bills, false vouchers, unnecessary repairs and over-priced
goods *Return of a portion of the money received in a sale or
contract often illegal and corrupt in return for special
favors.
Slide 22
Exposed for his corruption by cartoonist and editor, Thomas
Nast Tweed Ring fell and 1873 Tweed convicted of embezzlement Later
Tweed was arrested on a civil charge and jailed in NYC, later died
there
Slide 23
Credit Mobilier Phony construction company owned by
stockholders of Union Pacific Railroad. Hired Credit Mobilier to
build the transcontinental railroad Charged the U.S. government
nearly twice the actual cost of the project. Bribed Congress to
stop the investigation. Largest scandal in U.S. history, and led to
greater public awareness of government corruption.
Slide 24
Whiskey Ring A group of President Grants officials imported
whiskey Used their offices to avoid paying taxes Cheated US
treasury of millions. Salary Grab Congress gave itself a raise,
$5,000 to $7,500 annually. Congressmen received a retroactive check
for $5,000, plus their raise Became a political issue.Later
repealed.
Slide 25
Assassinated by an upset Spoilsman. Led to VP Chester Arthur
becoming president Supported a change to the corrupt spoils system.
Pendleton Actthe Civil Service ActSigned into the law the Pendleton
Act also called the Civil Service Act. Required candidates applying
for government positions to a test to determine their
qualifications.
Slide 26
1880 Presidential Election: Democrats
Slide 27
patronage Under the Spoils System (patronage), candidates for
political office would offer potential jobs in exchange for votes.
gave supporters access to money and political favors. During the
Gilded Age, the Republicans and Democrats had roughly the same
number of supporters. To keep party members loyal, candidates
rewarded supporters and tried to avoid controversial issues. The
Republicans appealed to the industrialists, bankers, and eastern
farmers. sound money They favored the gold standard (sound money)
and high tariffs Blue laws, regulations that prohibited certain
activities people considered immoral. The Democrats attracted the
less privileged groups. such as northern urban immigrants,
laborers, southern planters, and western farmers. Supported soft
money and silver coinage.
Slide 28
Gilded Age Presidents 1876 - Rutherfraud (R) 1880 - Garfield
(R) (Assassinated by Charles Guiteau) 1881 - Arthur 1884 -
Cleveland (D) 1888 - Harrison (R) 1892 - Cleveland (D)
Slide 29
1881: Garfield Assassinated! Charles Guiteau: I Am a Stalwart,
and Arthur is President now!
Slide 30
Pendleton Act (1883) Civil Service Act. The Magna Carta of
civil service reform. 1883 14,000 out of 117,000 federal govt. jobs
became civil service exam positions. 1900 100,000 out of 200,000
civil service federal govt. jobs.
Slide 31
Arthur Reforms the Civil Service After the assassination,
President Arthur was able to get congressional support for the
Pendleton Civil Service Act. which created a commission of
classified government jobs
