The gilded age

The Gilded AgeThe Gilded Age

Balancing Capital and LaborBalancing Capital and Labor"What is the chief end of man?--to get rich. In what way?--

dishonestly if we can; honestly if we must."-- Mark Twain 1871

Socialism v. CapitalismSocialism v. Capitalism► What is the role of government?What is the role of government?

► What role should the central government play in What role should the central government play in the economic development of the country?the economic development of the country?

► Investment Bank Bailout PlanInvestment Bank Bailout Plan

► How could government stop a Great Depression?How could government stop a Great Depression?

More governmentMore government Less governmentLess government

LiberalLiberal ConservativeConservativeSocialistSocialist CapitalistCapitalistDemocratDemocrat Republican Republican

Where do you fall

ideologically?

The GildThe Gild

Breakers of the Vanderbilt Family

The Astor Family

The Boldt Castle

The Mount of Edith Wharton

Lockwood-Mathews Mansion

► Second Industrial RevolutionSecond Industrial Revolution TranscendentalistsTranscendentalists

► Capitalism (Big Business and Robber Capitalism (Big Business and Robber Barons)Barons)

► UrbanizationUrbanization

Part I: The Gilded AgePart I: The Gilded AgeTime of unprecedented economic, industrial, and population expansion from e.1877-1900.

UrbanizationUrbanization

Mark TwainMark Twain► The “Gilded Age” was coined The “Gilded Age” was coined

by Samuel Clemens in his by Samuel Clemens in his book of the same name.book of the same name.► Explored political and economic Explored political and economic

corruption in the United States. corruption in the United States. ► The central characters were tied The central characters were tied

together in a government together in a government railroad bribery scheme.railroad bribery scheme.

► Depicted an American Depicted an American society that, despite its society that, despite its appearance of promise appearance of promise and prosperity, was and prosperity, was riddled with corruption riddled with corruption and scandal. and scandal.

Second Industrial Revolution 1871-Second Industrial Revolution 1871-19141914

► Marked by enormous growth and Marked by enormous growth and consolidation of wealth and consolidation of wealth and ownershipownership Major IndustriesMajor Industries

► RailroadsRailroads► AutomobileAutomobile► SteelSteel► OilOil► ElectricityElectricity► CommunicationCommunication

The Industrialists or Robber BaronsThe Industrialists or Robber Barons► William Vanderbilt (Railroads)William Vanderbilt (Railroads)► Jay Gould (Railroads)Jay Gould (Railroads)► Andrew Carnegie (Steel)Andrew Carnegie (Steel)► John D. Rockefeller (Oil)John D. Rockefeller (Oil)► Henry Ford (Automobiles)Henry Ford (Automobiles)

Read, “Captains of Industry”Read, “Captains of Industry”

Forced competitors out of business by reducing wages thereby

guaranteeing price control.

Vertical and Horizontal Vertical and Horizontal IntegrationIntegration

► As developed by Andrew CarnegieAs developed by Andrew Carnegie

Why is this a potentially dangerous business practice?

Are there any businesses that do this today?

Railroad RevolutionRailroad Revolution► Helped the creation of Helped the creation of

new towns through new towns through federal land grants.federal land grants.

► Created new markets.Created new markets.► Fueled other industries.Fueled other industries.

Questions:Questions:

► Why was a transcontinental railroad Why was a transcontinental railroad important to the development of the important to the development of the United States?United States?

► What role did the government play in its What role did the government play in its development?development?

► Why might the government have Why might the government have encouraged monopoly of the rails?encouraged monopoly of the rails?

Railroad Railroad ConsolidationConsolidation

“The Modern Colossus of (Rail) Roads”

Joseph Keppler drew this cartoon in 1879, featuring the railroad “giants” William

Vanderbilt (top), Jay Gould (right) and Cyrus W. Fields (left). The three magnates formed

a railroad trust out of their Union Pacific, New York Central, and Lake Shore &

Dependence Lines.

1. First of all, what is a trust?

2. What is the symbolism and message?

3. What historical comparison is being made in this illustration?

The Colossus The Colossus of Rhodesof Rhodes

The statue was a colossus of the Greek god Helios,

erected on the Greek island of Rhodes between 292 and 280 BC. It is considered one of the Seven Wonders of the

Ancient World. Before its destruction, the Colossus of

Rhodes stood over 30 meters (107 ft) high,

making it the tallest statue of the ancient world.

John D. RockefellerJohn D. Rockefeller

“What a funny little government.”

► Monopolized oil industry – by 1880 owned 90% of Monopolized oil industry – by 1880 owned 90% of market the refining industry.market the refining industry.

► Profited from Trust AgreementsProfited from Trust Agreements

► What is the message of this cartoon?What is the message of this cartoon?

Social DarwinismSocial Darwinism

► 4,000 Americans became 4,000 Americans became millionaires during the Gilded Age.millionaires during the Gilded Age.

► Used Darwin’s Theory of Natural Used Darwin’s Theory of Natural Selection to explain the economic Selection to explain the economic evolution of human society.evolution of human society.

► Wealth was the result of strong Wealth was the result of strong work ethic.work ethic.

► The poor are lazy and inferior and The poor are lazy and inferior and deserved no aid.deserved no aid.

► Supported laissez-faire.Supported laissez-faire.► Read, “Survival of the Fittest”Read, “Survival of the Fittest”

Herbert Spencer

Robber Barons or Robber Barons or Philanthropists?Philanthropists?

Read, Read,

““Responsibilities of the Rich” Responsibilities of the Rich”

and and

““From Rags to Riches”From Rags to Riches”

A Revolution of Other SortsA Revolution of Other Sorts

► Industrial SupremacyIndustrial Supremacy

► How did the Industrial Revolution How did the Industrial Revolution and the resulting urbanization and the resulting urbanization impact the living and working impact the living and working

conditions of Americans?conditions of Americans?

► Jobs=immigrant influx=labor supply Jobs=immigrant influx=labor supply increases=productivity increases=capital increases=productivity increases=capital

investment increases=laissez-faire government investment increases=laissez-faire government contributes=business grows and perpetuates cycle contributes=business grows and perpetuates cycle

by creating more jobs…by creating more jobs…► Jobs=immigrant influx=housing crunch in Jobs=immigrant influx=housing crunch in

cities=tenementscities=tenements

Part II: The Exploitation of Part II: The Exploitation of LaborLabor

Impact of Industrial Impact of Industrial RevolutionRevolution

►The changing workplaceThe changing workplace

Division of Labor ActivityDivision of Labor Activity

Jacob Riis and Lewis Jacob Riis and Lewis HineHine

How the Other Half LiveHow the Other Half Livess Read Excerpt, “Chapter 1: Genesis of the

Tenement”

Children in the WorkplaceChildren in the Workplace

►See worksheetSee worksheet

The American SweatshopThe American Sweatshop

►Read handoutRead handout

Labor’s Answer to CapitalLabor’s Answer to Capital

► Cooper Union Cooper Union MeetingMeeting

Discussion QuestionsDiscussion Questions

The Triangle Shirtwaist FactoThe Triangle Shirtwaist Factoryry► How did this event force reform in the How did this event force reform in the

workplace?workplace?

Max Blank and Isaac Harris, owners of the Triangle Shirtwaist

Company

The Owners were indicted on April 11th in the death of Margaret Schwartz, a worker in the factory.  The trial began 8 months later only to finish in 18 days.  On December 27th  factory owners were acquitted of responsibility.  Three years later 23 individual suits were settled at a

rate of $75 per death.

Become a Photojournalist Become a Photojournalist

►See worksheetSee worksheet

Part III: UnionizationPart III: Unionization

“Solidarity Forever!”by Ralph Chapin (1915)

“Solidarity Forever!”by Ralph Chapin (1915)

When the union's inspiration When the union's inspiration through the workers‘ blood shall run, through the workers‘ blood shall run,There can be no power greater There can be no power greater anywhere beneath the sun; anywhere beneath the sun;Yet what force on earth is weaker Yet what force on earth is weaker than the feeble strength of one, than the feeble strength of one,But the union makes us strong! But the union makes us strong!

CHORUS:CHORUS:Solidarity forever,Solidarity forever,Solidarity forever,Solidarity forever,Solidarity forever,Solidarity forever,For the union For the union makes us strong! makes us strong!

Labor UnitesLabor Unites

► Industrialization Industrialization ►UrbanizationUrbanization► ImmigrationImmigration

Large disenfranchised

population

Populist Movement: First attempt of the people to reform capital and labor relationship.

Read an interpretation of a familiar story presented as a political allegory of the 1890’s.

See handout

Leads to…

Unionization in 20Unionization in 20thth Century Century AmericaAmerica

► An organized association of An organized association of workers formed to protect andworkers formed to protect and

further their rights and interests. further their rights and interests. From the Latin unus 'one.' From the Latin unus 'one.'

► In 1900, 1 in 12 workers In 1900, 1 in 12 workers unionized.unionized.

Bricklayers Union, PA, 1900

A History of US: Working for A History of US: Working for FreedomFreedom

►How do you liberate workers?How do you liberate workers? Give laborers land to the west for Give laborers land to the west for

farming.farming. Allow cooperatives that give laborers Allow cooperatives that give laborers

ownership.ownership. Give government control of economy.Give government control of economy.

►What is the role of the government What is the role of the government in managing the American in managing the American economy?economy?

►Should workers be allowed to Should workers be allowed to unionize?unionize?

Begin at 7:15

The Growth of UnionsThe Growth of Unions► American Federation of Labor (American Federation of Labor (

AFLAFL)) Samuel GompersSamuel Gompers

► Read, “Read, “On the Goals of Trade On the Goals of Trade Unions.”Unions.”

► According to Gompers speech to the According to Gompers speech to the Senate, what were the benefits of Senate, what were the benefits of unionization?unionization?

► Read handout p. 55-7Read handout p. 55-7► Industrial Workers of the World (IWW)Industrial Workers of the World (IWW)

Advocated socialism: government control of Advocated socialism: government control of business and equal distribution of wealth.business and equal distribution of wealth.

► United Mine Workers (UMW)United Mine Workers (UMW) Industry specific organization Industry specific organization – Read handout p. – Read handout p.

57-957-9

► The Knights of Labor The Knights of Labor – Read handout p. 51-3– Read handout p. 51-3

In 1882, on average, 675 laborers were killed in work-related accidents each WEEK!

Labor Strikes BackLabor Strikes Back

►Haymarket AffairHaymarket Affair May 4, 1886 – Workers convene May 4, 1886 – Workers convene

to protest police brutality at an to protest police brutality at an earlier strike rally on May 1earlier strike rally on May 1stst (May Day).(May Day).

►Homestead LockoutHomestead Lockout Read handout p. 64-5Read handout p. 64-5

►Pullman StrikePullman Strike 18941894

Why were unions considered a threat to capitalism by business and government?

Why were unionists considered anarchists and even communists?

Anti-Union Anti-Union SentimentSentiment

► Contrast the two Contrast the two families illustrated families illustrated regarding:regarding: AppearanceAppearance StationStation ActivityActivity ExperienceExperience

► What is the message?What is the message? If the worker trusted his If the worker trusted his

employer instead of employer instead of union leaders, he would union leaders, he would do far better than if he do far better than if he joined a labor joined a labor organization and organization and engaged in strikes. engaged in strikes.

Thomas Nast, "The Workingman's Mite" Harper's Weekly, May 20, 1871

The Supreme Court The Supreme Court Upholds Laissez-faireUpholds Laissez-faire

New York state passed the “Bakeshop Act” New York state passed the “Bakeshop Act” limiting the hours a bakery employee could work limiting the hours a bakery employee could work in one week to 60.in one week to 60.

Lochner, a bakery owner, was fined for allowing Lochner, a bakery owner, was fined for allowing employees to exceed limitation.employees to exceed limitation.

He sued protesting the constitutionality of the law He sued protesting the constitutionality of the law under the under the 1414thth Amendment Amendment and his and his liberty of contractliberty of contract..

Supreme Court overturned his conviction stating:Supreme Court overturned his conviction stating:► ……this law interfered "with the right of contract between this law interfered "with the right of contract between

the employer and employees.“ To the Court, the right the employer and employees.“ To the Court, the right to buy and sell labor through contract was a "liberty of to buy and sell labor through contract was a "liberty of the individual" protected under the 14th amendment .the individual" protected under the 14th amendment .

► Lochner v. New York – 1905Lochner v. New York – 1905

UnionizationUnionizationHomework

► Interview one teacher employed by this district.Interview one teacher employed by this district.► Ask that teacher the following questions regarding Ask that teacher the following questions regarding

their membership in the HEA, MTA and NEA.their membership in the HEA, MTA and NEA.1.1. Do you voluntarily belong to this teacher union?Do you voluntarily belong to this teacher union?

2.2. What do you gain by being a member of this union?What do you gain by being a member of this union?

3.3. Do you believe this union provides you with a better Do you believe this union provides you with a better working environment and, if so, how?working environment and, if so, how?

4.4. What are the downfalls of being a unionized employee?What are the downfalls of being a unionized employee?

5.5. Do you think unions still serve a vital function in the 2007 Do you think unions still serve a vital function in the 2007 American workplace?American workplace?

► Record all responses in addition to any ancillary Record all responses in addition to any ancillary commentary your subject offers that could commentary your subject offers that could contribute to our conversation.contribute to our conversation.

UnionizationUnionizationHomework

Teacher Name: __________________________________________________Teacher Name: __________________________________________________

1.1.

2.2.

3.3.

4.4.

5.5.

Present Day Labor Reform:Present Day Labor Reform: ChinaChina

Read ArticleRead Article

► What questions does this article raise for What questions does this article raise for you?you?

► Why is this article problematic?Why is this article problematic?

Present Day Labor Reform:Present Day Labor Reform: Wal- Wal-MartMart

Read article and answer questionsRead article and answer questions

Haymarket AffairHaymarket Affair

"There will come a time when our "There will come a time when our silence will be more powerful than silence will be more powerful than the voices you strangle today!" the voices you strangle today!"

~ August Spies, ~ August Spies, Haymarket Martyr Haymarket Martyr

Read handout p. 53-4Read handout p. 53-4

Back

The Pullman The Pullman StrikeStrike

► Pullman Company made luxury and Pullman Company made luxury and passenger train cars.passenger train cars.

► Pullman Company Rail NetworkPullman Company Rail Network► Wage cuts forced a strike.Wage cuts forced a strike.

American Railway Union members boycotted American Railway Union members boycotted the Pullman cars.the Pullman cars.

Government ends strike because interstate Government ends strike because interstate commerce is affected.commerce is affected.

► Origin of Origin of Labor DayLabor Day..Back

The Fourteenth AmendmentThe Fourteenth Amendment► Summarize the language of sections 1 and 5 of the Fourteenth Summarize the language of sections 1 and 5 of the Fourteenth

Amendment.Amendment. ► In your opinion, what values are reflected in the Fourteenth In your opinion, what values are reflected in the Fourteenth

Amendment? Are these values compatible with your ideas about a Amendment? Are these values compatible with your ideas about a democracy? democracy?

Section. 1. All persons born or naturalized in the United States Section. 1. All persons born or naturalized in the United States and subject to the jurisdiction thereof, are citizens of the United and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the process of law; nor deny to any person within its jurisdiction the equal protection of the laws. equal protection of the laws.

Section. 5. The Congress shall have power to enforce, by Section. 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article. appropriate legislation, the provisions of this article.

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