1870-1896The Economic, Social, and Political

Environment

Major ThemesEconomic:

Big business v. workersBig business v. farmers

Social:Urban growthAnti-immigrant feelings

Political:Government favors big business while stating they are

“hands off”Farmers organize and help to form populist party

At the close of the 19th century how was life in urban areas changing?

People were moving in large numbers to the city to take advantage of the new jobs in industry1900: 3x’s larger than 18701920: More people lived in urban areas than rural ones

TechnologyIndoor plumbing, electricity, skyscrapers,

Immigration increasedHowever so did discrimination2nd wave of immigration – Southern and Eastern Europe

Poverty, corruption, pollution, crime, and congestion

What factors allowed for the rapid economic growth the US achieved at the turn of the century?The Federal Government supported the

growth of business interests Protective tariffsLand grants to railroad companies, loans to

help them build railroadsLittle to no tax on businessLoose immigration policy

More workers, lower payMonopolies are able to develop

Regulate production Set price and wages

What were the arguments made by those who supported little government intervention in the economy?

Land of opportunityWork hard Self discipline

Business functions best when not regulated by the governmentWages, supply, and demand work together to

regulate the marketContradiction:

want gov’t intervention when it helps (loans, tariffs, land grants)

Don’t want intervention if it may hurt profits (minimum wage, safer conditions)

How did trade unions attempt to change this situation?

Workers became disgusted by the long hours and low wages that they facedStrikes

Unsuccessful, government intervened to suppress

How did local reform minded governments attempt to address the needs of workers? Why were they unsuccessful?

Many tried toImprove health and safety in the workplaceMaximum hoursMinimum wageChild labor laws

* Unsuccessful due to Supreme Court rulings ; court was pro-business at the time

What were the arguments for and against a high protective tariff? Which party supported a high tariff? Which did not?

ForProtecting American business (Republicans)

Wages would fall

AgainstHigh retaliatory tariff (Democrats and

Populists) We wouldn’t be able to sell our products abroad

Who supported an expanded money supply? Why? Who did not?

Supporters: Too little money would hurt the expanding economyNot enough gold, need to use other methods to back the dollar

People in debt or who want to take out a loan Loan payments the same even though the value of the dollar is down,

benefits me! farmers, new business owners, home owners

Opponents:Too much money would devalue the dollar and make foreign

countries less likely invest in the US Loan payments made to me are the same, but the value of the dollar

is down so I am technically not making as much money as I previously did

Bankers, established businesses, creditors, and investors

What led to the growth of agriculture after the Civil War?

Demand for foodstuffs increasedPopulation more than doubled between 1870

and 1900Technological advancements

Increased productivity Cotton gin improvements Harvesters, combines, and reapers Better plows

What problems did farmers face during the Gilded Age?

SpecializationNew equipment needed to keep up was

expensiveRailroads, grain elevators, and suppliers

charged VERY high pricesOverproduction brought the price of crops

down

How did the Grange, Farmers’ Alliances, and Populists try to change the interaction between government and big business?

Grange: social connections, education Fought for fair treatment by big business

Farmers’ alliance helped to shape platform of the Populists

Populists (strongly influenced Progressives of early 1900s)Gov’t should own utilities to keep costs downFree silverGraduated income tax8 hour day and collective bargainingLimit immigrationDirect election of Senators, secret ballot, 1 term presidency,

initiative, referendum

Why did the Populist Party and the Democratic Party fuse in the election of 1896?

Ideals and goals were aligned Both parties voted for William Jennings BryanMcKinley wins election

Cleveland (dem) was president when recession of 1893 hit

What caused the Populist Party to die out after this election?

Power of monopolies was growing Racism of Southern Whites made it hard for

them to get behind anti-discrimination platform populists wanted to push

Many of their goals were achieved during the Progressive Era under the leadership of both Democrats and Republicans