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The Gilded Age




     Balancing 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. Capitalism
           ►   What is the role of government?

►   What role should the central government play in the
          economic development of the country?
                ►   Investment Bank Bailout Plan

►    How could government stop a Great Depression?


    More government                        Less government

     Liberal                                Conservative
                        Where do you
         Socialist                         Capitalist
                             fall
          Democrat                        Republican
                        ideologically?
The Gild
                                The Boldt Castle



                                                            The Astor Family




   Breakers of the Vanderbilt Family




Lockwood-Mathews Mansion                           The Mount of Edith Wharton
Part I: The Gilded Age
Time of unprecedented economic, industrial, and
   population expansion from e.1877-1900.




► Second Industrial Revolution
   Transcendentalists
► Capitalism (Big Business and Robber Barons)
► Urbanization
Urbanization
Mark Twain
► The “Gilded Age” was coined by
  Samuel Clemens in his book of
  the same name.
  ►   Explored political and economic
      corruption in the United States.
  ►   The central characters were tied
      together in a government railroad
      bribery scheme.
  ►   Depicted an American society
      that, despite its appearance
      of promise and prosperity,
      was riddled with corruption
      and scandal.
Second Industrial Revolution 1871-1914
      ► Marked by enormous growth and
       consolidation of wealth and ownership
         Major Industries
           ► Railroads
           ► Automobile           Forced competitors out of
           ► Steel           business by reducing wages thereby
           ► Oil                  guaranteeing price control.
           ► Electricity
           ► Communication
         The Industrialists or Robber Barons
           ► William Vanderbilt (Railroads)
           ► Jay Gould (Railroads)
           ► Andrew Carnegie (Steel)
           ► John D. Rockefeller (Oil)
           ► Henry Ford (Automobiles)
         Read, “Captains of Industry”
Vertical and Horizontal Integration
      ►   As developed by Andrew Carnegie




     Why is this a potentially dangerous business practice?
          Are there any businesses that do this today?
Railroad Revolution
        ►   Helped the creation of new
            towns through federal land
            grants.
        ►   Created new markets.
        ►   Fueled other industries.
                        Questions:
        ►   Why was a transcontinental railroad important to the
            development of the United States?
        ►   What role did the government play in its
            development?
        ►   Why might the government have encouraged
            monopoly of the rails?
Railroad
      Consolidation
“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
   of 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. Rockefeller
►   Monopolized oil industry – by 1880 owned 90% of market the
    refining industry.
►   Profited from Trust Agreements




►   What is the message of this cartoon?

                            “What a funny little government.”
Social Darwinism
►   4,000 Americans became
    millionaires during the Gilded Age.
►   Used Darwin’s Theory of Natural
    Selection to explain the economic
    evolution of human society.
►   Wealth was the result of strong
    work ethic.
►   The poor are lazy and inferior and
    deserved no aid.
►   Supported laissez-faire.
►   Read, “Survival of the Fittest”
                                          Herbert Spencer
Robber Barons or
  Philanthropists?

          Read,
“Responsibilities of the Rich”
            and
   “From Rags to Riches”
A Revolution of Other Sorts
                 ► Industrial Supremacy


     ► How did the Industrial Revolution and the
         resulting urbanization impact the living
         and working conditions of Americans?


►   Jobs=immigrant influx=labor supply increases=productivity
      increases=capital investment increases=laissez-faire
    government contributes=business grows and perpetuates
                 cycle by creating more jobs…
►   Jobs=immigrant influx=housing crunch in cities=tenements
Part II: The Exploitation of Labor
Impact of Industrial Revolution

     ► The changing workplace


      Division of Labor Activity
Jacob Riis and Lewis Hine




How the Other Half Lives
   Read Excerpt, “Chapter 1: Genesis of the Tenement”
Children in the Workplace

     ► See worksheet
The American Sweatshop

     ► Read handout
Labor’s Answer to Capital
    ► Cooper Union Meeting
        Discussion Questions
The Triangle Shirtwaist Factory
  ► How did this event force reform in the 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

     ► See worksheet
Part III: Unionization
“Solidarity Forever!”
            by Ralph Chapin (1915)
When the union's inspiration
   through the workers‘ blood shall run,
There can be no power greater
   anywhere beneath the sun;
Yet what force on earth is weaker
   than the feeble strength of one,
But the union makes us strong!
   CHORUS:
   Solidarity forever,
   Solidarity forever,
   Solidarity forever,
   For the union
     makes us strong!
Labor Unites
► Industrialization
                                           Large
► Urbanization           Leads to…    disenfranchised
► Immigration                            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
Unionization in 20th Century America
                         ► An organized association of workers
                             formed to protect and further their
                            rights and interests. From the Latin
                                         unus 'one.'
                          ► In 1900, 1 in 12 workers unionized.




   Bricklayers Union, PA, 1900
A History of US: Working for Freedom
                                             Begin at 7:15


   ► How do you liberate workers?
      Give laborers land to the west for farming.
      Allow cooperatives that give laborers
       ownership.
      Give government control of economy.
   ► What is the role of the government in
     managing the American economy?
   ► Should workers be allowed to
     unionize?
The Growth of Unions
In 1882, on average, 675 laborers were killed in work-related accidents each WEEK!

    ► American Federation of Labor ( AFL
       )
          Samuel Gompers
             ► Read, “On the Goals of Trade Unions.”
             ► According to Gompers speech to the
            Senate, what were the benefits of
            unionization?
     ► Industrialhandout p. 55-7 the World
          ► Read Workers of                             (IWW)
            Advocated socialism: government control of business
             and equal distribution of wealth.
     ► United Mine Workers (UMW)
            Industry specific organization – Read handout p. 57-9
     ►
Labor Strikes Back
Why were unions considered a threat to capitalism by business and
                         government?
Why were unionists considered anarchists and even communists?

 ► Haymarket Affair
      May 4, 1886 – Workers convene to
       protest police brutality at an earlier
       strike rally on May 1st (May Day).
 ► Homestead Lockout
      Read handout p. 64-5
 ► Pullman Strike
      1894
Anti-Union
       Sentiment
► Contrast the two families
  illustrated regarding:
     Appearance
     Station
     Activity
     Experience       


► What is the message?
   If the worker trusted his
    employer instead of union
    leaders, he would do far
    better than if he joined a
    labor organization and       Thomas Nast, "The Workingman's Mite"
    engaged in strikes.          Harper's Weekly, May 20, 1871
The Supreme Court
                 Upholds Laissez-faire
                 ► Lochner v. New York – 1905

 New York state passed the “Bakeshop Act” limiting the
  hours a bakery employee could work in one week to 60.
 Lochner, a bakery owner, was fined for allowing
  employees to exceed limitation.
 He sued protesting the constitutionality of the law under
  the 14th Amendment and his liberty of contract.
 Supreme Court overturned his conviction stating:
   ► …this law interfered "with the right of contract between the
     employer and employees.“ To the Court, the right to buy and
     sell labor through contract was a "liberty of the individual"
     protected under the 14th amendment .
Unionization
                           Homework
►   Interview one teacher employed by this district.
►   Ask that teacher the following questions regarding their
    membership in the HEA, MTA and NEA.
    1. Do you voluntarily belong to this teacher union?
    2. What do you gain by being a member of this union?
    3. Do you believe this union provides you with a better working
       environment and, if so, how?
    4. What are the downfalls of being a unionized employee?
    5. Do you think unions still serve a vital function in the 2007
       American workplace?
►   Record all responses in addition to any ancillary
    commentary your subject offers that could contribute to
    our conversation.
Unionization
                             Homework


 Teacher Name: __________________________________________________


 1.


 2.


 3.


 4.


 5.
Present Day Labor Reform:
              China
                   Read Article



►   What questions does this article raise for you?
       ► Why is this article problematic?
Present Day Labor Reform: Wal-
             Mart




   Read article and answer questions
Haymarket Affair
                       "There will come a time when our
                       silence will be more powerful than the
                       voices you strangle today!"
                                              ~ August Spies,
                                            Haymarket Martyr




Read handout p. 53-4
       Back
The Pullman Strike

► Pullman Company made luxury and passenger
  train cars.
► Pullman Company Rail Network
► Wage cuts forced a strike.
   American Railway Union members boycotted the
    Pullman cars.
   Government ends strike because interstate
    commerce is affected.
► Origin of Labor Day.
                                                   Back
The Fourteenth Amendment
►   Summarize the language of sections 1 and 5 of the Fourteenth
    Amendment.

►   In your opinion, what values are reflected in the Fourteenth
    Amendment? Are these values compatible with your ideas about
    a democracy?

     Section. 1. All persons born or naturalized in the United
      States and subject to the jurisdiction thereof, are citizens of
      the United States and of the State wherein they reside. No
      State shall make or enforce any law which shall abridge the
      privileges or immunities of citizens of the United States; nor
      shall any State deprive any person of life, liberty, or property,
      without due process of law; nor deny to any person within its
      jurisdiction the equal protection of the laws.
     Section. 5. The Congress shall have power to enforce, by
      appropriate legislation, the provisions of this article.
                                                                   Back

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The gilded age

  • 1. The Gilded Age Balancing 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
  • 2. Socialism v. Capitalism ► What is the role of government? ► What role should the central government play in the economic development of the country? ► Investment Bank Bailout Plan ► How could government stop a Great Depression? More government Less government Liberal Conservative Where do you Socialist Capitalist fall Democrat Republican ideologically?
  • 3. The Gild The Boldt Castle The Astor Family Breakers of the Vanderbilt Family Lockwood-Mathews Mansion The Mount of Edith Wharton
  • 4. Part I: The Gilded Age Time of unprecedented economic, industrial, and population expansion from e.1877-1900. ► Second Industrial Revolution  Transcendentalists ► Capitalism (Big Business and Robber Barons) ► Urbanization
  • 6. Mark Twain ► The “Gilded Age” was coined by Samuel Clemens in his book of the same name. ► Explored political and economic corruption in the United States. ► The central characters were tied together in a government railroad bribery scheme. ► Depicted an American society that, despite its appearance of promise and prosperity, was riddled with corruption and scandal.
  • 7. Second Industrial Revolution 1871-1914 ► Marked by enormous growth and consolidation of wealth and ownership  Major Industries ► Railroads ► Automobile Forced competitors out of ► Steel business by reducing wages thereby ► Oil guaranteeing price control. ► Electricity ► Communication  The Industrialists or Robber Barons ► William Vanderbilt (Railroads) ► Jay Gould (Railroads) ► Andrew Carnegie (Steel) ► John D. Rockefeller (Oil) ► Henry Ford (Automobiles)  Read, “Captains of Industry”
  • 8. Vertical and Horizontal Integration ► As developed by Andrew Carnegie Why is this a potentially dangerous business practice? Are there any businesses that do this today?
  • 9. Railroad Revolution ► Helped the creation of new towns through federal land grants. ► Created new markets. ► Fueled other industries. Questions: ► Why was a transcontinental railroad important to the development of the United States? ► What role did the government play in its development? ► Why might the government have encouraged monopoly of the rails?
  • 10. Railroad Consolidation “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?
  • 11. The Colossus of 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.
  • 12. John D. Rockefeller ► Monopolized oil industry – by 1880 owned 90% of market the refining industry. ► Profited from Trust Agreements ► What is the message of this cartoon? “What a funny little government.”
  • 13. Social Darwinism ► 4,000 Americans became millionaires during the Gilded Age. ► Used Darwin’s Theory of Natural Selection to explain the economic evolution of human society. ► Wealth was the result of strong work ethic. ► The poor are lazy and inferior and deserved no aid. ► Supported laissez-faire. ► Read, “Survival of the Fittest” Herbert Spencer
  • 14. Robber Barons or Philanthropists? Read, “Responsibilities of the Rich” and “From Rags to Riches”
  • 15. A Revolution of Other Sorts ► Industrial Supremacy ► How did the Industrial Revolution and the resulting urbanization impact the living and working conditions of Americans? ► Jobs=immigrant influx=labor supply increases=productivity increases=capital investment increases=laissez-faire government contributes=business grows and perpetuates cycle by creating more jobs… ► Jobs=immigrant influx=housing crunch in cities=tenements
  • 16. Part II: The Exploitation of Labor
  • 17. Impact of Industrial Revolution ► The changing workplace Division of Labor Activity
  • 18. Jacob Riis and Lewis Hine How the Other Half Lives Read Excerpt, “Chapter 1: Genesis of the Tenement”
  • 19. Children in the Workplace ► See worksheet
  • 20. The American Sweatshop ► Read handout
  • 21. Labor’s Answer to Capital ► Cooper Union Meeting  Discussion Questions
  • 22. The Triangle Shirtwaist Factory ► How did this event force reform in the 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.
  • 23. Become a Photojournalist ► See worksheet
  • 25. “Solidarity Forever!” by Ralph Chapin (1915) When the union's inspiration through the workers‘ blood shall run, There can be no power greater anywhere beneath the sun; Yet what force on earth is weaker than the feeble strength of one, But the union makes us strong! CHORUS: Solidarity forever, Solidarity forever, Solidarity forever, For the union makes us strong!
  • 26. Labor Unites ► Industrialization Large ► Urbanization Leads to… disenfranchised ► Immigration 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
  • 27. Unionization in 20th Century America ► An organized association of workers formed to protect and further their rights and interests. From the Latin unus 'one.' ► In 1900, 1 in 12 workers unionized. Bricklayers Union, PA, 1900
  • 28. A History of US: Working for Freedom Begin at 7:15 ► How do you liberate workers?  Give laborers land to the west for farming.  Allow cooperatives that give laborers ownership.  Give government control of economy. ► What is the role of the government in managing the American economy? ► Should workers be allowed to unionize?
  • 29. The Growth of Unions In 1882, on average, 675 laborers were killed in work-related accidents each WEEK! ► American Federation of Labor ( AFL )  Samuel Gompers ► Read, “On the Goals of Trade Unions.” ► According to Gompers speech to the Senate, what were the benefits of unionization? ► Industrialhandout p. 55-7 the World ► Read Workers of (IWW)  Advocated socialism: government control of business and equal distribution of wealth. ► United Mine Workers (UMW)  Industry specific organization – Read handout p. 57-9 ►
  • 30. Labor Strikes Back Why were unions considered a threat to capitalism by business and government? Why were unionists considered anarchists and even communists? ► Haymarket Affair  May 4, 1886 – Workers convene to protest police brutality at an earlier strike rally on May 1st (May Day). ► Homestead Lockout  Read handout p. 64-5 ► Pullman Strike  1894
  • 31. Anti-Union Sentiment ► Contrast the two families illustrated regarding:  Appearance  Station  Activity  Experience   ► What is the message?  If the worker trusted his employer instead of union leaders, he would do far better than if he joined a labor organization and Thomas Nast, "The Workingman's Mite" engaged in strikes. Harper's Weekly, May 20, 1871
  • 32. The Supreme Court Upholds Laissez-faire ► Lochner v. New York – 1905  New York state passed the “Bakeshop Act” limiting the hours a bakery employee could work in one week to 60.  Lochner, a bakery owner, was fined for allowing employees to exceed limitation.  He sued protesting the constitutionality of the law under the 14th Amendment and his liberty of contract.  Supreme Court overturned his conviction stating: ► …this law interfered "with the right of contract between the employer and employees.“ To the Court, the right to buy and sell labor through contract was a "liberty of the individual" protected under the 14th amendment .
  • 33. Unionization Homework ► Interview one teacher employed by this district. ► Ask that teacher the following questions regarding their membership in the HEA, MTA and NEA. 1. Do you voluntarily belong to this teacher union? 2. What do you gain by being a member of this union? 3. Do you believe this union provides you with a better working environment and, if so, how? 4. What are the downfalls of being a unionized employee? 5. Do you think unions still serve a vital function in the 2007 American workplace? ► Record all responses in addition to any ancillary commentary your subject offers that could contribute to our conversation.
  • 34. Unionization Homework  Teacher Name: __________________________________________________  1.  2.  3.  4.  5.
  • 35. Present Day Labor Reform: China Read Article ► What questions does this article raise for you? ► Why is this article problematic?
  • 36. Present Day Labor Reform: Wal- Mart Read article and answer questions
  • 37. Haymarket Affair "There will come a time when our silence will be more powerful than the voices you strangle today!" ~ August Spies, Haymarket Martyr Read handout p. 53-4 Back
  • 38. The Pullman Strike ► Pullman Company made luxury and passenger train cars. ► Pullman Company Rail Network ► Wage cuts forced a strike.  American Railway Union members boycotted the Pullman cars.  Government ends strike because interstate commerce is affected. ► Origin of Labor Day. Back
  • 39. The Fourteenth Amendment ► Summarize the language of sections 1 and 5 of the Fourteenth Amendment. ► In your opinion, what values are reflected in the Fourteenth Amendment? Are these values compatible with your ideas about a democracy?  Section. 1. All persons born or naturalized in the United States and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.  Section. 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article. Back