2 Political Changes of the Gilded Age Changes due to INDUSTRIALIZATIONBusiness corrupts politics
3 Social Darwinism British economist. Advocate of laissez-faire. Adapted Darwin’s ideas from the “Origin of Species” to humans.Notion of “Survival of the Fittest.”Herbert Spencer
4 New Business CultureLaissez Faire the ideology of the Industrial Age.* Individual as a moral and economic ideal.* Individuals should compete freely in the marketplace.* The market was not man-made or invented.* No room for government in the market!
6 Regulating the Trusts 1887 Interstate Commerce Act * Creates Interstate Commerce Commission* Attempts to regulate the Railroads1890 Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole
7 Causes of Rapid Industrialization Technological innovations. * Bessemer and open hearth process* Refrigerated cars* Edison “Wizard of Menlo Park” light bulb, phonograph, motion pictures.
8 Causes of Rapid Industrialization The Railroad fueled the growing US economy:* First BIG business in the US.* The key to opening the West.* Moving raw materials and consumer products was much easier* Increased demand for all products*INCREASED DEMAND = INCREASED PRODUCTION
10 Electricity George Westinghouse Reliable Energy Powered factories Causes industrial Expansion through faster productionCreates lots of new factory jobsGeorgeWestinghouse
11 The Light Bulb - 1880 Greatest American Inventor “Wizard of Menlo Park”Thomas Edison
12 Alexander Graham Bell Telephone(1876) Communication helps to speed the growth of business
13 1866, CARNEGIE INVESTED IN THE “BESSEMER PROCESS”.JULY 1892 WITH $25,000,000 CREATED CARNEGIE STEEL CORPORATIONPRODUCED 1/4 OF THE WORLD’S STEEL.
14 GeographyThe abundant natural resources of America fuel the growth of big business
15 Free Enterprise System 1. Unskilled & semi-skilled labor in abundance.2. Abundant capital.3. New, talented group of businessmen [entrepreneurs] and advisors.Market growing as US population increased.Government willing to help at all levels to stimulate economic growth.Abundant natural resources.
16 John Jacob Astor – Fur Trading, Real Estate, and Opium…
31 B. Social Darwinism British economist. Advocate of laissez-faire. Adapted Darwin’s ideas from the “Origin of Species” to humans.Notion of “Survival of the Fittest.”Herbert Spencer
32 2. Social Darwinism in America Individuals must have absolute freedom to struggle, succeed or fail.Therefore, state intervention to reward society and the economy is futile!William Graham Sumner Folkways (1906)
33 ANDREW CARNEGIE IMMIGRANT FROM GLASGOW, SCOTLAND WORKED IN PITTSBURGH, BOBBIN BOY FOR $1.20 A WEEK.SAVED MONEY; CHARMED INVESTORS TO ENTER THE RAILROAD BUSINESS.1861 STARTED 1ST BUSINESS IN IRON.
34 “On Wealth” “Gospel of Wealth” (1901). Inequality is inevitable and good.Wealthy should act as “trustees” for their “poorer brethren.”Gave away his vast FortuneEducation/ArtsAndrew Carnegie
35 The Gospel of Wealth: Religion in the Era of Industrialization Wealth no longer looked upon as bad.Viewed as a sign of God’s approval.Christian duty to accumulate wealth.Should not help the poor.Russell H. Conwell
36 E. JOHN D. ROCKEFELLER HARD WORKING GREAT MIND FOR #’S AND MATH IRON NERVES, DECISIVE,PRECISION, CAUTION,GREAT STRATEGIST ANDFORECASTER
37 STARTED OWN BUSINESS AT 20. 1865 - ENTERS THE OIL BUSINESS; HIRES HIS BROTHEROPENS STANDARD WORKS.ROCKEFELLER IS THE LARGESTOIL REFINER IN THE WORLD* CREATEDSTANDARD OIL COMPANY
39 1879 REFINED 90% OF THE OIL IN U.S. 70% EXPORTED OVERSEAS. % OF AMERICAN TOWNS SERVICED BYSTANDARD OIL COMPANY1912 ROCKEFELLER’S FORTUNE PEAKED AT $900,000,000 !!DIED WITH $26,410,237 AND GAVE MOST AWAY TO FOUNDATIONS AND HEIRS.