Aim: Why were the late 1800’s referred to as the “Gilded Age”?

Do Now: What is a Golden Age Do Now: What is a Golden Age? Based on that, what do you think the “Gilded Age” means? (Gild is defined as: “To cover with a thin layer of gold”)

The Gilded Age Period of rapid industrial and economic growth from around 1869-1900 “Gilded Age”: Seems prosperous on the surface, but many problems underneath

Large change in American life including: Rise of big business Rise of unions New wave of immigration Urbanization of American life Does not heavily effect the South

The Second Industrial Revolution From 1865-1898 Wheat output increases 256% Corn output increases 222% Coal output increases 800% Railway lines increase 567%

Black Gold Large increase in Oil production Used to power internal combustion engines, light lamps, run factories (automobile invented in 1886) https://www.youtube.com/watch?v=FeSLPELpMeM

Steel U.S. rich in coal and iron Bessemer Process: Converts iron to steel Steel: Stronger and lighter than iron; allows production of new tools, railroads, bridges, skyscrapers, etc

https://www.youtube.com/watch?v=gJ1Mz7kGVf0 Thomas Edison establishes research laboratory in Menlo Park, New Jersey; perfects light bulb (R.I.P. Topsy)

Alexander Graham Bell invents the telephone

Railroads Link up entire nation Cause the creation of many towns and cities across the country Employee hundreds of thousands of laborers Create Time Zones Which of these innovations do you think was most important?

The American Dream

Social Darwinism Darwin’s belief: Natural Selection (“Survival of the fit enough”) Social Darwinism: Survival of the fittest; applied to economics and society The rich get rich because of their skills, poor stay poor because of their lack of skills

Government takes a Lassiez Faire (hands-off) approach

Horatio Alger Publishes hundreds of “rags to riches” stories Credited for creation of the “American Dream”, that one could rise to the upper class through “pluck and luck” Do you agree with this idea? Why or why not?

Captains of Industry v. Robber Barons Capitalism in America: Economic growth driven by the search for profit Trusts: Early corporations, formed to help manage large businesses

Captain of Industry: Wealthy business leader who positively contributed to the country

Robber Baron: Wealthy business leader who negatively contributed to the country

John Rockefeller Born into poor family; America’s first billionaire Becomes wealthy during Civil War, begins investing in Oil

Standard Oil Rockefeller’s oil trust Drives other oil companies out of business by undercutting them (selling at a loss) then buying them out (“Horizontal Integration”) Large scale lets Rockefeller demand cheap transportations rates

Positive Large-scale oil production; becomes available for the masses Negative Workers paid very little Fears that predatory business practices and increase in monopolies can lead to uncontrolled price increases

Philanthropy Would donate over $500 million over his lifetime to fund schools, colleges, health programs, etc Most of the donations came in his later years

Andrew Carnegie From a poor family of immigrants

Carnegie Steel Company Follows process of “Vertical Integration”; owns all components needed to create his steel Owns coal mines used to power railroads and furnaces, iron mines to mine iron, railroads to transport his steel, etc

Institutes limited profit sharing in his factories, although workers wages still low Lives a humble life; criticizes extravagant rich

Philanthropy Sells company to J.P. Morgan in 1901; spends rest of life as Philanthropist Builds 3,000 libraries, Carnegie Hall, etc

J.P. Morgan Born into wealthy family, father gets him important job at large bank

Banking Titan Makes fortune as a financier; buying up distressed companies, selling profitable ones, etc Creates U.S. Steel from Carnegie Steel Criticized for becoming wealthy through investments, as opposed to “creating something”

Marks shift in American entrepreneurs into banking and finance, away from industry Heavily attacked by the government; many of his businesses and trusts are broken up