1. Political and Economic Challenges
Chapter 16 Section 2
Political and Economic Challenges

2. Focus Question
Why did the political structure change during the Gilded Age?
Congress passed few laws between 1877 and 1900, in an era marked by inaction and political corruption.
The Gilded Age raised questions about whether or not democracy could succeed.

3. Political Parties are Equal
• Neither political party achieved control of both the White House and Congress for more than two years in a row.
• Presidents during the Gilded Age were elected only by slim margins.
Between 1877 and 1897, party loyalties were evenly divided.

4. Corruption
Corruption plagued national politics as many officials accepted bribes.

5. Corruption
Writers, such as Mark Twain, expressed concerns over the corruption.
The spoils system, in which party supporters received government jobs regardless of their qualifications, shifted power to a few.
This system made the political parties extremely powerful. 5

6. Civil Service Reform A movement arose to promote civil service reform.
Change finally happened, in part, because President James Garfield was assassinated by a man who believed the Republican Party owed him a job.
Ending the spoils system was difficult. 6

7. Civil Service Reform
Chester A. Arthur became President and supported civil service reform.
In 1883, he signed into law the Pendleton Civil Service Act,
which established a merit-based system for government employment.

8. Tariffs and Monetary Policy
Tariffs taxed imported goods, which supported American industry but increased consumer prices.
Monetary policy disputes concerned the gold standard, where gold became the basis of the nation’s currency.
The economic issues of tariffs and monetary policy caused debate during the Gilded Age.

9. Coinage Act of 1873
Monetary policy centered on a debate over the Coinage Act of 1873.
Some wanted to use both gold and silver.
Some people wanted to use only gold as money.
Bankers were worried silver would undermine the economy. Farmers favored it to create inflation and raise their income. 9