1. The “Gilded Age”
Time period in which society looked good on the outside, but experienced many problems
The Good
There was high growth in industry, technology, business, the economy, and population.

2. The Gilded Age
The Bad: Conflict occurred between the factory owners and workers, Americans and immigrants.
Society was full of corruption, especially in politics and business

3. The Gilded Age Causes of Rapid Industrialization:
1. Pro-Business Government Policies
Laissez-faire—government “hands off” policy with little regulation
Morrill Tariff Act—protected businesses from foreign competition
Land grants—the government gave railroad companies thousands of miles of free land
Factories increase production
New tools and production methods
Mass production
Assembly lines
Long work days

4. Natural Resources 2. Natural Resources
U.S. had abundant natural resources—coal, iron ore, timber, oil, etc.
“Bessemer Process”- Easier, cheaper process to convert iron into steel
“Bessemer Process”- blowing air through molten iron to remove carbon and other impurities
By 1880, American manufacturers were using this new method to produce more than 90% of nation’s steel
Gasoline, a by-product of the refining process was originally thrown away, but became the most important form after the car became popular!
Railroads become the biggest customer
New farm machines (steel plow, reaper)
Innovative construction
Bridges
Skyscrapers

5. Rising Population 3. Population Growth:
The population tripled, largely due to immigration, providing a large labor force

6. New Technology 4. New technology
New inventions and innovations made production better and faster and improved trade

7. New Technology Alexander Graham Bell Invention/Innovation: Telephone
Impact: Communication between businesses, factories, and customers increased
1876- patented the telephone
More than 1 million telephones in the US by 1900
1896- Marconi invented the wireless telegraph

8. The “Wizard of Menlo Park”
Thomas Edison
Invention/Innovation: Light bulb, Electricity distribution
By 1890, electricity ran numerous machines and was available in homes and factories
Xrays, Phonograph, Motion picture, Battery, Rubber
Established research lab in Menlo Park, NJ
Held more than 1,000 patents
Perfected the incandescent light bulb in 1880
Later invented an entire system for creating and distributing electrical power

9. Model T Automobile Henry Ford produced first car in 1896
Began to reshape American cultural and social life
Importance of the Assembly Line
autos on highways
1917 nearly 5 million!

10. New Forms of Business Organization
Business & industry transformed:
Massive corporations
Managers hired to make factories run more efficiently
New business models (trusts) integrated various businesses under 1 board of directors
Laissez Faire  the ideology of the Industrial Age.
Individuals should compete freely in the marketplace.
No room for government in the market!

11. Entrepreneurs New Business Culture
Fuel industrialization by investing in products or ideas to make a profit
Invested in factories, railroads, & mines
Corporations: form of group ownership by a number of different people
Investors lose no more than original investment
Invested in factories, railroads, & mines
Flourish in system of Capitalism & Free Enterprise

12. Vertical & Horizontal Integration

13. Monopolies Companies that control nearly all of a particular industry
Since most monopolies were run by boards of trustees, monopolies also known as “trusts”
Monopolies led to a new generation of U.S. millionaires
Henry Bessemer (& William Kelly) turned iron into steel in 1850s—process allowed for mass production of steel 9

14. Captain of Industry vs Robber Baron
Captains of Industry- Positive Term
Robber Barons- Negative Term
Business leaders served their nation in a positive way.
Business leaders built their fortunes by stealing from the public.
Increased the supply of goods by building factories.
Drained the country of its natural resources.
Raised productivity and expanded markets.
Persuaded public officials to interpret laws in their favor.
Created jobs that enabled many Americans to buy new goods and raise their standard of living.
Ruthlessly drove their competitors to ruin.
Created museums, libraries, and universities, many of which still serve the public today.
Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions

15. The Monopolists Andrew Carnegie-Carnegie Steel Company:
“Rags to Riches” story
Mastered vertical integration to out-produce his competition, offer better quality steel at lower prices
Andrew Carnegie was a poor immigrant from Scotland. Carnegie monopolized the steel industry. Carnegie sought to control all aspects of steel-making and built his company into the world’slargest steel-maker.
Carnegie built his steel empire by using horizontal integration. Carnegie sold his company for a quarter billion dollars to J.P. Morgan. He believed that the wealthy had a duty to society and gave hundreds of millions to charities

16. Carnegie did not pay his employees very much & did not allow unions in his factories…
…but he was also a philanthropist who gave money to New York City libraries, colleges, & performing arts institutions 9

17. The Monopolists John Rockefeller : Standard Oil
Used horizontal integration to monopolize the oil industry
In 1863, John D. Rockefeller created Standard Oil Company in Cleveland (at age 24!); he also used spies, bribery, threats
By 1879, Standard Oil sold 90% of all U.S. oil & sold to Asia, Africa, & South America 12

18. Rockefeller was labeled a “robber baron” who took advantage of immigrant workers, driving competition out of business, & influenced the national gov’t…
…he also gave away $500 million to charities, created the Rockefeller Foundation, & founded the University of Chicago
Came from a wealthy family. He entered the oil-refining business during the Civil War (bought a substitute for the war).Rockefeller formed the first modern corporation in the oil industry called Standard Oil.
He believed competition was wasteful and used ruthless methods to
eliminate competitors. By 1882, he controlled over 90% of American oil refining. He was called a “Rock-A-Fellow” by many because of his ruthlessness.
Rockefeller controlled the railroads by forcing them to pay him rebates because of the volume of business he gave them. Rockefeller also gave millions to hospitals and colleges.
Rockefeller was so wealthy, he dictated to the U.S. Government to protect big business (laissez faire). Rockefeller would be hated by many because he had too much control over the oil industry and the government. Some believed he was corrupt because he took away the right to compete (free enterprise).

19. The Monopolists Monopolists justified their wealth:
“Gospel of Wealth”-argued that it is God's will that some men attained great wealth, and they should share with “deserving poor”
Social Darwinism- natural competition weeds out the weak & the strong survive
Deserving Poor 14