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

2. 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”)

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

4. 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

5. The Second Industrial Revolution
From
Wheat output increases 256%
Corn output increases 222%
Coal output increases 800%
Railway lines increase 567%

6. Black Gold Large increase in Oil production
Used to power internal combustion engines, light lamps, run factories (automobile invented in 1886)

7. 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

8.
Thomas Edison establishes research laboratory in Menlo Park, New Jersey; perfects light bulb (R.I.P. Topsy)

9. Alexander Graham Bell invents the telephone

10. 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?

11. The American Dream

12. 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

13. Government takes a Lassiez Faire (hands-off) approach

14. 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?

15. 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

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

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

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

20. 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

21. 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

22. 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

23. Andrew Carnegie
From a poor family of immigrants

24. 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

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

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

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

28. 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”

30. 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