Overview
This lecture covered America’s Gilded Age, focusing on the rise of industrial capitalism, major business leaders, technological innovations, expanding cities, wealth inequality, and government responses to monopolies and political corruption.
Key Themes of the Gilded Age
- The Gilded Age (late 1800s–early 1900s) saw rapid industrialization, urbanization, and vast economic growth.
- Business leaders called "robber barons" amassed great wealth and influence (e.g., Vanderbilt, Carnegie, Rockefeller, Ford).
- The era was marked by both new economic opportunities and serious limitations for working-class and rural Americans.
- Widespread corruption and corporate influence impacted politics, symbolized by closed access to government for ordinary people.
Major Industrialists and Their Legacies
- Cornelius Vanderbilt built wealth in railroads and shipping, expanding America’s rail network.
- Andrew Carnegie dominated steel production, introducing vertical integration (controlling every step from raw materials to sales).
- John D. Rockefeller founded Standard Oil, using horizontal integration (buying out competitors) to create a monopoly.
- J.P. Morgan centralized banking and finance, driving corporate consolidation.
- Henry Ford revolutionized manufacturing with the assembly line, making cars affordable to the masses.
Second Industrial Revolution and Urbanization
- The Second Industrial Revolution brought large-scale factories, mechanization, and mass production.
- Abundant resources, expanding railroads, increased immigration, and protective tariffs fueled growth.
- From 1870 to 1920, millions moved from farms to cities; 25 million immigrants arrived, swelling urban populations.
- Railroads accelerated economic expansion, standardized time (time zones), and enabled national brands.
Technological Innovations
- Thomas Edison invented the light bulb (1879), explored electricity, and held over 1,000 patents, including for sound and film technologies.
- George Westinghouse pioneered alternating current (AC), allowing electricity transmission over long distances.
- Alexander Graham Bell invented the telephone (1876), leading to rapid improvements and AT&T's creation.
- These inventions transformed daily life and communication.
Business Practices and Government Response
- Trusts were legal arrangements where rivals colluded to fix prices and control markets.
- Monopolies (one firm controlling an industry) limited competition and exploited consumers.
- The Sherman Antitrust Act (1890) outlawed business practices that restrained trade, aiming to break up monopolies and restore fair competition.
- The Interstate Commerce Commission regulated railroad rates to protect farmers and merchants.
Wealth Inequality and Social Impact
- By 1890, the richest 1% held as much wealth as the bottom half of the U.S. population.
- "Conspicuous consumption" by the wealthy displayed excess through lavish lifestyles.
- Social Darwinism justified wealth inequality, claiming the rich were naturally superior.
Political Corruption and Reform
- Political machines like Boss Tweed’s Tammany Hall in NYC used patronage and bribery to maintain power.
- Civil service exams were introduced to reduce corruption by ensuring federal jobs were awarded based on merit.
Key Terms & Definitions
- Robber Baron — an extremely wealthy and powerful industrialist with little accountability in an unregulated marketplace.
- Vertical Integration — controlling every stage of production, from raw materials to finished product.
- Horizontal Integration — buying out all competitors to dominate an industry.
- Trust — an arrangement where rival companies are managed under a single board to control a market.
- Monopoly — exclusive control over the supply of a product or service.
- Gilded Age — a period appearing prosperous and golden on the outside, but hiding underlying social problems.
- Conspicuous Consumption — spending primarily to display wealth rather than out of necessity.
- Social Darwinism — the belief that social progress comes from the survival of the fittest in human society.
Action Items / Next Steps
- Review the roles and methods of major industrialists (Vanderbilt, Carnegie, Rockefeller, Ford).
- Memorize definitions of vertical/horizontal integration, monopoly, and trust.
- Read about the Sherman Antitrust Act and its significance.
- Consider effects of technological innovations on American society.
- Watch recommended videos on Carnegie and Vanderbilt for deeper understanding.