Heimler's History Lecture: Controversies Over Government Role During the Gilded Age

Introduction

• Focus: Controversies over the government's role in the U.S. economy during the Gilded Age.
• Context: Unit 6 of the AP U.S. History curriculum.

Background

• Rise of industry in America led to significant changes:
  • Production of goods
  • Urban demographics
  • Class structure
• Debates over government's role have historical roots:
  • Alexander Hamilton vs. Thomas Jefferson on the National Bank
  • Henry Clay’s American System and infrastructure debates

Arguments Against Government Regulation

Laissez-Faire Economics

• Dominant economic ideology during the Gilded Age
• Meaning: "Leave alone" or "let alone"
• Origin: Traces back to 1776 with Adam Smith's "The Wealth of Nations"
• Principle: Economies are best governed by supply and demand without interference
  • "Invisible hand" leads to societal flourishing

Issues with Gilded Age Practice

• Lack of competition due to business consolidations
• Economic downturns (e.g., Panic of 1893) not addressed by government
• Grover Cleveland's inaction during economic disasters

Limited Government Involvement

• 1886 Supreme Court decision limiting state regulation of railroads
• Creation of the Interstate Commerce Commission (ICC)
  • ICC lacked funding and power

Government Involvement When Profitable

Expansion of Markets

• Cooperation between business leaders and Republican politicians
• Examples:
  • Overthrow of the Hawaiian monarchy (1893)
  • U.S. annexation of Hawaii (1898)
  • Open Door Policy with China (1899-1900)
    • Advocated for equal trading rights in Chinese ports

Conclusion

• Laissez-faire was predominant during the Gilded Age for business and politics, except when economic gains were evident for the government.

Additional Resources

• Heimler's Ultimate Review Packet for course and exam preparation

• Encourage subscription and engagement for continued content creation.