The Rise of Capitalism and Big Business

The Gilded Age saw the dramatic rise of capitalism and big business, which permanently transformed America from an agrarian society into an industrial powerhouse. This transformation brought about significant changes and challenges in economic, social, political, and environmental spheres.

Economic Transformation: The economic landscape of America was revolutionized by technological advancements and new business practices.

Example: The Bessemer Process, which allowed for the mass production of steel, was a key technological innovation that fueled industrial growth during this period.

The rise of monopolies and trusts characterized the business world, with powerful corporations dominating entire industries. This era of laissez-faire economics saw minimal government intervention in business affairs.

Vocabulary: A trust was a legal arrangement where stockholders in several companies transferred their shares to a single set of trustees, effectively creating a monopoly.

Social Impact: The rapid industrialization and urbanization led to significant social challenges:

1. Low wages resulted in urban slums and "dumbbell tenements," increasing crime and poverty.
2. The Settlement House Movement, led by reformers like Jane Addams, emerged to address urban social problems.
3. Immigration increased, with "New Immigrants" arriving from Eastern and Southern Europe.

Political Consequences: The rise of big business had profound effects on the political landscape:

1. Political machines, such as Tammany Hall in New York City, gained power through patronage and corruption.
2. Big businesses exerted significant control over local and national politicians.

Highlight: The Sherman Anti-Trust Act of 1890 was the first federal legislation to prohibit trusts and monopolies, though it was initially ineffective due to weak enforcement.

Environmental Impact: The rapid industrialization took a toll on the environment:

1. Mining practices shifted from placer mining to industrial strip mining, causing extensive environmental damage.
2. Natural resources were exploited at an unprecedented rate.
3. Oil boom towns emerged, leading to localized environmental degradation.

In response to these environmental concerns, early conservation movements like the Sierra Club began to form.

The agricultural sector also saw significant changes, with farmers organizing into groups like The Grange and the People's Party (later the Populist Party) to advocate for their interests. These organizations supported policies such as the free coinage of silver, income tax, and regulation of railroads.

Quote: "The chief business of the American people is business." - President Calvin Coolidge, reflecting the pro-business attitude of the era.

The rise of capitalism and big business during the Gilded Age set the stage for many of the economic and social debates that would continue into the 20th century and beyond.

Period 6 Overview: 1865-1898

The period from 1865 to 1898, known as the Gilded Age, was a time of rapid economic and urban development in the United States. This era saw the nation transform from a rural agrarian society to an increasingly urbanized and industrialized one, resulting in significant social, economic, political, and environmental changes.

Definition: The Gilded Age refers to the period in American history from the 1870s to the 1890s, characterized by rapid economic growth, industrialization, and social problems masked by a thin gold gilding.

The end of the Civil War in 1865 marked the beginning of this period, which coincided with the Second Industrial Revolution and the rise of big business. During this time, the United States experienced massive migrations, the emergence of an industrial culture, and greater opportunities for some, while also facing increased restrictions and prejudices towards immigrants, minorities, and women.

Highlight: The United States emerged as the largest economy in the world and a potential international power during this period.

Key aspects of this era include:

1. Westward expansion and its impact on Native American culture
2. The rise of capitalism and big business
3. The formation and struggles of labor unions
4. Various groups' struggles for equality

Example: The Homestead Act and the Dawes Act were government initiatives that encouraged westward expansion but ultimately led to the destruction of Native American culture on the prairie.

The period ends around 1898 with the Spanish-American War, marking the beginning of American imperialism. However, some historians extend this period to 1900, which is often how the College Board ends the Gilded Age (Period 6) on exams.

Vocabulary: Laissez-faire economics refers to a policy of minimal government interference in the economic affairs of individuals and society.

This era has been labeled in various ways by historians, including the "Second Industrial Revolution," the "Railroad Era," and the "Last Frontier." However, the term "Gilded Age" has endured, highlighting the contrast between the glittering wealth of the "Captains of Industry" and the underlying social and economic problems of the time.