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Controversies over the Role of Government

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Controversies Over the Role of Government: APUSH Study Guide



Introduction

Hello, History Heroes! 🦸‍♂️ Buckle up for a wild ride back to the Gilded Age (1870s-1890s), a time when the U.S. government played the ultimate game of tug-of-war with big businesses and social issues. Spoiler alert: not everyone had the same idea about how much the government should stick its nose (or hand) into the economy.



The Gilded Age: All That Glitters...

The Gilded Age isn’t just an era with a shiny name. It was a time full of glittering economic growth and industrial boom, but don’t be fooled—beneath that shimmering surface was a whole lot of muck, like severe inequality and corruption. Picture a glittery doughnut that's, oh, filled with Brussels sprouts. 🤮🍩



Government's Balancing Act: Continuities and Changes

The role of government during the Gilded Age was like a seesaw at a playground: sometimes up, sometimes down, always teetering between involvement and invisibility.

One constant role it played was being the #1 cheerleader for economic growth, promoting infrastructure like railroads and acquiring fresh territories faster than you can say "Manifest Destiny!" Tariffs protected American industries, kind of like how putting your phone in a case protects it from a sudden demise from a 3-foot-drop. 📱

Then, there was regulation. The Sherman Antitrust Act of 1890 was the government's attempt to prevent businesses from becoming monopolistic supervillains. But a more hands-off approach, aka "laissez-faire," figured prominently too. Many believed the market was as self-regulating as a Roomba, although it was probably more like a Roomba stuck under your couch, just spinning helplessly. 🛋️



Federal Land Grants: Railroads

Moving onto the railroad industry—Uncle Sam went full Oprah ("You get land! You get land! Everybody gets land!") granting vast amounts of terrain to railroad companies. This boosted economic growth and made that government land quite valuable, like upgrading from generic-brand cereal to name-brand Cheerios. However, the binge of land grants led to a different kind of crunchtime—it sparked corruption and poor construction. Imagine building a LEGO set without reading the instructions, and you get the picture. Plus, displacing Native American tribes and wrecking the environment was a significant "how-not-to" guide for infrastructure planning 🌲👀.



Interstate Commerce Act of 1887

Before this Act, states were like amateur electricians trying to wire a house. Spoiler alert—they failed. The Supreme Court case Wabash v. Illinois (1886) said, "Nuh-uh,” states couldn’t regulate interstate commerce. So, drumroll, please... the Interstate Commerce Act was born! It required "reasonable and just" rates and mandated the creation of the Interstate Commerce Commission (ICC) to enforce the Act. Think of the ICC as the first federal agency acting like your nosy neighbor, always watching to ensure fairness. 🚒



The Antitrust Movement

Trusts (a.k.a. mega-corporations) were the billionaires of the 19th century, making middle-class folks quiver and old money feel a bit... outdated. In rides the Sherman Antitrust Act of 1890! It was supposed to bust trusts wide open, but the Supreme Court in United States v. E. C. Knight Co. (1895) put the kibosh on that, narrowing its application. Finally, in 1911, the Standard Oil Co. of New Jersey v. United States put the Act to good use, breaking up giant monopolies like Hulk smashing his morning alarm clock. 🕹️💥



Civil Service Reform

Ah, the beautiful world of meritocracy! The Pendleton Act of 1881 was like the government’s version of “America’s Got Talent,” ensuring that jobs were based on qualifications and not on who you knew. Before this, jobs were more like party favors handed out by politicians. Now, cue the background applause for merit-based appointments! 🙌



The Money Debate: "Easy" vs. "Hard"

Enter the ultimate frenemy showdown: "Easy" money vs. "Hard" money! Easy money advocates (think farmers and startups wanting loans like cookies fresh out of the oven) pushed for more paper currency, making borrowing easier. Hard money supporters (imagine Scrooge McDuck diving into his vault of gold coins) preferred a gold-backed currency to maintain value. The Panic of 1873, which sounds more like an old-timey horror movie, blamed the gold standard for a shrinking money supply and economic doom.



The Greenback Party

The Greenback Party was all about paper money and against reverting to gold or silver. They believed more currency would boost the economy. However, their dreams were dashed by the Specie Resumption Act of 1875, which slowly phased out those cherished greenbacks. The 1870s turbulence (shout-out to economic nightmares) didn't help, and the party fizzled out like soda left open overnight. 🥤



Silver's Shiny Rebellion

The "Crime of 1873" was basically a government decision to ghost silver, creating a ruckus among those who loved the shiny stuff. Miners, farmers, and debtors pushed back, and Congress threw them a bone with the Bland-Allison Act of 1878, mandating some silver coinage but leaving hardcore silver fans unsatisfied. The debate over an unlimited silver standard, though, was far from over. ⚖️



The Tariff Debate

Post-Civil War, tariffs were meant to protect U.S. businesses, like putting your delicate plants under a UV-protective shield. But just as much as care colorjourned those plants’ growth, tariffs raised prices and started a domino effect—other countries retaliated by hiking their tariffs too. This made exporting American products harder and tanked farm profits, stirring up economic discontent between the North and South like an overcaffeinated barista shaking your iced latte. 🥤



Key Terms to Review

“Easy” Money: Refers to monetary policy increasing the money supply, making loans easier to snag at lower interest rates. Think, "Borrow first, worry later!"

Antitrust Movement: Laws and actions aimed at stopping monopolies to promote fair competition. The commercial equivalent of splitting a giant cookie fairly amongst friends.

Bland-Allison Act of 1878: Mandated limited silver coinage, trying to strike a balance between inflation lovers and gold-standard fans.

Civil Service Commission: Created by the Pendleton Act, making sure government jobs were given based on who’s qualified, not who’s connected. Ratings agencies for job qualifications, basically.

Crime of 1873: Congress’s decision to stop minting silver, making those who loved silver-cash feel downright betrayed.

Federal Land Grants: Uncle Sam’s way of saying, "Take this land, build something cool!" Often resulted in haphazard construction and corruption.

Gilded Age: Boom and gloom era. Rapid growth accompanied by greed and inequality. Like biting into a chocolate but finding a worm inside—yikes!

Greenback Party: Advocated paper money, not backed by gold or silver. Eventually lost footing as gold returned to the scene.

Hard Money: Currency backed by gold or silver. Rock-solid (literally and metaphorically).

Hepburn Act of 1906: Beefed up the ICC, giving it extra muscles to regulate railroad rates.

Interstate Commerce Act of 1887: Regulated railroads to ensure fair rates and practices. The first federal regulatory agency came from this act.

Interstate Commerce Commission (ICC): The watchdog born from the Interstate Commerce Act, always on the lookout for shady railroad tricks.

Laissez-faire: Hands-off economic philosophy. Think of it as laissez-faire-ly let businesses do their own thing.

Panic of 1873: Financial crisis kicking off a lengthy recession. More than a panic, it was an economic horror show.

Pendleton Act of 1881: Shifted government hiring to a merit system. A talent show for government jobs.

Sherman Antitrust Act of 1890: Law aimed at breaking up monopolies, but initially as useful as a chocolate teapot in a summer heatwave.

Social Darwinism: "Survival of the fittest" applied to economics and society. Not endorsed by actual Darwin, though.

Specie Resumption Act of 1875: Phased out paper money for gold-backed currency, sending the Greenback Party into early retirement.

Standard Oil Co. of New Jersey v. United States: Landmark case dismantling Standard Oil’s monopoly.

Tariff Issue: Spin the wheel of tariffs, and watch regional tensions and prices fluctuate wildly.

United States v. E. C. Knight Co.: Limited the Sherman Act’s power by differentiating commerce from manufacturing.

Wabash v. Illinois: Boiled down states' regulatory power over railroads; only Uncle Sam could play that game.

Conclusion

So, dear reader, remember that studying the Gilded Age is like peeling back layers of a pretty pear—everything may seem spotless on the outside, but it's what’s underneath that tells the true story. Prepare yourself for the intricacies of economic policies, industrial battle royales, and the ever-turbulent debates over the government's role. Embrace your inner history buff and get ready to ace your APUSH exam! 📚💡

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