Overview:
The Gilded Age faced a lot of political corruption. Big businesses rose to power and became monarchs in the government while the presidents proved to be rather ineffective in passing bills to protect not only the poor whites but also the newly freed blacks. The common man, meanwhile did not get any help due to lack of government involvement and had to fend for themselves in order to survive in society.
The Gilded Age faced a lot of political corruption. Big businesses rose to power and became monarchs in the government while the presidents proved to be rather ineffective in passing bills to protect not only the poor whites but also the newly freed blacks. The common man, meanwhile did not get any help due to lack of government involvement and had to fend for themselves in order to survive in society.
The Problems of the gilded age
The Forgotten Presidents And Their Effectiveness
During this time there were 4 presidents in particular known as the "forgotten presidents". They included Rutherford B. Hayes, Chester A. Arthur, Grover Cleveland, and Benjamin Harrison. These presidents got their name due to ineffectiveness and various scandals and corruption that they were involved with and thus in today's society became somewhat forgotten. For example, in the election of Hayes vs. Tilden the results reached a deadlock . It got to the point where the Compromise of 1877 had to be passed in order to make electoral counters to go and count the votes and determine how many votes the state was giving to each presidential candidate. The time period for the political parties themselves faced a very delicate balance and even the smallest event could tip the scales to favor the opposing party. This caused a lot of back and forth in power which resulted in a lack of ability to properly get things to even be passed or to stay for an extended period of time.
During this time there were 4 presidents in particular known as the "forgotten presidents". They included Rutherford B. Hayes, Chester A. Arthur, Grover Cleveland, and Benjamin Harrison. These presidents got their name due to ineffectiveness and various scandals and corruption that they were involved with and thus in today's society became somewhat forgotten. For example, in the election of Hayes vs. Tilden the results reached a deadlock . It got to the point where the Compromise of 1877 had to be passed in order to make electoral counters to go and count the votes and determine how many votes the state was giving to each presidential candidate. The time period for the political parties themselves faced a very delicate balance and even the smallest event could tip the scales to favor the opposing party. This caused a lot of back and forth in power which resulted in a lack of ability to properly get things to even be passed or to stay for an extended period of time.
Big Businesses and Corruption
The Gilded Age brought forth many new businesses and industries. These businesses were headed by usually middle-class men that then took control in areas such as oil, gold and steel. Many of them rose to power both economically and politically such as JP Morgan, Carnegie, and Rockefeller. While their companies brought many new products, it also brought many corruptions as well as various scandals such as the Credit Mobilier Scandal. This particular scandal was the result of the transcontinental railroad being built, in which the workers hired themselves at inflated prices in order to make more money. Many businesses took part in patronage, giving people high positions in return for political support. There was also a lot of ongoing competition during the time among businesses to be the best and to have the most money and power which led them to in some cases take drastic measures to remain at the top. They often banded together and formed trusts in order to make even more money than they already had. The poor during this time stayed poor and in some cases became even more poor and the successful elites claimed that the poor people were just lazy and that they (rich) were most fit to advance and run big businesses. This was known as Social Darwinism which the rich used Darwin's ideas of natural selection to argue that they were more adapted to have money and control big business rather than the poor people.
The Gilded Age brought forth many new businesses and industries. These businesses were headed by usually middle-class men that then took control in areas such as oil, gold and steel. Many of them rose to power both economically and politically such as JP Morgan, Carnegie, and Rockefeller. While their companies brought many new products, it also brought many corruptions as well as various scandals such as the Credit Mobilier Scandal. This particular scandal was the result of the transcontinental railroad being built, in which the workers hired themselves at inflated prices in order to make more money. Many businesses took part in patronage, giving people high positions in return for political support. There was also a lot of ongoing competition during the time among businesses to be the best and to have the most money and power which led them to in some cases take drastic measures to remain at the top. They often banded together and formed trusts in order to make even more money than they already had. The poor during this time stayed poor and in some cases became even more poor and the successful elites claimed that the poor people were just lazy and that they (rich) were most fit to advance and run big businesses. This was known as Social Darwinism which the rich used Darwin's ideas of natural selection to argue that they were more adapted to have money and control big business rather than the poor people.
Big Business Owners Profiles
Carnegie: Andrew Carnegie was born into poverty and lived in poverty during his childhood. He came to America at age 13 and began working at a cotton mill shortly after. He later became involved in the steel industry and began his rise to wealth and power. Carnegie participated in vertical integration which takes all aspects of industry into one company. He often would purchase both railways and nearby mines so he could transport the steel from the mines at a cheaper price. This allowed his company, the Carnegie Steel Company, to become a multi-million dollar industry and sent Carnegie from living in poverty to having tons of wealth and political influence. He later on sold his company to JP Morgan for $500 million. In his later life, most of the money he made he donated and made places such as Carnegie Hall.
Rockefeller:John D. Rockefeller was another major business tycoon and was actually the first billionaire in America. He started off as an average middle class man but soon rose into massive power in the US. Rockefeller managed to pay to have a substitute in the military and thus began his rise to wealth and power. Rockefeller became involved in the oil industry and used horizontal integration in which he allied with other companies in order to form a massive monopoly. He often formed many trusts with others which helped to boost him and allowed him to gain tons of riches. His company, the Standard Oil Company, became one of the biggest industries in America at the time.
Carnegie: Andrew Carnegie was born into poverty and lived in poverty during his childhood. He came to America at age 13 and began working at a cotton mill shortly after. He later became involved in the steel industry and began his rise to wealth and power. Carnegie participated in vertical integration which takes all aspects of industry into one company. He often would purchase both railways and nearby mines so he could transport the steel from the mines at a cheaper price. This allowed his company, the Carnegie Steel Company, to become a multi-million dollar industry and sent Carnegie from living in poverty to having tons of wealth and political influence. He later on sold his company to JP Morgan for $500 million. In his later life, most of the money he made he donated and made places such as Carnegie Hall.
Rockefeller:John D. Rockefeller was another major business tycoon and was actually the first billionaire in America. He started off as an average middle class man but soon rose into massive power in the US. Rockefeller managed to pay to have a substitute in the military and thus began his rise to wealth and power. Rockefeller became involved in the oil industry and used horizontal integration in which he allied with other companies in order to form a massive monopoly. He often formed many trusts with others which helped to boost him and allowed him to gain tons of riches. His company, the Standard Oil Company, became one of the biggest industries in America at the time.
"The surplus wealth of the few will become, in the best sense, the property of the many, because administered for the common good, and this wealth passing through the hands of the few will become in the best sense..."
Andrew Carnegie
Wealth
Laissez Faire Policy
There was very little regulation of business during the Gilded Age. The government didn't set working hours, conditions or even pay. That was left up to the businesses which caused them to be able to easily manipulate the poor people in order to get more products out and not spend as much. Since the government wasn't monitoring anything as well, companies could set their own prices and fees which led to tons of inflation of goods.
There was very little regulation of business during the Gilded Age. The government didn't set working hours, conditions or even pay. That was left up to the businesses which caused them to be able to easily manipulate the poor people in order to get more products out and not spend as much. Since the government wasn't monitoring anything as well, companies could set their own prices and fees which led to tons of inflation of goods.
The progressive Era: Effective or not?
Big Businesses: Take Away Trusts, Take Away Power?
The Gilded Age brought numerous massive trusts that were containing the core of the riches in the hands of the few. It led to a surge in elites that basically had total control of the government at the time. However, Theodore Roosevelt. William Howard Taft, and Woodrow Wilson began to break these trusts in the hopes to put the government back in control and take down the massive monopolies that were corrupting the United States.
Roosevelt felt that some trusts were good and others were bad and had the intention to tame the bad trusts in order to restore political power. Following the passing of the Elkins Act which dealt with the issues regarding railroads, president Roosevelt ordered for the National Securities Trust to be dissolved. He was successful in doing this and ended up rattling Wall Street because multiple massive companies had just been broken apart. Roosevelt had hoped that by breaking trusts, it would show the monopolies that the government was in control, contrary to the belief that the monopolies were in control.
Woodrow Wilson also got involved with trust busting during his presidency. He ran under what was known as the New Freedom campaign, which sought to tackle the banks, the tariff and most importantly the trusts. He won the election and quickly got to work to improve these three aspects of the government. In order to further break down the massive trusts that had built up during the Gilded Age, Wilson passed the Clayton Anti-Trust Act which had lengthened the Sherman's Act that was passed years earlier. The act itself helped to improve labor conditions by exempting labor unions from lawsuits, made known that any strikes or pickets against companies were perfectly legal, and helped to brake down the holding companies which had left one major corporation control other smaller ones.
The Gilded Age brought numerous massive trusts that were containing the core of the riches in the hands of the few. It led to a surge in elites that basically had total control of the government at the time. However, Theodore Roosevelt. William Howard Taft, and Woodrow Wilson began to break these trusts in the hopes to put the government back in control and take down the massive monopolies that were corrupting the United States.
Roosevelt felt that some trusts were good and others were bad and had the intention to tame the bad trusts in order to restore political power. Following the passing of the Elkins Act which dealt with the issues regarding railroads, president Roosevelt ordered for the National Securities Trust to be dissolved. He was successful in doing this and ended up rattling Wall Street because multiple massive companies had just been broken apart. Roosevelt had hoped that by breaking trusts, it would show the monopolies that the government was in control, contrary to the belief that the monopolies were in control.
Woodrow Wilson also got involved with trust busting during his presidency. He ran under what was known as the New Freedom campaign, which sought to tackle the banks, the tariff and most importantly the trusts. He won the election and quickly got to work to improve these three aspects of the government. In order to further break down the massive trusts that had built up during the Gilded Age, Wilson passed the Clayton Anti-Trust Act which had lengthened the Sherman's Act that was passed years earlier. The act itself helped to improve labor conditions by exempting labor unions from lawsuits, made known that any strikes or pickets against companies were perfectly legal, and helped to brake down the holding companies which had left one major corporation control other smaller ones.
Improving Politics During the Progressive Era:
The Progressive Era saw a rise in people becoming involved in politics and finally having a say in government rather than the massive monopolies. The Progressives sought and fought for three new aspects of voting for government that gave the middle class more of a say. These were initiative, referendum, and recall. Initiative allowed the people to be able to directly propose laws and amendments and thus pass the call of the state and federal government. Referendum allowed to voters to give somewhat of a final say in laws that are trying to be passed during the voting period. It also allowed for people to petition laws that are passed potentially be able to change the law that was proposed by the legislature. Recall allowed people to remove and replace people from office before their term was up (it is however, not the exact same thing as impeachment). The Progressives were successful in implementing this into the government and is, in fact, still evident in our government today. These new implements of politics allowed for people of all social classes that could vote to be able to voice their opinion and really have a say in not only who controlled the government, but what was passed in government. It helped to tackle some of the power that monopolies held during the Gilded Age which helped to break down some of the significant political corruption that America faced during these time periods.
The Progressive Era saw a rise in people becoming involved in politics and finally having a say in government rather than the massive monopolies. The Progressives sought and fought for three new aspects of voting for government that gave the middle class more of a say. These were initiative, referendum, and recall. Initiative allowed the people to be able to directly propose laws and amendments and thus pass the call of the state and federal government. Referendum allowed to voters to give somewhat of a final say in laws that are trying to be passed during the voting period. It also allowed for people to petition laws that are passed potentially be able to change the law that was proposed by the legislature. Recall allowed people to remove and replace people from office before their term was up (it is however, not the exact same thing as impeachment). The Progressives were successful in implementing this into the government and is, in fact, still evident in our government today. These new implements of politics allowed for people of all social classes that could vote to be able to voice their opinion and really have a say in not only who controlled the government, but what was passed in government. It helped to tackle some of the power that monopolies held during the Gilded Age which helped to break down some of the significant political corruption that America faced during these time periods.
Government Corrals Business:
Theodore Roosevelt promised Americans that he would treat everyone fairly, without favoring any one social class. Roosevelt’s Square Deal policy involved the regulation of businesses or corporations and was based on his pledge. The Square Deal policy had three parts: Control of Corporations, Consumer Protection, and Conservation of Natural Resources. Control of Corporations involved the regulation and breaking up of trusts or big corporations who were making vast profits free of government control. In 1906 Upton Sinclair published ‘The Jungle’ which revealed unsanitary health conditions to Americans. Consumer Protection involved new acts such as the Meat Inspection Act and Pure Food and Drugs Act that were responses to the novel. Conservation of Natural Resources involved the establishment of a National Forest Service in 1905, the National Monuments Act. Roosevelt established the Grand Canyon as one of the first national monuments.
Democrat Woodrow Wilson won the 1912 election against Roosevelt and Taft. Wilson’s New Freedom reform program continued with progressive solutions for monopolies by breaking up trusts. Some examples of business reform were the Federal Trade Act of 1914 and the Clayton Antitrust Act of 1914. The Federal Trade Act set up a Federal Trade Commission to investigate and stop illegal businesses. The Clayton Antitrust Act stated that trusts were illegal, and that unions and strikes were legal. The New Freedom program also focused on Bank Reforms to find a way to make money in circulation controllable. Some examples of Bank Reforms involved the Creation of a Federal Reserve System with 12 district banks to control inflation and the Federal Farm Loan Act to support farmers. The last part of the New Freedom program involved tariff reform. The Underwood Tariff of 1913 or Revenue Act of 1913 or Underwood-Simmons Act lowered the tariff on imported goods. This program overall sought to help brake down the monopolies even more and gave the government higher control than companies had during the Gilded Age. All of the acts passed were steps towards a lesser impact on business and a government more focused on the people rather than based mostly off of corruption.
Theodore Roosevelt promised Americans that he would treat everyone fairly, without favoring any one social class. Roosevelt’s Square Deal policy involved the regulation of businesses or corporations and was based on his pledge. The Square Deal policy had three parts: Control of Corporations, Consumer Protection, and Conservation of Natural Resources. Control of Corporations involved the regulation and breaking up of trusts or big corporations who were making vast profits free of government control. In 1906 Upton Sinclair published ‘The Jungle’ which revealed unsanitary health conditions to Americans. Consumer Protection involved new acts such as the Meat Inspection Act and Pure Food and Drugs Act that were responses to the novel. Conservation of Natural Resources involved the establishment of a National Forest Service in 1905, the National Monuments Act. Roosevelt established the Grand Canyon as one of the first national monuments.
Democrat Woodrow Wilson won the 1912 election against Roosevelt and Taft. Wilson’s New Freedom reform program continued with progressive solutions for monopolies by breaking up trusts. Some examples of business reform were the Federal Trade Act of 1914 and the Clayton Antitrust Act of 1914. The Federal Trade Act set up a Federal Trade Commission to investigate and stop illegal businesses. The Clayton Antitrust Act stated that trusts were illegal, and that unions and strikes were legal. The New Freedom program also focused on Bank Reforms to find a way to make money in circulation controllable. Some examples of Bank Reforms involved the Creation of a Federal Reserve System with 12 district banks to control inflation and the Federal Farm Loan Act to support farmers. The last part of the New Freedom program involved tariff reform. The Underwood Tariff of 1913 or Revenue Act of 1913 or Underwood-Simmons Act lowered the tariff on imported goods. This program overall sought to help brake down the monopolies even more and gave the government higher control than companies had during the Gilded Age. All of the acts passed were steps towards a lesser impact on business and a government more focused on the people rather than based mostly off of corruption.
Government Takes Control Through Nationwide Improvement:
During this time, the government tried to improve different aspects of the nation. They passed several acts that would benefit both the land and the people.The Meat Inspection Act enabled the government to prevent misbranded meat from being distributed. They also started inspecting packing plants to make sure that meat was being packaged in sanitary conditions. The health of the people became a primary concern for the government, which was a big step for the because they were involved with the health of middle-class Americans, rather than continuing to favor the wealthy upper-class.The economy was reformed when the Federal Reserve Act, which created a banking system along with twelve regional banks, was passed. These banks were governed by the Federal Reserve Board, which was successful because it’s still part of the economy today. The economy was no longer dominated by large federal corporations and the twelve banks gave the country a way to properly disperse money. Preservation of the environment became an important issue to the government, which was shown when the forest reserve act was passed in 1891. This allowed the president to set aside land that would later be used as parks. The government sold land at a cheap price with the condition that the buyer would irrigate the soil in three years. They did this under the Desert Land Act. This prevented the country’s natural resources from being exploited by big corporations. Although these acts didn't directly relate to reforming political corruption, they managed to take away power from the big corporations and give the middle class more control over what occurred within America.
During this time, the government tried to improve different aspects of the nation. They passed several acts that would benefit both the land and the people.The Meat Inspection Act enabled the government to prevent misbranded meat from being distributed. They also started inspecting packing plants to make sure that meat was being packaged in sanitary conditions. The health of the people became a primary concern for the government, which was a big step for the because they were involved with the health of middle-class Americans, rather than continuing to favor the wealthy upper-class.The economy was reformed when the Federal Reserve Act, which created a banking system along with twelve regional banks, was passed. These banks were governed by the Federal Reserve Board, which was successful because it’s still part of the economy today. The economy was no longer dominated by large federal corporations and the twelve banks gave the country a way to properly disperse money. Preservation of the environment became an important issue to the government, which was shown when the forest reserve act was passed in 1891. This allowed the president to set aside land that would later be used as parks. The government sold land at a cheap price with the condition that the buyer would irrigate the soil in three years. They did this under the Desert Land Act. This prevented the country’s natural resources from being exploited by big corporations. Although these acts didn't directly relate to reforming political corruption, they managed to take away power from the big corporations and give the middle class more control over what occurred within America.
Conclusion:
Overall the rampant political corruption that dominated the national economy during the Gilded Age was later attacked and subdued by numerous reforms aimed at restraining dominant trusts and corruptions.
The Progressive Era sought to solve the issues that aroused during the Gilded Age, mainly with the mass monopolies rising to power and taking control, thus leading to significant social inequality. It was overall successful due to many monopolies being broken up from the acts against trusts, as well as the common man being able to start to become more actively involved in politics. Politicians were also able to take more control rather than business thus causing a more separate economy and politics. However, not all corruption can be solved in any case, and this is no exception. There were still monopolies that influenced America and had corruption in their names. There were still bad labor conditions, despite acts to improve them. The companies weren't perfect but rather vastly improved and made safer as well as more controllable for the time period.
Overall the rampant political corruption that dominated the national economy during the Gilded Age was later attacked and subdued by numerous reforms aimed at restraining dominant trusts and corruptions.
The Progressive Era sought to solve the issues that aroused during the Gilded Age, mainly with the mass monopolies rising to power and taking control, thus leading to significant social inequality. It was overall successful due to many monopolies being broken up from the acts against trusts, as well as the common man being able to start to become more actively involved in politics. Politicians were also able to take more control rather than business thus causing a more separate economy and politics. However, not all corruption can be solved in any case, and this is no exception. There were still monopolies that influenced America and had corruption in their names. There were still bad labor conditions, despite acts to improve them. The companies weren't perfect but rather vastly improved and made safer as well as more controllable for the time period.