1. 2. To cover with or as if with a thin gold layer. To give an often deceptively attractive or approved appearance to. Term originally coined By Mark Twain. 3 ingredients that turned the nation into the world’s leading economy: Ingredient #1: Abundant and Available resources: a) Coal fields of the Appalachians (PA, WV, KY) b) Iron ore in The Great Lakes region c) Petroleum (PA, TX, WY, OK, etc.) Ingredient #2: Huge labor pool (Two Sources): A) Immigration: a. 1840-90, most from northern Europe (GB, Germany, Scand.) b. 1890-1920, most from southern eastern Europe (Italy, Poland, Russia). Called “New immigrants. 1. 2. Please note: Asians were not a part of these two huge waves of immigration. Why? Chinese Exclusion Act (1882): Congress made it illegal for Chinese to enter US. Gentlemen’s Agreement (1907): Japan agrees not to issue passports to their citizens and US agrees to accept immigrants already here. B) Migration from the deep south (poor southern whites and former slaves left the rural south and went to large cities in the north). Many found work as unskilled laborers in mines, factories, and mills. Strong Business Leadership: Most talented young men went into business, not politics or professional careers (doctor, lawyer, etc.). Many built large corporations that controlled entire industries. Some became very wealthy at the same time the avg. worker struggled to survive. John D. Rockefeller: Standard Oil Rockefeller's Standard Oil Video - The Men Who Built America - History.com Andrew Carnegie: Steel Andrew Carnegie clip J.P. Morgan: Finance The Rise of J. P. Morgan Video - The Men Who Built America - History.com Cornelius Vanderbilt: Railroads and Shipping The Rise of Cornelius Vanderbilt Video - The Men Who Built America - History.com John Jacob Astor & James B. Duke: Tobacco Philip Armour & Gustavus Swift: Meatpacking Charles Pillsbury: Milling Social Darwinism Belief that, as in the animal kingdom, in the world of business, only the strong survive. The rich justified their wealth by arguing that it was the “natural order” of life… Any effort by gov’t to regulate business was argued to go against nature Vertical and Horizontal Integration 1. Horizontal: Buying out all your competitors 2. Vertical: Control of an industry from top to bottom (raw materials to finished product). ex. Carnegie: owned mining companies (iron and coal) owned rail lines and freight ships owned steel mills (finished products). ● The effects of Industrialization: Workers became machine operators, skilled at one aspect of production, not craftsmen who knew every step (job satisfaction lost). ● Factories took away personal freedom ● $ gap grew between workers and employers ● Economic conditions forced more children to work Unions established in many industries for example: - International Cigar Makers Union - American Railway Union - United Mine Workers Labor’s Main Goals: 1. Higher wages 2. Better/safer working conditions 3. Fewer hours Labor’s main tactics to achieve goals: 1. Negotiation & bargaining 2. Work slowdown 3. Strikes 4. Violence Management’s Main Weapons to Break the Unions: 1. 2. 3. 4. 5. “Yellow Dog” contracts Lockouts “Scab” labor Strikebreakers (armed thugs) “blacklisting” There had been a # of local strikes before 1870, but in 1877 there was the first nationwide strike… The Great Strike of 1877: -wages for workers on Baltimore & Ohio RR were cut 2nd time in 2 months workers go on strike. Result: 1. Work stoppage stalled nation’s RRs as strike spread to other lines. 2. President Rutherford B. Hayes ordered federal troops in to run the RR. (US Constitution gives fed gov’t the right to regulate interstate commerce). -The strike was broken soon thereafter. The Haymarket Riot (1886): 1. Get a book…use the index at the back 2. Read first, then make a few notes on what happened that day 3. Most important: what were the outcomes/results of the riot? 1. Homestead Steel Strike (1892): Homestead, PA. take notes on this as you did for the events at Haymarket Homestead Strike Video - The Men Who Built America - History.com Gov’t sided with big business from 1870-1890 (“laissez faire” capitalism). Teddy Roosevelt earned national reputation as a “trust buster”... Break up monopolies Sherman Anti-Trust Act (1890): made monopolies illegal.