RoohidParast

4/5/16
Elberson1

GildedAgeDBQ
AftertheCivilwar,largebusinessesruledAmerica.Priortotheindustrial
revolution,thegovernmentupheldahandsoffapproachtowardsbusiness.Under
thelaissezfaireprinciple,unregulatedmarketsledtocompetition,yetthissystem
diminishedundertheironfistsofgrowingcorporations.Theimpactofbigbusiness
ontheeconomyandpoliticswasimmenseduring1870to1899.Corporationswere
growingrapidlyinnumberandsize,whichhadabrowbeataffectonAmerican
economyanddefinedAmericanlife.ThegrowingcorporationsinAmerica
dominatedmostoftheeconomy,creatingalargegapbetweentherichandthe
poor.Withtheirincreasedeconomicinfluence,theirpoliticalgainscomewith
significantease,andthecorporation'sabilitytocontrolboththeeconomyand
politicsofthenation,showedinlargethenegativeeffectsitcantollonthe
americanpeople.
InaUnitedStateshistoricalstatisticalgraph,numbersshowthattheindex
pricesoffood,fuel,andlightinghaddecreasedsignificantlyspanningfrom1870to
1899.Infact,itwascutpasthalftheoriginalindexedprice.Although,thestatistic
alsoshowsthattheoverallpriceoflivinghaddecreasedfairlysignificantly.The
corporation'sabilitytomassproduceandcompeteareoneofthereasonstheprices
haddropped,butthelowpayandruleofcorporatemonopoliesmaybethereason
theindexedpriceoflivinghadnot.Themajorpoliticalandeconomicissuesofthe
GildedAgewerelargeinnumber.Manyoftheseissueswereduetoobvious
interestofbusinessmen,andtheylobbiedandspentfreelytogainsupportfor
favorabletarifflegislationandbusinessfriendlymonetarypolicies.Oneofthese

issuesincludetariffs.Thetariffissueiscomplex,astherearetwokindsoftariffs
withtwodistinctlydifferentpurposes.Intermsofcorporations,Ordinaryrevenue
tariffsaremodesttaxesplacedonimportstofundagenciesresponsibleforgoods
andpeopleenteringtheUnitedStates.Customsandimmigrationserviceswere
financedheavilybyrevenuetariffs,givingmorepowertobusiness.
Withthefistoflargebusinesses,ofcourse,camedisagreements.Atthetime,
businessestookadvantageofworkers,withpoortreatment,aswellaspoorpay.
Theneedforlaborwassubstantial,butitwasoneoftheonlywaysapoorman
couldmakehisdue.InGeorgeEMcNeilsTheLaborMovement:Theproblemof
Today,published1887,McNeilstressesmanyofthenegativeinfluencesof
corporationleaders,evencomparingthemtotheShahofPersiaandSultansof
Turkey.McNeilstressesthattheseleadershadtheabilitytoreducewages,
dischargeemployeeswithoutcause.Corruptmoralsenseofthecommunity,and
andevencontrolthelaw.McNeilstatesInhisrighthandheholdsthe
governmentinhislefthand,thepeople.McNeilsstatementwasveryfluid
regardingthesebusinessleadersandtheirinfluenceofpower.Hisstatementsof
controlofsupplyanddemandcanlargelyvouchforthefactthatthesemenhad
businessintheircontrol.Andhisstatementregardingthecontrolofgovernment,
canbesomewhatfrightening.IneconomistDavidA.WellsRecentEconomic
ChangesandTheirEffectontheProductionandDistributionofWealthandthe
WellBeingofSocietypublished1889,Wellsdiscussestheconflictsof
individualismintheworkplace.WellsstatesPeopleWhoworkinmodern
factoryaretaughttodoonething...andwhenthereisnomoreofwhatkindofwork
todo,theyareinameasureofhelpless...Individualismorindependenceofthe
producer...hasbeeninagreatdegreedestroyed.Wellscontinuedtodescribehow

theprideoftheworksmanhadbeentaken.Thismayhavebeenoneofthemost
devastatingresultsoftheruleofcorporations.Thelaborers,thehardworking,were
treatedlessthanhumane,strippedoftheirpride.ManysharedMcNeilsandWells
viewsoncorporationscontrolinthegovernment,includingPoliticalcartoonist
JosephKeppler.Ina1889cartoontitledTheBossesoftheSenateKeppler
imagesmultiplebusinesstrust,forexample,steeltrustandstandardoil,asbeingin
controlofthesenate.Atthetime,monopoliesruledtheeconomy,andthesetrusts,
representedaslargemen,weretrulyinpower.Thesemenhadtheeconomyin
therehands,andwithcontroloftheeconomy,theyhadtheirfairshareofpowerin
politics.
Ofcourse,notallofthewealthywerenecessarilypowerhungry.Andrew
Carnegie,aScottishAmericanindustrialistwholedtheenormousexpansionofthe
Americansteelindustry,hadamadeastatementintheNorthAmericanReview,
titledWealth,inwhichhediscussesthedutyofawealthyman.Carnegiestates
thattheroleofwealthistofirst,setanexampleofmodestliving:provide
moderatelyforthelegitimatewantsofthosedependentuponhimtoproducethe
mostbeneficialresultsforthecommunityCarnegiedescribeshimselfasa
brethrentothepoorer,statingthattherichhaveanobligation.Carnegie,inhislife,
hasbeensaidtogibeover350millionincharity,whichcangreatlyshowthe
generositysomeofthewealthycanposses.Notallleaderswereinreachofpower.
Ofcourse,Carnegiehadhisshareofconflictsregardingworkplacesafetyandother
industrialissues,buthewasagoodexampleofamademan,withwealthandstatus
thathadopposedtodogood.
TheAmericanpeoplehadrespondedtothechangesbroughtbybig
businessesmostlywithhatred.Buttheyweretrueintheiranger.InGeorgeRices

HowIWasRuinedbyRockefeller,publishedintheNewYorkWorldin1898,
RicestateshowhewasbutoneofmanyvictimsofRockefellerscolossal
combination.Ricehadgivenhisstoryofhisownoilcompany,OhioOilWorks,
andhowitwasravishedbyRockefellaslowprices.Helaterfoundoutthatitwas
duetoThecompaniesunfairtreatmentbytherailroads,givingRockefeller
privilegesagainstalloutsidecompetitors.Ricewasanobviousvictimoftheissue
ofemployeesatthetime,withthestandardoilcompanybeingoneofthemultiple
largebusinesses,hurtingthesmallerestablishments,withunheardprivilegesand
wealth.
TheGildedAgewasacoverforconflict,resonatedbytheindustrial
movement.Itwasatimeshownastechnologicalandindustrialinnovation,whenin
reality,wasademeaningperiodofpoortreatmentofthenation'slaborers,andever
growingthirstforwealthandpower.Bigbusinessesruledthebranchesof
economy,controllingsupply,demand,buyingoutsmallerbusiness,andkilling
competitorswithunheardprivileges.Thefundamentalstrifeofwealthwasalso
consultedwithhungerforpowerandpoliticalinfluence.Withtherapidgrowthof
theseeverravenousbusinesses,cametheoutcryofthepublic.TheAmericanlife
wastakenoverandchangedatthetime,latertobereformedintothenationwe
knowtoday.