Exam: chapters 1-4 Flashcards
(41 cards)
- Evaluate the economic impact of the Industrial Revolution on America in the late 19th century. What were its advantages and disadvantages?
Inventors and businessmen dictated the country’s direction. With such large improvements in technology standards of living increased along with life expectancy. However, a large class divide was present during the movement. The Industry heads got to bask in all the new luxuries of the time while the poor worked in hard conditions below them.
- Identify, briefly, the origins of the early Industrial Revolution. Where did it begin and when did it spread to America?
The Industrial Revolution began in England in the 18th century. It spread to America after the War of 1812 when they were temporarily cut off from British trade.
- Identify some successful traits of American industry prior to the Civil War and after.
American industry pioneered interchangeable parts and mass production in a variety of goods. Improved agricultural implements led to increased crop yields. Then, the Civil War catalyzed industry with increased demand for railroads and contractors to make war equipment. After the war, American industry was fueled by hard-working immigrants, abundant natural resources, and innovation.
- Identify Thomas Edison and some of his main inventions.
Thomas Edison was a genius inventor and businessman. He invented/patented the light bulb, phonograph, rechargeable nickel-iron batteries, X-Ray, mimeograph, and movies. His greatest contribution though, was his system of invention: a research and development lab with staff who all earned shares in the company while sharing ideas. -Innovation is most successful as a group effort
- Analyze how finance affected technological innovation in the late 19th c. and vice-versa.
Financiers funded inventors of the late 19th century. Charles Dow’s index and daily paper tamed the stock market a bit and increased its popularity. As more people became invested in the stock market, the funding of many new industries and firms increased. This encouraged more innovation and the financiers benefitted from the success of the industries.
Edison’s stock ticker
- Identify Nikola Tesla and describe the War of the Currents between Edison and Tesla and their respective financial backers. Why are High-Voltage Direct Current (HVDC) transmission lines poised for a comeback?
Nikola Tesla was Thomas Edison’s former employee. His patron, George Westinghouse backed alternating current (AC) while Edison’s financial backer, J.P. Morgan, favored the direct current (DC) approach. Both sides tried to convince the public that their system was safer and the other would cause unnecessary deaths. AC proved to be more effective, so Tesla is credited as the developer of the grid system that powers America’s economy today. However, DC is used for a variety of household items and Edison’s high-voltage direct current lines (HVDC) are poised for a comeback because they’re practical for transmitting solar and wind power over long distances.
- Explain what modern economists mean by the phrase “hype cycle.”
The hype cycle describes the theory of how emerging technologies mature through five phases: Technology Trigger-> Peak of Inflated Expectations-> Trough of Disillusionment-> Slope of Enlightenment-> Plateau of Productivity. It is not a consistent pattern, but it is useful for clients to back up their investing insight.
- Describe how the patent system impacted the airplane industry.
Legal concerns preoccupied aircraft engineers so much that progress in aviation was slowed.
- Summarize the ways that railroads changed American life in the late 19th century.
Trains were the dominant mode of transportation and the heart and soul of the American economy in the late 19th century. They moved products around, allowing companies to grow and were primary customers for steel, timber, and coal. Additionally, they made men rich, created a huge labor market, and led to other industries that relied on travel (ex: salesmen, circuses, etc.). Political campaigning was changed as well, now that candidates could crisscross the country on “whistle-stop” campaigns. Railroads were America’s first big industry. Also, ideas, information, and entertainment spread on rails along with goods and commerce. Lastly, railroads gave people access to better nutrition with refrigerated transport and more food options and Americans got taller.
- Explain why Chicago was well situated to take advantage of the emerging intermodal system. Identify Richard Sears and some ways that he was a forerunner to today’s retailers. Also, describe how Clarence Saunders redesigned retail stores.
Chicago’s location at the southwestern corner of Lake Michigan, western-most among the Great Lakes, made it a natural hub for western railroads. It is an example of a great intermodal system as cargo often was transported by both ship and rail. It was America’s stockyard and lumberyard and many retail businesses shipped from Chicago to rural communities.
Richard Sears started selling pocket watches but then to nearly everything commercially available. He understood that economy of scale allowed him to undersell local merchants. Sears
Was also detail-oriented. He observed small human behaviors and used his observations to sell his products more effectively. Sears warehouses presaged the bulk stores of today and the assembly line system implemented by Henry Ford.
Clarence Saunders reinvented interior food retailing starting in 1916. Instead of customers placing an order at the counter as before, Saunders brought the stock out into the open and had the customers collect it themselves.
- Identify important ways that Andrew Carnegie & John D. Rockefeller pioneered American business and their own industries.
Carnegie built his own steel plant outside Pittsburgh, Pennsylvania. Instead of pocketing his profits, he put them back into researching ways to make stronger steel and stay ahead of the competition. He researched the Bessemer process of mass-producing steel and imported Bessemer technology to his plant in Pennsylvania. Carnegie steel built Louis Sullican’s first skyscrapers in Chicago and the Brooklyn Bridge. He and John D. Rockefeller gave back to society in the form of philanthropy; they built concert halls, libraries, hospitals, etc. Both also took advantage of economies of scale by buying up the entire process of production instead of spending their profit paying others to get the materials for them. They minimized their overhead as best they could through vertical integration
- Differentiate between vertical and horizontal integration. Identify some examples in today’s market of attempts at vertical integration. Describe how, sometimes, monopolies (or at least economies of scale) can actually benefit consumers.
Vertical integration is when a company owns all the means of production, minimizing their overhead costs, while horizontal integration is when a company captures the majority of the market for that product/service (monopolizing a sale). If a fast-food chain bought cattle ranches, potato farms, bakeries, and delivery trucks that would be vertical integration. Economies of scale can allow the monopolizer to lower costs of a product which benefits consumers.
- Describe generally (in 4-5 sentences) how political machines operated in the late 19th century. Identify the role of the ward boss within the political machines.
The Republicans spurred industry but didn’t cater to the masses of workers who made the engine run. In the late 19th century the Democratic Party supported the Ku Klux Klan in the South while, in the North, they helped and campaigned among the very Catholic, Jewish, and Eastern European immigrants the Klan hated. A ward boss or local precinct captain was a foot soldier for the Democratic Party and greeted the newly-arrived immigrants. They offered to help the families settle and begin their new life in America, if they would vote Democrat in exchange.
- Identify the concepts of graft, kickbacks, and racketeering. What are some potential drawbacks of one-party political rule?
Politicians looking to line their own pockets would graft-skimmed profit made possible by controlling the municipal government (city hall, police, utilities, etc.). Politicians in charge of dispensing contracts to construction companies expected kickback from winning bidders- enough to pay others to look the other way and keep the rest for themselves. Racketeering can refer to any type of organized crime (extortion, gambling, prosititution, drugs, etc.) and thrives in societies with corrupt or weak local governments. Gangsters threatened unions to vote a certain way and in return, politicians wouldn’t interfere with the criminals’ illegal schemes. These unlawful strategies used by political machines are made possible by one-party political rule and corrupt/weak law enforcement.
- Describe why American labor unions were relatively weak in comparison to other countries in the Gilded Age (Late 19th & Early 20th Centuries).
Laborers could unionize but management could fire the workers or break up strikes with force. Unions lacked the legal right to collective bargaining: management wasn’t compelled to negotiate with unions. The government maintained a mostly hands-off policy toward business, they were willing to intervene in strikes on behalf of management. American workers had less leverage than those in other countries because of the abundance of immigrants willing to work for lower wages.
- Identify Democratic Socialist Eugene Debs and analyze what his career tells us about the American political spectrum in the Progressive Era. What overall political situation allowed third parties to fill in the void on the left part of the political spectrum? Compare and contrast how the textbook describes democratic socialism as practiced today in Europe and Canada with the opening paragraph of the Wikipedia entry on democratic socialism.
Democratic Socialist Eugene Debs favored 40-hr. workweeks, child labor bans, and the right to unionize. He started the Democratic Socialist Party of America in 1901. The Democratic Socialists never had any real power in America, the American political spectrum was primarily between the Democratic and Republican parties. The left favored more government intervention on behalf of workers and consumers while the right favored free-market economics with less government interference. The government continuously siding with management and turning a blind eye to the needs of laborers is what allowed third parties to enter on the left part of the spectrum. The textbook describes modern socialism that uses voting to regulate a capitalist economy that benefits all rather than a few. The Wikipedia entry on democratic socialism has less of an angle, stating what the philosophy usually stands for or focuses on instead of how it’s beneficial to society or where it comes from.
- Summarize how Populists affected the mainstream political system. Identify Tom Watson and what he teaches us about the Populist movement.
The Populists emerged in response to exploitive railroads and banks. They were the first grass-roots political party in the U.S. and illustrate the potential of participatory democracy and its limits. Never actually won the presidency or control of Congress, but eventually influenced Democrats and progressive Republicans to endorse some of their ideas: national income tax to redistribute wealth, railroad and bank regulation, and the first major regulatory agency (the Interstate Commerce Commision). Populists also influenced the 16th (Federal Income Tax) and 17th (mandated direct election of senators) amendments and supported private (secret) ballots so that voters couldn’t be intimidated, bribed, or charmed at the voting booths. Additionally Populists advocated public ownership of telephone-telegraph companies and brought about direct democracy for the first time in US history.
Tom Watson was a prominent Georgia Populist, editor, Senator, and Democratic vice-presidential nominee. He harbored a special form of xenophobia and teaches that the Populist movement was anti-immigration as the immigrants willing to work for lower wages displaced the Americans formerly in the positions.
- Identify William McKinley and describe why the 1896 election was a watershed election in American history. How did it affect the near-term future for Americans? Explain how measures the two main parties took to make the country less democratic inadvertently made it more democratic in the long run.
William McKinley was a Civil War veteran and Republican party member that defeated William Jennings Bryan in the 1896 and 1900 elections. The 1896 election was a watershed election in American history because it signaled the two-party system’s entrenchment or firm establishment and led directly to secret ballots (private voting). It affected future Americans by making society more worker-friendly.Gilded Age voting restrictions like literacy tests or racially sealed-off caucuses enacted by the two parties to make the country less democratic made it more democratic in the long run by introducing primaries and inclusive caucuses that give Americans greater say in choosing their leaders.
- Explain the ideological motivations for American expansion overseas in the 19th century.
Americans wanted access to trade in Asia and the resources there and in other areas like Alaska. However, nineteenth-century expansion primarily played out under the idea of Manifest Destiny- the belief that God destined white Protestants to dominate inferior Native Americans, Mexicans, and Asians to spread their way of life and satisfy their need for economic growth.
- Summarize Americans’ colonization of Hawaii and explain their justification for overthrowing the Hawaiian government. Differentiate, on general terms, between America’s policies toward Hawaii, Japan, and Korea.
Hawaii started feeling Manifest Destiny’s impact when Protestant missionaries set out to convert Hawaiians to Christianity and assimilate them to other aspects of their culture. They asserted their power there and began outlawing the native traditions of the Hawaiian people. Americans slowly started gaining more power in place of the troubled government and because it was a monarchy, they eventually overthrew it in the spirit of the American Revolution. Later, motivated by America’s need for a mid-Pacific fueling station, Hawaii became a U.S. territory in 1900.
America’s policies in Japan and Korea were directed at initiating trade, not conquering or territorializing any area. However their actions, especially in Korea, began more aggressively than in Hawaii.
- Analyze the connection between the domestic economy and foreign policy and America’s practical motivation for expansion in the late 19th century.
America’s annexation of Hawaii and expansion into the Pacific connected to a major recession, the Panic of 1893 where it became apparent that the U.S. was outproducing itself in farming and manufacturing. The U.S. needed access to overseas markets and William McKinley won the 1896 election promising farmers and factory workers foreign markets.
- Identify Alfred T. Mahan’s influence on American foreign policy. What country, for Mahan, best exemplified the model/formula for “sea power?”
Mahan explained how having a strong Navy would be important to America’s future and market access. Now our foreign policy was accounting for ship maintenance and refueling harbors as well as access to key canals. Mahan advised specifically that the U.S. attain Caribbean islands (Puerto Rico, Cuba) to defend a canal across the Panamanian Isthmus. Britain best exemplified the model for sea power.
- Identify Teddy Roosevelt (aka TR) and describe his rise to prominence during the war.
Teddy Roosevelt succeeded McKinley when he was assassinated. They both wanted to expand America’s military and commercial horizons overseas. Teddy Roosevelt modified Manifest Destiny with a version of Social Darwinism. Growing up, he had asthma and was motivated by his desire not to die young to engage in relentless physical action throughout his life. Roosevelt saw war as a healthy enterprise to toughen up young males and dreamt of war with Germany or Britain to prove himself on the battlefield. He was a jingoist and his chance to rise to prominence came during the Spanish-American War of 1898. He formed his own cavalry regiment, the Rough Riders, making sure to get his troops filmed at every opportunity. Roosevelt was proud that his regiment lost more than any other and was bummed that he did not come home with a bad injury. His heroics catapulted him into the vice-presidency two years later and then the presidency in 1901 when McKinley died.
- Summarize America’s relationship with Cuba after the Spanish-American War.
America did not want to fully free the Cubans after the Spanish-American War because they just realized that most rebels were black and didn’t think they were capable of self-government. The U.S. essentially set up a puppet state in Cuba that allowed them to siphon export profits, build military bases on the island, and maintain control over Cuba’s choice of leadership.