test 1 Flashcards

Question

Carnegie

Answer 1

Dominated iron and steel industry American success story -came to US as a small child from Scotland -Became one of the richest men in the world Used economies of scale -lowest cost to produce -undercut competition -replaced equipment frequently to prevent loss of stop in production -when equipment stops working at %, replace it -Capital investment on equipment paid for itself by keeping production at % (payback period) Unstoppable due to economies of scale and vertical integration

Answer 2

One firm controls all necessary steps in production and distribution -own everything needed to produce, manufacture, and distribute -raw material, transportation, production, and distribution network Economies of Scale principles linked to vertical integration -create self contained environment -no outside influence

Answer 3

Offers to buy some of Carnegie's firms -begin negotiations -better part of billion dollars in 1901 money -accepted buy-out -Morgan was prepared to go higher Morgan puts several steel companies together creating largest industrial enterprise on Earth -US steel

Answer 4

By 1880s controlled 90% of the countries refineries Rockefeller Standard and Oil -before automobile, oil used for energy (kerosene) -right man, right place, right time In Cleveland and see's oil boom in west Pennsylvania -sees boom and bust pattern in oil -builds small, highly efficient refinery Ruthless business owner/competitor No regulations or laws in place at this time -monopolistic conditions take control -no checks and balances on pricing Economies of scale -once the market is owned, you become very efficient -then you can offer quality product at a reasonable price

Answer 5

One firm controlling all of the firms in the industry | -If you control all the firms, it is a monopoly

Answer 6

Trust form of business organization -Standard oil combines small companies into one large company -set up board of trustees to run corporation -control the stock of the company -Hides the relationship between the companies -public sees multiple companies Gives the corporation stability and eliminates competition "Stability and order" -public relation campaign set up to avoid attacks and hatred -eliminated price gouging/supply and demand -makes prices stable Received kickbacks from RR companied for shipping on their railroad -discounted rates for high volume of shipping -took competitions rebates as well -under the table payments

Answer 7

``` Mark Twain placed the term/label on the time period -Gaudy, materialistic, excess Time of conspicuous consumption -people have so much money, they don't know what to do with it -spend money to awe observers Bradley-Martin Ball -extravagant affair in NYC -costume ball - historical figures -some costumes 10,000 or more in price -made the front page of newspapers -occurred during the worst depression in the US to date Multiple Houses/Mansions built -summer homes, living homes, cottages -separate building for child quarters ```

Answer 8

Positive view to rise of big business and Gilded Age Application of Charles Darwin's theory of evolution and natural selection to society -"Survival of the fittest" -by natural law, everything worked out the way it should and the strongest survive -defends the status quo -do not get involved in reform or helping others Compared to Darwinism in the natural world In social world, natural selection leads to progress -people did not want to interfere with progress Industrial elite supported social Darwinism -Sumner, a Yale professor big proponent -few have money and live in luxury -price to pay for progress Charles Darwin appalled his theory being applied to the social world Many were not hardcore social Darwinism believers -Carnegie gave most of his money away after being purchased by Morgan -set up free public library for people to improve themselves

Answer 9

early regulations -RR largest industry in America, brings in the most revenue -more revenue then federal government -becomes first target of reform Felt government has no business interfering with business practices -private property and private business Most Americans still farmers -upset over cost of using railroad -ask government for help fighting RR -farmers had to deal with one RR for transporting goods -RR had monopoly and priced transportation accordingly -farmers felt ripped off -asked state legislature for help -long haul practices got farmers attention -long hauls cost less then shorter trips RR defended practices by economies of scale -more people use long lines, charge less -have higher cost for short, independent lines (used by less people) A lot of farmers involved in asking for help

Answer 10

regulate elevator storage rates regulate freight rates RR responds by going to court -claim intervening in business is un-American

Answer 11

railroad freight regulation case state legislation cannot regulate business corporations involved in interstate commerce power to regulate interstate commerce lies with congress

Answer 12

``` RR reformers turn to congress 1st federal regulatory body Interstate Commerce Committee -Primarily set up to reform railroad -ensure railroad rates are reasonable and just -ruled in favor of the railroads Initially ICC does not have much impact ```

Answer 13

long hours, low pay, dangerous conditions, child labor can ask government for help and/or organize and unionize Business practices are unregulated Conditions so poor, unions should have started earlier and spread faster then they did

Answer 14

Myth of mobility -work hard and save money, you could end up in the millionaires club -does happen, but not on a large scale Americans then and now do not have an accurate sense of how upward mobility happens -Known as the American dream -encouraged to keep workers working hard, without revolt, believed it could happen to them Individualism -Did not think they would be stuck as a worker forever Diversity of the American work force --employers hired divers workers to keep work force divided -race, ethnicity, beliefs Bitter employer opposition -unions violate the laws of nature -employers against unions violated social Darwinism theory

Answer 15

First major strike in American history -nationwide strike Turns attention to the labor problem Hits the biggest industry in America at the time Leads many Americans to realize they are facing conditions they have never seen before -class warfare Series of wage cuts cause workers to strike -strike spreads -approximately 2/3 of the nations rail system shut down -arteries to the economy shut down Enormous amounts of violence and property destruction -railroad houses, stations and roundhouse's destroyed -Lives lost Fear nation may be on the verge of a revolution -Federal troops sent in, strike smashed

Answer 16

Pittsburgh homestead for Carnegie company Iron and steel workers strike for better pay and right to organize Carnegie left the country during the strike -Stayed at his castle in Scotland -Preached enlightened view in right to organize, but failed when tested Frick left in charge of company -Very unenlightened -called in strike breakers -called in private army of hundreds of Pinkerton detectives via river -violent battle erupts, strike smashed within 6 months Stunning blow for basic heavy industry regarding unionizing

Answer 17

Company town outside of Chicago -Model town ran by George Pullman Made product with household name -Pullman Cars (Sleeper cars) After a series of wage cuts, workers strike -Strike spreads to railroad Pullman made the cars, and operated the cars on the rail -rail workers go on strike to support other workers -Workers were predominantly black -Approximately 2/3 of the western railways shut down during the strike Federal troops sent in and the strike was smashed -Court order issued stating strike is illegal -American Railway Union is involved --led by Debs If strike does not stop, leaders were to be arrested -Stated strike violated Sherman Antitrust Act -Act set up to stop/restrain commerce -first time act is effectively enforced -Debs is jailed as a democrat, but returns as a socialist

Answer 18

first major, emerging union joined together due to skills being threatened with the spread of machinery -sense of upward flow being broken and stopped Leadership of the union did not believe in striking -did not believe wage earning class exists is America, only in Europe -Virtually everyone welcome in the union, including women and blacks -Union implodes due to no strike practice Led by Powderly

Answer 19

Led by Gompers, had a different philosophy then the Knight of Labor -approached organization of laborers differently -accepted big business, capitalism, individualism, and a permanent wage earning class Wanted concrete (material) gains for the workers -"Bread and butter" unionism -better pay, conditions and hours -did not want to overturn the system, just a bigger piece of the pie Organized by skill, not industry -various unions joined under one umbrella -focused on skill workers (elite) -Gompers understood you cannot organize unskilled workers --replaceable --have no leverage Will get what they can, for those they can -narrow and limited focus -union triumphs -Becomes the biggest union in the country Leaves mass of industry wage workers out of the union -leaves door open for other unions

Answer 20

``` Semiskilled and unskilled workers -"Wobblers" Radical unionism -large focus -for a period of time was a large force to be reckoned with -preach revolution -many strikes Government has a large part in ultimately smashing IWW ```

Answer 21

Surge of immigrants to America -Approximately 25 million people came to the country -even with large flow of immigrants, percentage of immigrant population remained virtually unchanged Children born to immigrants in America were considered American citizens Not all of the 25 million immigrants stayed in America -many came to work, then return to their home country Visibility of immigrants is changing -coming to America, taking our jobs

Answer 22

Significant change in the 1880s -massive shift in Europe where the immigrants are coming from -southern and eastern Europe lead large wave of immigration Prior to 1880s northern Europe had large waves of immigration -northern Europe is industrializing -less need for people to leave the country Southern and eastern Europe are still farming countries -not as advanced industrially -lower standards of living -want to leave for a better life -agriculture collapse in southern Europe, cannot compete with American farming

Answer 23

Old immigrants from northern Europe New immigrants from southern and eastern Europe -Americans live in a hyper conscience racial society -small differences are not that small -not Anglo-Saxon -may not be fit for American inclusion -had different religious views, Americans upset new immigrants are not protestant Make pilgrims and thanksgiving a big deal -try to give immigrants something to look up to -pilgrims were protestant Native born Americans saw new immigrants as inferior -lived on land as peasants -lived in small villages in traditional garb -once in America, style of living and garb go unchanged

Answer 24

Anti-immigrant sentiments Doors to European immigration remain wide open -In the 1900s, 60% of laborers were foreign born -Europe was industrializing, Americans needed cheap labor Large numbers of Chinese immigrants come to America -predominantly in the west coast -White, native born workers were anti-Chinese -feared wage standards will drop large anti-Chinese sentiment leads to exclusion act

Answer 25

Lumps together Chinese, idiots, and lunatics - bans any from entering the country - belief is Chinese are racially inferior - caused by fear of immigrants

Answer 26

Cities growing so fast, they are choked with high numbers of poor people -with increase, basic social services struggled -sanitation, paving the streets Cities filled with high numbers of poor people -real estate prices rise -land rented in smaller and smaller spaces -massive overcrowding of tenement slums

Answer 27

``` rise of tenement neighborhoods -dumbbell tenement becomes popular -4 apartments per floor, 8 stories high -leads to subletting and sleeping in shifts Approximately 1000 people per acre in Manhattan -mass overcrowding Cities ran by party bosses, republican and democratic -corrupt/buy-offs -not reformers, but politicians -wanted political power Machine government -ran cities with an iron fist Immigrants supported government -leaders gave favors for support -collected favors during election times -padded votes with deceased immigrants -controlled the election machines Native born saw political machines -did not like them, blamed immigrants ```

Answer 28

expansion and decline -tremendous expansion during this time, but small farmers are declining -rising costs, declining prices -prices farmers receive for their crops is declining --leads to more production, overstock, and even lower prices -costs off the farm rise for machinery, railroads, oil, power, fuel --more money to industries and big business -farmer status is declining --hicks, hayseeds, people that have been left behind by their city cousins farmers turn to political parties for assistance -political parties little to no help

Answer 29

Status quo is just fine -do not want to challenge corporations Two burning issues -tariff and money question Tariff -tax on imported goods, usually a high tax -helpful if you produce the same goods domestically -not helpful for farmers that must buy off the farm products Money Question -how much money should be in circulation -deflation, specifically in farming -less money to farms -as a class, farmers are huge debtors -expansion funded by borrowed money, sharecropping still occurs -income going down, the value of money increasing --farmer/debtor with decreasing funds, the farm will go under -increased revenue for banks and wall street Debtors wanted increased money supply -believed wall street was keeping money supply artificially low by holding and backing money with gold -deflation crushed debtors -big guys win, little guys lose

Answer 30

Farmers organize and start a social organization -rapidly expands originally set up to combat social isolation on the farm

Answer 31

grass roots organizations -more radical the Grange -realize grange will not be enough to affect change -farmers stream into alliance --white and black, even in the south Recommend deposit crop into government warehouse -receive payment up to 80% of the value for the crop in scrip (paper money) -can use money (backed by crops) to pay down their debt -plan shot down, deemed too radical farmers further radicalize -feel neither political party cares about them -form the populist party

Answer 32

People's party -farmers break off and create their own party Silver -wanted money backed by silver -bi-metal money system Platform -graduated tax system -shorted work days, 8 hour federal regulations -change in money supply -wanted to appeal to farmers and laborers --limit corporate powers -appeal to the average person --very large amount of wage earners and laborers Party grows rapidly in 1890s -hard hit people of depression of 1893 stream into party Democratic party moves in and steal populist party's thunder -still farmer based -solid democratic white south -Jim Crowe laws in south strip blacks right to vote, done to stop populist party -takes up cause to use money backed by silver

Answer 33

Democratic nomination William Bryan -farmer from Nebraska -not a populist candidate, but speaks to the party -takes up cause of coining silver Populist party faced with a decision -stick with their party, or vote for Bryan -Bryan not pure populist -Decide to back Bryan Bryan tours country, giving speeches from the back of trains Republican nominee William McKinley -McKinley makes speeches from his porch in Ohio -traveling like Bryan is undignified -Develop huge amounts of money for the election -big business back McKinley -McKinley prints more pieces of literature then there are American people to give Americans Close election, Bryan get 48% of the popular vote Turning point -old America (farmers) vs. New America (Big Business) -after election, depression begins to go away -more gold discovered leading to an increased money supply The end of the populist party came with te defeat of Bryan

test 1 Flashcards

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