Economic Transformation of the Gilded Age (1865–1898)

Gilded Age

A term coined by Mark Twain to describe a period that appeared glittering on the surface but was often corrupt or decaying underneath.

National Market

A massive, integrated market created after the Civil War, largely driven by the development of transcontinental railroads.

Pacific Railway Act (1862)

Legislation that provided federal subsidies in the form of loans and land grants to companies for building the transcontinental railroad.

Subsidies

Financial assistance provided by the government to support a specific industry or economic activity.

Four Standard Time Zones

Established in 1883 to manage train schedules; necessary due to the expansion of the railroad system.

Bessemer Process

A method to produce steel by blowing air through molten iron to remove impurities; revolutionized steel production.

Laissez-Faire Capitalism

The economic philosophy advocating minimal government interference in the economy, allowing market forces to regulate prices and wages.

Social Darwinism

A belief that wealth and success are indicative of superiority, akin to 'survival of the fittest' in biological terms.

Gospel of Wealth

An essay by Andrew Carnegie arguing that the wealthy have a responsibility to use their fortunes for philanthropic purposes.

Vertical Integration

A business strategy where a company controls all stages of production, from raw materials to distribution.

Horizontal Integration

A strategy where a company acquires or merges with its competitors to create a monopoly.

Trusts

Legal arrangements in which stockholders of various companies assign their stock to a board of trustees to centralize control.

Holding Companies

Companies created to buy and control other companies' shares, wielding influence without owning the companies outright.

Knights of Labor

A large labor organization founded in 1869 that welcomed all workers and aimed for broad reforms but declined after the Haymarket Square Riot.

American Federation of Labor (AFL)

An association of skilled craft unions founded in 1886 that focused on higher wages and better working conditions.

Great Railroad Strike of 1877

A nationwide crisis triggered by wage cuts, marking a precedent for government intervention in labor disputes.

Homestead Strike (1892)

A violent labor dispute at Carnegie Steel, resulting in the defeat of the union and a setback for labor movements.

Pullman Strike (1894)

A widespread railway strike led by Eugene V. Debs, which was forcibly ended by federal troops.

Child Labor

The employment of children in industries like textiles and mining, often driven by economic pressure on families.

Efficiency Formula

A measure of productivity defined as total output divided by total input.

Captains of Industry

Business leaders viewed as innovative and contributing positively to the economy.

Robber Barons

Business tycoons accused of unethical practices to amass wealth, often by exploiting workers.

Tariffs

Taxes on imported goods intended to protect domestic industries from foreign competition.

Philanthropy

The act of donating money or resources to promote the welfare of others, particularly through community projects.

Haymarket Square Riot (1886)

A labor protest in Chicago that ended in violence, adversely affecting the public perception of labor unions.

Sherman Antitrust Act (1890)

A federal law aimed at combating monopolies, though initially misused against labor unions.