US History: Sherman Antitrust Act & Industrialists

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Questions and Answers

What is the primary purpose of labor unions?

To limit worker rights and benefits

To increase the workload on individual workers

To reduce the number of workers in an industry

To improve working conditions for their members (correct)

What was a significant outcome of the Homestead Strike?

A 20% cut in workers' pay (correct)

A violent conflict involving the military

The establishment of a new labor union

A major increase in railroad freight rates

What role did 'scabs' play during labor strikes?

They supported the strikers with financial aid

They organized the strikes

They served as replacement workers (correct)

They negotiated on behalf of the workers

Which of the following best describes the impact of political instability on social class movement?

It restricts social mobility among social classes Signup and view all the answers

Which historical event involved 80,000 workers refusing to work to demand better conditions?

The Railroad Strike of 1877 Signup and view all the answers

What was prohibited to promote competition in the marketplace?

Monopolistic practices Signup and view all the answers

What characterizes a trust in business?

A collection of businesses working together to control a market Signup and view all the answers

Which philosophy suggests that only the fittest individuals will succeed in business?

Survival of the fittest Signup and view all the answers

How did the federal government generally support the railroad industry?

By providing land grants for construction Signup and view all the answers

Which of the following best describes the role of industrialists in society according to contrasting perspectives?

They were viewed as both benefactors and exploiters. Signup and view all the answers

What type of industry was specifically mentioned as benefiting from government support?

Railroad Signup and view all the answers

What was a key implication of the quote regarding the American Beauty Rose?

Growth and survival sometimes require sacrifices. Signup and view all the answers

What was one of the consequences of laissez-faire policies in business?

Unregulated business expansions and practices Signup and view all the answers

What characterized the Gilded Age in America?

An increase in industry and urbanization Signup and view all the answers

What was the primary factor that led to rapid urbanization during the Gilded Age?

The migration of people from rural to urban areas Signup and view all the answers

Which invention is associated with the industrialization during the Gilded Age?

The telegraph Signup and view all the answers

What does vertical integration refer to in a business context?

Controlling all factors of production Signup and view all the answers

What was the primary reason immigrants moved to the United States during the Gilded Age?

To seek jobs and opportunities Signup and view all the answers

What role did natural resources play in the economic expansion during the Gilded Age?

They were utilized to expand manufacturing industries Signup and view all the answers

What impact did the Gilded Age have on American demographics by 1920?

A majority of Americans resided in urban areas for the first time Signup and view all the answers

What economic policy is defined by minimal government intervention in business?

Laissez-faire Signup and view all the answers

What action did President Hayes take in response to the strike?

He sent federal troops to major cities. Signup and view all the answers

What was the approximate cost to repair the damages caused by the strike?

$10 million Signup and view all the answers

What was the outcome of the conflict between police and labor activists in Haymarket Square?

8 men were convicted without evidence. Signup and view all the answers

Which group did the governor of Pennsylvania send to protect the strikebreakers?

8,000 members of militia Signup and view all the answers

What term describes the prevalent discriminatory attitudes against immigrants during this time?

Xenophobia Signup and view all the answers

How many fatalities occurred during the clash at Haymarket Square?

1 civilian and 7 police officers Signup and view all the answers

Which industry was NOT mentioned as being dominated by wealth during the Gilded Age?

Textiles Signup and view all the answers

Which individual was associated with the oil industry during the Gilded Age?

John D. Rockefeller Signup and view all the answers

Study Notes

Sherman Antitrust Act

Prohibited activities that restrict interstate commerce and competition
Outlawed trusts and monopolies
- Trust: Organization of businesses in the same industry, forming a group that controls production and distribution for less competition
- Monopoly: Businesses that control a specific sector of the economy, including prices

Philosophy that only the fittest survive in business and society
Those with a successful business are the strongest, as well as individuals who are naturally better, smarter, and fit for society

Laissez-Faire Business

Businesses grew unregulated with limited government intervention
Government broke strikes in favor of business
The federal government gave land grants to help the railroad industry build the railroad

Industrialist Perspectives

Were honest, philanthropic businessmen who created markets, improved society, and created jobs
Were ruthless businessmen who manipulated the government, exploited workers, and swindled investors

Key Terms

Gilded Age: The time in America between Reconstruction and WWI with an increase in industry, urbanization, and immigration
Industrialization: growth of industry and machinery used in production
Urbanization: The growth of cities due to people migrating from rural areas to cities
Immigration: Many people migrated to the US, most settling in cities
Between 1870 and 1920, 11,000,000 people migrated from rural to urban areas
By 1920, more Americans lived in cities than in rural areas for the first time in US history
Reasons for the increase in population in cities include new inventions such as cars, Bessemer Process, and the telegraph
Issues that arose from the rapid growth of cities included:
- Labor
- Capital
- Land
- Natural Resources

Business Strategies:

Laissez-Faire: Government should interfere as little as possible with businesses
Vertical Integration: Business controls all factors of production (ex. coal mines - trains - shipping)
Horizontal Integration: Business strategy involves buying competing companies (ex. oil field - oil field - oil field)

Immigration

Immigrants came to America for jobs and land after the Civil War
Opportunities for immigrants included:
- Democracy
- Availability of:
  - Land
  - Jobs
  - Social Mobility
Challenges faced by immigrants included:
- Wars
- Political tyranny and instability
- Limitations:
  - Social class movement
  - Religious freedom
  - Land Ownership

Labor Unions

An organization of workers who have a collective interest in improving their working conditions
Union examples include the American Federation of Labor and the Knights of Labor
Unions used strikes to get industrialists to meet their demands
- Strike: Laborers refusing to work until their demands are met
- Scabs: Replacement workers
Strikes include:
- The Railroad Strike of 1877: 80,000 workers went on strike, damaging equipment and blocking service to 2/3 of railways
- The Homestead Strike: 10,000 steelworkers went on strike due to a 20% pay cut
- The Haymarket Riot:
  - Labor activists protested the killing of workers by police during a strike a day before
  - There was a protest of around 2,000 people near Haymarket Square
  - Chaos erupted when police reached the crowd and an individual threw a bomb.
  - 7 police officers died and one civilian.
  - There was xenophobia against German immigrants.
  - 8 men labeled as anarchists and believed to be connected with the bombing were convicted without evidence.
  - 4 of the men were hanged and 1 committed suicide before his hanging

Wealth in America

By 1897, the top 4,000 families in the US (representing less than 1% of the population) had about as much wealth as the other 11.6 million families (99% of the population)
The wealth of some prominent business leaders included:
- Rockefeller (Oil): $409 Billion
- Carnegie (Steel): $310 Billion
- Ford (Automotives): $199 Billion
- Vanderbilt (Railroads): $185 Billion
- J.P. Morgan: $49 Billion

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Description

This quiz covers key concepts from the Sherman Antitrust Act, Social Darwinism, and the principles of laissez-faire business. Explore the differing perspectives on industrialists, their impact on competition, and the societal implications of unregulated business practices. Test your understanding of these pivotal topics in American economic history.