economics in gilded age america

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  • economics in gilded age
    • economics are what help make US growing continental power in 19thC to major global in 20th
      • business men and industrial leaders = result of global power, accumulation in hands of very few men and extremely amount of wealth and power
        • small elites own big bussinesses
    • gov unwilling to intervene
    • new technology= expand, changes lives of american's
      • leaders amke money, advances in steel make manufacturing easier, refrigeration invention makes long distance traponsportatino of food possible, packaging of food new ways,
        • railroad= possible due to steel, Robber Barons who exploited though
          • connect west with east, US 3,000 miles wide
          • Jay Gould= buying run down railroad and making minor cosmetic imrpvoements adding more value and selling on at enourmous profit.
            • Cornelius Vanderbilt= monopoly of railroad in NY area, right place at time and bribery
          • credit mobilier scandal= company paid 94M for 44M work, tax payer money
    • standard oil
      • Rockefeller= sets up oil company and takes over competition, at time of need for oil and new technology
        • controls 95% of US oil production in 1889-90
        • everyone reliant on his copmany enabling him to set higher prices, creates vertical integration (makes everything self)
        • interest of oil grows, looks at ways to consolidate power... monopolies/restrictions so he creates trusts
          • trusts used to centralise control and get aorund legislation= manage property belongs to others
    • Carnegie- steel
      • slowly builds up monpoly on steel production
      • also argues (Gospel of Wealth) that big business is good for American interest as reflect social development rather than everyone be poor
        • still donated parts of his wealth to public spheres like schools and playgrounds
    • banking= J.P Morgan = trades shares and makes fortnues, acquires railroads, invets into steel
    • these trusts and monopolies transformed america into power house, but also kept prices high and prevented competition and set low wages

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