Gilded Age industrialization fueled the dependence of the railroad in the Progressive Era. Railroads, government, and the economy were not only interrelated, but they were also interdependent. The federal government and the railroad companies often worked together, with the government providing subsidies to the companies and discounted prices. Congress also provided free land and thousands of miles in subsidies to the companies. Furthermore, railroads directly impacted the country's economy, being a key factor in causing the Panic of 1873 and the Panic of 1893. Railroads, government, and the economy were interdependent through the reliance of railroad companies on the government, corruption between railroads and government officials, and the direct impact of railroads on the economy. Railroad companies were solely funded by taxpayers, so the companies had no reason to work efficiently or …show more content…
One example was the Credit Mobilier scandal where major stockholders of the Union Pacific Railroad formed the Credit Mobilier company and sold their shares to influential congressmen. These executives essentially hired themselves and stole taxpayer money, a very lucrative scandal. Scandals like the Credit Mobilier were widespread and executives from many other railroad companies often stole from their own companies. Many executives would manipulate the rail companies' stocks to profit greatly. Executives would often bribe influential politicians, and work together to profit themselves. Sometimes, government officials and railroad companies would not work together, but still use each other for success, even if it meant the failure for one party. For example, if a company failed, creditors could take everything from the owner. Congressmen were often found guilty of accepting bribes, but most accepted bribes nevertheless because the risk of getting caught was minimal while the profits were
A. How did Jay Cooke and the Northern Pacific Railroad contribute to the Panic of 1873? Jay Cooke financed the Northern Pacific Railroad. This Railroad incited most people because it seemed to have a promise of wealth, so a lot of investment came in. But, when Cooke went bankrupt, the Panic of 1873 began. Many people lost their jobs, and bread lines were seen everywhere.
In the era of 1837, was the starting point for the new establishment for banks all over the United State. In the beginning, banks were in the center of importing and exporting and funding paper bills (Foner 365). The banks funded businesses and other industry to trade, buy or sell opening the pathways to overseas. Thus, to a wider range of people who flavored western goods and in return helped western prospered. However, without a proper regulation and restriction of issuing out bills put a downfall in the economy, unbalance system that cause the Panic of 1837 (Foner 366).
1) The Panic of 1873 was caused due to inflation from the Civil War, over investing, government subsidies and property loss. Many companies produced too much product and then couldn’t sell them. In 1893, the priced of wheat rapidly declined and once again, there overproduction and Europe pulled out much of its investments. Also, many countries had started using the gold standard and the united states was split by the farmers supporting silver and wealthy supporting gold. Both panics showed the dangers of gaps between social classes.
Several industrialists had a major impact on the Gilded Age. These industrialists were Andrew Carnegie, John D. Rockefeller, Vanderbilt, Thomas Edison, and Alexander Gram Bell. Andrew Carnegie made steel from iron which helped to build railroads and buildings. He also developed a process that sped up the production of steel by 96 times. This process is known as the Bessemer Process.
The growth of government power commenced during the Gilded Age when farmers perceived problems formed the Populist Party that brought up the Omaha Platform, which demanded the government for certain policies. These demands in the Omaha Platform would later be answered by the government during the Progressive Era. After the Progressive Era, the Great Depression would occur forming the New Deal that could have some extension of progressive ideology and gave a massive increase of power to the government. Then Lyndon B. Johnson formed the Great Society that was like the New Deal on steroids hoping for prosperity for everyone. As you can see, from the Gilded Age, to the Progressive Era, to the New Deal, to the Great Society, and to the Great Recession,
Cornelius Vanderbilt saw the trouble coming. By 1873, the 79-year-old "Commodore," as he was called, was no stranger to risk: calculated bets with steamboat and railroad companies had made him by far the richest man in America. But he was wary of overexpansion by the railroads in the West, skeptical of economic weakness abroad and loose credit at home, and disdainful of the new "gang of stock speculators in Wall Street"—which included some of his own clan. When big banks began to fall on Sept. 18, 1873, he immediately understood what was wrong. "There are a great many worthless railroads started in this country without any means to carry them through," he told a reporter that evening.
One of the biggest scandals was the Teapot Dome Scandal, one of Presidents Harding's cabinet members sold U.S Navy oil reserves at Elk Hills, California, and Teapot Dome, Wyoming causing a strain in the country. Judges and Senators were friends with these mobsters, getting help by rigging elections. The Police Departments in Chicago and New York lacked the adequate training to stop any of the shady business. Bribing of police officers and agents into smuggling operations of alcohol became a big problem. The crime at the time was said to be, “the greatest crime record ever attained by a
The Gilded Age, the period of the history of the United States from the Reconstruction to the early 20th century, witnessed the development of industrialization, urbanization, the construction of great transcontinental railroads, innovations in science and technology, and the rise of big business. There were many capable leaders who were building a better future. Vanderbilt stopped at nothing to connect the nation via railroads. Rockefeller used his trademark ruthlessness to establish his oil empire. Cities were expending to the sky, this was built on the strength of Andrew Carnegie’s steel.
In a time after the Civil War, when a transcontinental railroad was created connecting the East and West, people began to move and settle across the country, creating new urban cities and manufacturing hubs. It was because of the railroad that the Second Industrial Revolution and the Gilded Age took place which rapidly increased the manufacturing of products through the new machines in factories and the spread of ideas by the telegraph and railroad. It was in this context that many farmers, as well, began to move West and experience a loss in the prices of their crops. It is also in this context that many workers were forced to work long, laborious hours with little pay. Farmers responded to industrialization in the Gilded Age by forming organizations such as the Granger movement and the Farmers Alliance as well as creating the Populist Party.
During the Gilded Age wealthy people lived by an unbendable social calendar. Most wealthy people spent their time going to fairs, circus, sporting events, etc. Many Women spent an enormous amount of time hosting parties. One host actually offered their guests a cigar wrapped in hundred-dollar bills. A fairly small percentage of wealthy people lived in luxury homes.
Industrialist had a huge impact on the gilded age. The gilded age was a rapid expansion of industrialism and a massive jump in the population of immigrants in america. The industrialist during the gilded age such as Andrew Carnegie, John D. Rockefeller, and Vanderbilt had a big impact because of their businesses. Vanderbilt was the first of the three to be a leader of industry. Vanderbilt made millions using the railroad system and built an empire with them.
With the advent of the railroad, many of these issues disappeared. Railroads had a major impact on advancing the American economy, transforming America into a modern society, and improving an antiquated transportation system. The building of railroads created rapid economic growth in America. Railroad companies employed more than one million workers to build and maintain railroads. At the same time, coal, timber, and steel industries employed thousands of workers to provide the supplies necessary to build railroads (Chapter 12 Industrialization).
In other words, Claudius deceived his family to protect his reputation and wealth, which is treason, the highest criminal offense in a territory. Another example of economic corruption relates to the subprime mortgage crisis. When the Securities and Exchange Commission’s net capital rule relaxed in enforcement, large investment banks expanded their issuance of mortgage-backed securities,
Consequently States outlawed further public subsidies to reign in their losses. The design and expansion of the trans-continental railroad required a massive infusion of wealth which was beyond the capabilities of all the financial resources of the time. Only the intervention of the Federal government could serve the long term financial interests of the railroads like the Union
For example, executives of companies like Sears don’t spend time in jail for robbing money from their poor clients. Big reputations give many people illicit opportunities to cheat others that results