CONTROVERSIES Over the Role of GOVERNMENT in the Gilded Age [APUSH Review 6.12] Period 6: 1865-1898

Summary

In this video from Heimler's History, the focus is on the controversies surrounding the role of government during the Gilded Age in the United States. The debate over government intervention in the economy has historical roots, dating back to disagreements between Alexander Hamilton and Thomas Jefferson. The video discusses the laissez-faire economic ideology, which was dominant during this period and advocated for minimal government interference in the economy. Despite this ideology, industrialists and politicians often called for government action when it was beneficial for business expansion, such as in the cases of the Hawaiian monarchy's overthrow and the Open Door Policy with China. However, meaningful government regulation of business was largely absent, even in times of economic crisis, as illustrated by President Grover Cleveland's inaction during the Panic of 1893 and the limited power of the Interstate Commerce Commission. The video concludes by noting the selective nature of government involvement in business affairs during the Gilded Age.

Takeaways

• 🏭 The rise of industry in America during the Gilded Age significantly changed the production of goods, city demographics, and class structures.
• 🇺🇸 The debate over the role of government in the economy dates back to the founding of the United States, with early disagreements between figures like Alexander Hamilton and Thomas Jefferson.
• 💼 Laissez-faire economics, rooted in Adam Smith's 'The Wealth of Nations,' was the dominant ideology, advocating for minimal government intervention in the economy.
• 📉 Despite the ideology, Gilded Age industrialists and politicians often acted contrary to the principles of competition that Smith advocated for a healthy economy.
• 🔍 The government was largely hands-off during economic downturns, such as the Panic of 1893, with President Grover Cleveland taking a passive approach.
• 🛠️ The Interstate Commerce Commission (ICC) was established to regulate railroads, but it was underfunded and lacked real power to enforce regulations.
• 🌎 The government did intervene in business when it saw potential for economic gain, such as through overseas market expansion and diplomacy.
• 👑 Laissez-faire capitalists supported the overthrow of the Hawaiian monarchy, which later facilitated the U.S. annexation and opening of new markets.
• 🚪 The Open Door Policy with China in 1899-1900 was an example of the U.S. government promoting equal trading rights, countering European dominance in Chinese ports.
• ❌ The Gilded Age was characterized by minimal meaningful government involvement in regulating business practices.
• 📚 The video script is part of a series discussing Unit 6 of the AP U.S. History curriculum, focusing on the controversies over government's role during the Gilded Age.

Q & A

What was the main debate during the Gilded Age regarding the role of government?

The main debate during the Gilded Age was about the role government should take in relation to the changing realities of industrialization, such as the production of goods, city demographics, and class structures.

What is the historical context of the debate on the role of the federal government in the economy?

The debate on the role of the federal government in the economy dates back to the founding of the United States, with key figures like Alexander Hamilton and Thomas Jefferson disagreeing on issues such as the National Bank.

What economic ideology was dominant during the Gilded Age?

Laissez-faire economics was the dominant economic ideology during the Gilded Age, advocating for minimal government intervention in the economy.

Who is Adam Smith and what is his contribution to economic thought?

Adam Smith was an economist who published 'The Wealth of Nations' in 1776. He argued that economies are best governed by the laws of supply and demand and that the 'invisible hand' of the market would lead to the flourishing of society if left to operate freely.

How did the industrialists and politicians of the Gilded Age misinterpret Adam Smith's economic theories?

While advocating for laissez-faire economics, the industrialists and politicians of the Gilded Age consolidated power in their industries, reducing competition, which was an essential element of a healthy economy according to Smith's theories.

What was the stance of President Grover Cleveland during the Panic of 1893?

President Grover Cleveland largely did nothing to alleviate the economic disaster during the Panic of 1893, adhering to the laissez-faire approach of non-intervention by the government.

What was the Interstate Commerce Commission (ICC) and why was it created?

The Interstate Commerce Commission (ICC) was a federal agency created in response to a Supreme Court decision in 1886 that prevented states from regulating railroads. The ICC was intended to ensure compliance with this law, but it was underfunded and lacked real power.

When did the U.S. government get involved in business during the Gilded Age?

The U.S. government got involved in business during the Gilded Age when it saw potential for economic gains, such as through diplomacy to expand markets overseas, as seen with the overthrow of the Hawaiian monarchy and the Open Door Policy with China.

What was the Open Door Policy between China and the United States?

The Open Door Policy, established in 1899-1900, was an agreement that advocated for equal trading rights in all the ports in China, which were being dominated by European powers at the time.

Why did the government's involvement in business during the Gilded Age often lack meaningful regulation?

The government's involvement often lacked meaningful regulation because the dominant laissez-faire ideology favored minimal government intervention in the economy, except when it could lead to clear economic benefits.

What was the presenter's suggestion for students who want to excel in their AP U.S. History class?

The presenter suggested that students who want to excel might consider using his Ultimate Review Packet and encouraged them to subscribe for more content.