U.S. Economic Normality 1865-1900
2. The Economics 3. Presidential Politics 4. Supreme CourtReturn to U.S. Economic Cycle History Updated 3/21/19 Please link to, textbook/supplement and
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U.S. Economic Normality 1865-1900 2. The Economics 3. Presidential Politics 4. Supreme CourtReturn to U.S. Economic Cycle History Updated 3/21/19 Please link to, textbook/supplement and |
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Civil War Ends, Northeast Takes Control, The Gilded Age is Built on the Backs of the Poor, Especially Women, Immigrants, and Blacks. The civil War was followed by massive industrialization centered on rail roads, canals and steamships. Massive wealth was created. Farm mechanism lowered the cost of food and this coupled with science made for a somewhat more prosperous middle class. Immigrant and farmers suffered. |
The panic of 1893 also severely deposed the economy.
Bankers would solve a banking panic problem. Tariffs a major source of federal
revenue were lowered but a small income tax on the very wealthy was declared
unconstitutional. |
The Politics Attempted to protect blacks and Indians failed, modernizing the civil service began as did civil service protection from the Jacksonian Era spoil system. Difficult economic times reslted in restricting Chinese immigration. Think 21st Century Mexican Immigration issues. The contested 1886 election saw the electoral college making Republican Hayes the winner. Payment was the end of Reconstruction with the withdrawal of Southern federal troops. Think 2000 election of Republican Bush #Two. Ignoring the senatorial courtesy executive appointments increased presidential power and the assassination of President McKinley ignited the Progressive Era |
Supreme Court 1) Federal Government Sovereignty Over Sates Governments begins when 1896 Plessy v. Ferguson legalized many state public facilities segregation laws using the "separate but equal" doctrine.
2) Protection Individual Rights From 3) Supreme Court as "Supreme Constitutional Authority" North and South needed political economy adjustments.
4) Protecting Business begins when
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2.
The Economics Prelude: The Civil War was followed by massive industrialization centered on rail roads, canals and steamships. Massive wealth was created. Farm mechanism lowered the cost of food and this coupled with science made for a somewhat more prosperous middle class., Many children, Indians, immigrants and women suffered.
The
Great Chicago Fire
of 1871 was a poor start and the
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Great Depression is #1
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Unemployment Exceeded 14%.
Lasted |
Greenback
Civil War paper currency speculation The panic that followed was caused by a low money supply caused by the Coinage Act of 1873 which lowered the money supply. . Workers blamed cheap foreign labor. It was called the Long Depression until |
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he 1930's when the Great Depression caused more hardship. It would not be the last time immigrants would be blamed for low worker wages. Think Trump's Wall..
The resulting stagflation – the combination of high unemployment and high
inflation caused a 1879
return of the United States to the
gold standard. See
Specie
Payment Resumption Act. |
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Panic
of 1893-94 is Ranked #2 |
Unemployment over 10% for 60 months |
Prelude: The 1886 Haymarket Riot began labor's fight for a larger share of company revenue. It continued with the 1892 Homestead Steel Strike in western Pennsylvania which turned into a ferocious day-long battle between Pinkerton men and townspeople. Finally came the 1894 Pullman Strike spread across the nation. Labor peace would rule until 1919 Red Scare. RR speculation led to the Reading Railroad failure and withdrawal of European investment led to a stock/banking collapse. 2) Repeal the Sherman Silver Purchase Act ended easy money. 3) Bank runs followed as foreign investors wanted species. Reluctantly J.P. Morgan bailed out the gold standard with $60,000,000.Think the Federal Reserve would become the Lender of Last Resort. |
The 1894 Wilson–Gorman Tariff lowered tariffs slightly & created a 2% income tax on high incomes, those over $4,000 ($88,100 in 2010 dollars) income. It would affect the top 1/10th of one percent. The 1895 Supreme Court. declared it unconstitutional. Think Trump did the opposite and lowered everyone's taxes. Political instability resulted which created the Populist Movement highlighted by its Free Silver "cross of gold" platform. See Gold, Deflation and The Panic of 1893
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3. Government Involvement
The
Pendleton Civil Service Reform Act of 1883 added merit to
the government hiring process. |
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4 . Supreme Court Power Grab BeginsSubjective Court Affects States and Business
1) Sovereignty of Federal Government Over Sates Governments
2) Protection Individual Rights From Arbitrary Governmental Actions 3) Supreme Court as "Supreme Constitutional Authority" 4) Protecting Business 1877 Munn v. Illinois 1877 upheld the power of government to regulate private industries.1895 Pollock v. Farmer's unapportioned income taxes on interest, dividends and rents as direct taxes, were unconstitutional 1895 U.S. v. E.C. Knight, the "Sugar Trust Case," limited government's control of monopolies.
Some Just Took Power Congressional Power Grab |