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

Controversies Over Government Role During the Gilded Age

Introduction to the Gilded Age

• The video introduces Unit 6 of the AP U.S. History curriculum, focusing on government controversies during the Gilded Age.

• It highlights the significant changes in industry, production, demographics, and class structure that characterized this period.

Historical Context of Government Intervention

• The debate over government intervention dates back to America's founding, notably between Hamilton and Jefferson regarding the National Bank.

• Previous discussions included Henry Clay’s American System and whether government should fund infrastructure improvements like roads and canals.

Laissez-Faire Economics

• The dominant economic ideology was laissez-faire economics, meaning "leave alone," advocating minimal government interference in business.

• Adam Smith's "The Wealth of Nations" (1776) argued for economies governed by supply and demand through individual self-interest leading to societal benefits.

Critique of Laissez-Faire Practices

• Despite promoting laissez-faire principles, industrialists created monopolistic conditions that stifled competition contrary to Smith's vision.

• During economic downturns like the Panic of 1893, President Grover Cleveland's administration largely refrained from intervening to help struggling Americans.

Limited Government Involvement

• Although there were instances where government involvement favored business interests (e.g., Interstate Commerce Commission), it was often underfunded and ineffective.

• Examples include support for overthrowing Hawaii’s monarchy for market expansion and establishing the Open Door Policy with China for equal trading rights.

Conclusion on Government Role