Controversies over the Role of Government

Daniel Miller
7 min read
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Study Guide Overview
This study guide covers the Gilded Age in AP US History, focusing on the government's role in the economy. Key topics include: laissez-faire and Social Darwinism, government subsidies and the Interstate Commerce Act, the rise of monopolies and the Sherman Antitrust Act, civil service reform, monetary policy debates (easy vs. hard money, gold vs. silver), and the impact of tariffs. It also includes practice questions covering these concepts.
AP US History: The Gilded Age - A Last-Minute Review ๐
Hey there, future AP historian! Feeling the pressure? Don't worry, we've got this. This guide is designed to be your go-to resource for the Gilded Age, hitting all the key points you need to ace that exam. Let's dive in!
1. The Gilded Age: An Overview
1.1. Continuities and Changes in Government Role
- Continuities:
- Promoting economic growth through infrastructure (like railroads) and territorial expansion.
- Protecting American industry with tariffs on imports.
- Regulating business (e.g., Sherman Antitrust Act).
- Changes:
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Limited role in addressing social issues like poverty and labor rights.
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Laissez-faire approach to the economy (hands-off).
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Shift in railroad policy from support to regulation (Interstate Commerce Act).
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The Gilded Age saw a tension between government promotion of economic growth and a desire for limited government intervention.
1.2. Context: Laissez-faire and Social Darwinism
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Laissez-faire: Minimal government intervention in the economy. The market should regulate itself.
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Social Darwinism: Competition is natural and beneficial, leading to the "survival of the fittest" in business.
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Many opposed government intervention, believing the economy would self-correct. ๐ก
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Government actions (land grants, tariffs, hard money) aimed to support business while maintaining a laissez-faire stance.
Remember the tension between laissez-faire ideology and government actions to support businesses. This is a common theme in exam questions.
2. Government Actions and Their Impacts
2.1. Federal Land Grants
- Government Subsidies: Land grants to railroad companies to promote growth and development.
- Positive: Increased land value, mail delivery, troop transport.
- Negative:
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Hasty, poor construction.
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Corruption (bribes, insider profits).
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Displacement of Native Americans and environmental damage.
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Don't forget the negative consequences of land grants: corruption, poor construction, and harm to Native Americans and the environment.
2.2. Interstate Commerce Act of 1887
- Background: States' attempts to regulate railroads failed (Wabash v. Illinois).
- Purpose: To regulate railroad rates and prevent discrimination.
- Key Provisions:
- Rates must be "reasonable and just."
- Established the Interstate Commerce Commission (ICC).
- Impact:
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Aimed to prevent discrimination against small shippers and farmers.
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ICC was initially weak; strengthened by later acts (like the Hepburn Act).
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The Interstate Commerce Act was the first attempt at federal regulation of business.
3. The Rise of Monopolies and the Antitrust Movement
3.1. Trusts and Public Concerns
- Trusts (Monopolies): Large companies with unchecked power.
- Public Fears: Threat to competition and economic opportunity.
- Opposition: Middle class and urban elites (old wealth) resented the new rich.
3.2. Sherman Antitrust Act of 1890
- Purpose: To break up monopolies and promote competition.
- Provisions: Prohibited contracts, combinations, or conspiracies in restraint of trade.
- Initial Weakness:
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United States v. E.C. Knight Co. (1895): Limited application to commerce, not manufacturing.
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Ineffective until later court cases (e.g., Standard Oil Co. v. US, 1911).
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Think "Sherman said NO to monopolies!" but remember it took time to be effective.
4. Civil Service and Monetary Policy
4.1. Civil Service Reform
- Pendleton Act of 1881: Established the Civil Service Commission.
- Purpose: Merit-based appointments for federal jobs.
- Impact: Reduced political patronage and increased government efficiency.
4.2. "Easy" Money vs. "Hard" Money
- "Easy" Money:
- Advocated by farmers and startup businesses.
- Increase money supply for lower interest rates and easier loan repayment.
- "Hard" Money:
- Advocated by bankers, creditors, and established businesses.
- Currency backed by gold to maintain value.
- The value of the dollar increased by nearly 300% between 1865 and 1895. * Panic of 1873: Blamed on the gold standard for restricting the money supply.
4.3. The Greenback Party
- Opposition: Against specie-based monetary system.
- Beliefs: Government control of the monetary system for more currency in circulation.
- Decline: Specie Resumption Act of 1875 and economic turmoil led to the party's demise.
4.4. Demands for Silver Money
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"Crime of 1873": Congress stopped coining silver.
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Demands: Unlimited coinage of silver from farmers, debtors, and miners.
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Bland-Allison Act of 1878: Limited coinage of silver ($2-4 million/month).
Monetary policy debates (easy vs. hard money, gold vs. silver) are crucial for understanding the Gilded Age.
5. Tariffs and Economic Tensions
5.1. The Tariff Issue
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Civil War Tariffs: Protective tariffs to fund the Union and protect US industry.
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Post-War Opposition:
- Southern and Northern Democrats opposed tariffs for raising consumer prices.
- Other countries raised tariffs, decreasing international sales for US products.
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Impact: Lower farm profits, economic tension between regions.
Tariffs were a major source of economic and political conflict during the Gilded Age.
Final Exam Focus ๐ฏ
- High-Priority Topics:
- Government's role in the economy (laissez-faire vs. intervention).
- Impact of industrialization and monopolies.
- Monetary policy debates (gold vs. silver).
- Key legislation (Interstate Commerce Act, Sherman Antitrust Act).
- Common Question Types:
- Multiple Choice: Focus on specific events, legislation, and economic concepts.
- Short Answer: Analyze the effects of government policies, economic trends, and social movements.
- Free Response: Compare and contrast different viewpoints, analyze long-term impacts.
- Last-Minute Tips:
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Time Management: Quickly identify the question's focus and plan your response.
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Common Pitfalls: Avoid vague generalizations, support claims with specific evidence.
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Strategies: Use the documents to your advantage, make connections between different topics.
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When tackling FRQs, remember to clearly state your thesis, use specific evidence, and analyze the significance of your points.
Practice Questions
Practice Question
Multiple Choice Questions
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Which of the following best describes the main goal of the Interstate Commerce Act of 1887? (A) To promote the growth of monopolies (B) To regulate railroad rates and prevent discrimination (C) To encourage the expansion of the money supply (D) To establish a national banking system
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The Sherman Antitrust Act of 1890 was primarily intended to: (A) Protect workers' rights and promote labor unions (B) Break up monopolies and promote competition (C) Regulate the banking industry (D) Promote the expansion of railroads
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The debate between "easy" money and "hard" money in the late 19th century primarily concerned: (A) The role of government in regulating business (B) The expansion of railroads and infrastructure (C) The appropriate monetary policy to support economic growth (D) The protection of American industries through tariffs
Short Answer Question
Explain ONE way in which government policies during the Gilded Age promoted economic growth and ONE way in which they hindered it. Provide specific examples to support your answer.
Free Response Question
Evaluate the extent to which the government's role in the economy changed during the Gilded Age (1870-1900).
- Thesis (1 point): A clear, historically defensible thesis that addresses the prompt.
- Evidence (2-3 points): Specific historical evidence that supports the thesis (e.g., land grants, Interstate Commerce Act, Sherman Antitrust Act, monetary policy debates).
- Analysis (2-3 points): Analysis of the evidence that explains how the government's role changed or stayed the same. Must go beyond mere description.
- Synthesis (1 point): Connects the Gilded Age to another period or theme in US history (e.g., Progressive Era, New Deal).
You've got this! Go ace that exam! ๐ช

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