Monday, October 27, 2014

Corruption in the late 1800's

As we went over a section of reading from A People’s History of the United States, I thought that the amount of corruption that took place during this time was very interesting. I decided to look into it and found some more research about how the corruption of the US government in the 1870s and 1880s began.
After the Civil War, new technology and industrialization led to a massive growth of business. Companies had an easy time growing, however the government struggled to find a way to deal with it. The government did not have the leadership or business experience to control the rising businesses. Although it soon became apparent that the government would need to step in, they really did not have any idea where to start. This led to the government deciding to have a “hands-off” policy, which basically means they decided to do nothing. The government's “leave-to-do” policy ended up giving way to much power to businesses, leading to corruption. Without government regulations, powerful business men were able to do things like sit on the board of several companies at a time, which gained them a significant amount of power. People also felt free to bribe whoever they wanted and scandals like the Credit Mobilier Scandal were created. With an absent of government regulation in businesses, companies had very little preventing them from doing whatever they wanted.

2 comments:

  1. Thanks for the summary of today's class, Kimberley! I find it fascinating that the legacy of these men who dominated post-Civil War America can still be seen today--JP Morgan Bank, Carnegie Hall, Vanderbilt University, Stanford University, etc. But I'm also shocked that such rampant corruption happened in America, the land of liberty and opportunity. America is so often held up as a model of democracy and freedom that I sometimes forget it has its own share of dark periods as well. But I understand now why this part of history is often referred to as the "Gilded Age"--because "gilded" refers to (and almost mocks) the extreme wealth of a few select individuals during that time.

    As an interesting reference, we are currently readingThe Great Gatsby in AP Language. One of the main characters, Jay Gatsby, is an extremely wealthy businessman who built his fortune through the illegal practice of selling alcohol (also known as bootlegging) during Prohibition. Gatsby reminds me of men like Andrew Carnegie and JD Rockefeller because they fit the "rags-to-riches" story--they all came from humble beginnings to become successful, self-made businessmen.

    Also, here is an interesting link about the "men who built America":

    http://www.history.com/news/history-lists/5-things-you-may-not-know-about-the-men-who-built-america

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  2. Although you could say that rampant corruption during the late 1800s was detrimental to the US economy, it could also be interpreted as a stepping stone to our modern day judicial and legislative systems-primarily concerning industry and banking. From a historical standpoint (Russia, France), the lifespan of a country always includes many significant problems (corruption, power abuse). It's perfectly natural that the US underwent this turbulent period because it subsequently led to reforms such as the Sherman Antitrust Act.
    Interestingly enough, the late 1800s in the United State could be related to the modern day economic situation in China. Both circumstances had high corruption and poor government accountability. These factors, then and now, contribute to the foundation of a solid government, although they may not seem so at first.

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