The Growing Economic Crisis Of The Late Nineteenth Century
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Lesson 26
The Growing Economlc Crisis of the Late Nineteenth Century
Objective
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To understand progressive steps taken by big business to bring order and stability to chaotic businesses of the late nineteenth century
Notes
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Social Darwinism soon proved to be a philosophy for economic chaos. In the laissezfatre climate of the time. suppliers had to seek a monopoly to avoid being wrecked by competition. In their view, the government should protect individuals. businesses. and their property and promote the economic interests of business when they ask for help. particularly in raising tartffs. As large scale businesses evolvedin the post-Civil War years. various strategies were used to minimize ruinous competition. among them agreements. pools. interlocking directorates. and trusts. When agreements and pools did not work. interlocking directorates proved cumbersome, and legislation made trusts illegal.
J.P. Morgan introduced the holding company in an effort to stabilize whole industries.
In this lesson, students interpret a series of documents to learn how late nineteenthcentury businessmen tried to bring order and stability to the economy. Then. they write a thesis statement to suggest why the businessmen;s approach to organizing the economy has not been accepted in the twentieth century.
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t
159
Name,
Date
Advanced Placement U.S. History 1
Lesson 26
Handout 26 (page 1)
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The Growing Economic Crisis of the Late Nineteenth Century
At the beginning of the twentieth century. financier J.P. Morgan sought a way to bring order and stability to what he considered the chaotic condition of American business. He summarized three major problems of American businessmen: (1) business had to be saved from ruinous competition;
(2) the rise and fall of prices had to be minimized and the disastrous effects of the business cycle padded and (3) the rising power of labor had to be blocked at all costs. or capitalism would
Lesson 26
The Growing Economlc Crisis of the Late Nineteenth Century
Objective
•
To understand progressive steps taken by big business to bring order and stability to chaotic businesses of the late nineteenth century
Notes
~
~
~
•
•
•
~
•
~
•
•
•
•
•
Social Darwinism soon proved to be a philosophy for economic chaos. In the laissezfatre climate of the time. suppliers had to seek a monopoly to avoid being wrecked by competition. In their view, the government should protect individuals. businesses. and their property and promote the economic interests of business when they ask for help. particularly in raising tartffs. As large scale businesses evolvedin the post-Civil War years. various strategies were used to minimize ruinous competition. among them agreements. pools. interlocking directorates. and trusts. When agreements and pools did not work. interlocking directorates proved cumbersome, and legislation made trusts illegal.
J.P. Morgan introduced the holding company in an effort to stabilize whole industries.
In this lesson, students interpret a series of documents to learn how late nineteenthcentury businessmen tried to bring order and stability to the economy. Then. they write a thesis statement to suggest why the businessmen;s approach to organizing the economy has not been accepted in the twentieth century.
~
•
•
•
•
•
~
•
•
t
159
Name,
Date
Advanced Placement U.S. History 1
Lesson 26
Handout 26 (page 1)
_
_
The Growing Economic Crisis of the Late Nineteenth Century
At the beginning of the twentieth century. financier J.P. Morgan sought a way to bring order and stability to what he considered the chaotic condition of American business. He summarized three major problems of American businessmen: (1) business had to be saved from ruinous competition;
(2) the rise and fall of prices had to be minimized and the disastrous effects of the business cycle padded and (3) the rising power of labor had to be blocked at all costs. or capitalism would