ID: Laissez-Faire Government in the Gilded Age
When: 1870s-1900s (roughly, with significant shifts in policy occurring later)
Who:
- Business Leaders: Industrialists like Andrew Carnegie, John D. Rockefeller, J.P. Morgan, etc., who benefited from minimal government regulation.
- Politicians: Many politicians, particularly at the federal level, adopted a largely hands-off approach to the economy.
- Workers: Workers often suffered under the conditions enabled by laissez-faire policies, leading to labor movements and unrest.
What:
A dominant economic and political philosophy during the Gilded Age characterized by minimal government intervention in the economy. This included limited regulation of businesses, minimal social safety nets, and a belief in the “invisible hand” of the free market. This led to the rapid growth of industry but also significant social and economic inequality.
Impact: Why Significant?:
- Unfettered Industrial Growth: Laissez-faire policies allowed for rapid industrial expansion and the creation of massive fortunes, but also resulted in monopolies, trusts, and economic instability.
- Social Inequality: The concentration of wealth in the hands of a few led to vast disparities between the rich and the poor, fueling social unrest and the rise of labor movements.
- Rise of Big Business: The lack of regulation allowed companies to grow unchecked, leading to the dominance of powerful monopolies and trusts that controlled vast sectors of the economy.
- Limited Worker Protections: Workers faced dangerous working conditions, low wages, and long hours with little to no government protection. This contributed to strikes, riots and the rise of labor unions.
- Corruption: The lack of oversight and regulation created opportunities for corruption and bribery in both business and government.
- Shifting Attitudes: Growing public awareness of the negative consequences of laissez-faire eventually led to calls for greater government regulation and reform, culminating in the Progressive Era. Examples include the Interstate Commerce Commission (1887) and the Sherman Antitrust Act (1890), which represent early attempts to curb laissez-faire excesses, though their immediate impact was limited.