In the Gilded Age, big businesses were getting larger and laborers were working in poor conditions with long hours and low wages. Laborers did not approve of low wages, especially when the low wages were going to become lower. Eugene Debs supported higher wages for the laborers and the Pullman strike of 1894. The strike was made because the Pullman Palace Car Company cut wages, and the laborers wanted high wages since their wages were now 33% of their original wage. The impact of big businesses was detrimental economically and politically; Americans responded to the actions of the monopolists by making labor unions and a political party, which influenced the economy greatly.
The impact of big businesses was detrimental economically due to low wages/long hours, and the big businesses caused the smaller businesses to go out of businesses. The monopolists could withhold the laborers’ lawful wages and fire them without cause (B). The reason big businesses were appalling is because monopolists were able to give little money to the laborers, and inflate the prices so that they get the maximum amount of money out of the consumers. Thus, the laborers would be poor and they could do nothing about it.
The people in a manufacturing system ended up working in an institution like a military organization because they had no say in their workplace and they obeyed orders (C). They were forced to take the lower wages and long hours with minimal breaks. Also, big businesses were forcing smaller businesses out of business. The Ohio Oil Works was taken out of business because the Standard Oil Company made lower prices (one to three cents a gallon less), and the railroads would give the Ohio Oil Works high rates (H). The big businesses and monopolists teamed up with each other to take out the smaller ones.
This action was detrimental economically because the workers and owners of the smaller business made zero money once they went out of business. They lost their job and were most likely forced to work as a laborer for less money. In conclusion, big businesses were detrimental economically because they made sure that other workers would make less money than their own workers and that the laborers made just enough money to survive.
The impact of big businesses negatively affected politics because monopolists would use money from their big business to pay off officials/judges for their benefit. Monopolists could delay trials, postpone judgment indefinitely, control legislative bodies, and dictate legislation (B). While the monopolists controlled the judicial system, the legislators did nothing about it since they were given money (D). Big businesses caused the judicial system to not improve and become corrupted by paying off judges. Also, the officials and legislators did not improve the government because of the monopolists paying off them to not change the judicial system.
In addition, big businesses used the judicial system to postpone cases indefinitely that would hurt the businesses. For example, if a worker was hurt because the company was at fault due to dangerous equipment, the worker suing the business would not have a decision made for the case. Therefore, big businesses harmfully affected politics because the government as a whole did not improve and became corrupt due to the monopolists paying off the judges, legislators, and officials.
Americans responded to the big businesses by making labor unions and a political party, which positively affected the economy. Samuel Gompers made a statement explaining how laborers demand less hours and adequate wages while being treated like human beings (G). Gompers was leader of the American Federation of Labor and a supporter of many unions like the American Railway Union. Gompers would have also supported the People’s Party that emerged to fight against the big businesses.
The People’s Party wanted to restore the government and end the oppression, injustice, and poverty in the United States (F). Unions and the People’s Party positively affected the economy because they were able to cause the government to pass the Gold Standard Act of 1900. Even though the People’s Party wanted free and unlimited silver, they caused the government leaders to choose between silver and gold. McKinley wanted gold and won the election. The Gold Standard Act of 1900 gave the economy stability and calmness. Since there was a gold rush in Alaska, the laborers became happy because inflation occurred with gold. Therefore, the Americans’ making of the People’s Party and labor unions caused the government to choose a gold or silver standard, which ultimately improved the economy through inflation.
The big businesses negatively affected the economy and politics of the United States, and Americans responded positively by making labor unions and a political party that improved the economy. Big businesses were detrimental to the economy because they caused small businesses to go out of business. They also caused laborers to barely make enough money to live due to low wages. Big businesses were detrimental to politics as well because the monopolists paid off judges and officials.
Thus, the legislative and judicial branch did not improve and became corrupt. Americans responded positively to these issues by making labor unions and a political party. Even though they did not get all the demands they wanted, they were able to cause the Gold Standard Act of 1900. The act eventually led to inflation due to a gold rush in Alaska. Therefore, the Americans response was positive because it caused inflation to improve the economy. The Americans were able to respond positively despite the big businesses and monopolists corrupting the government and taking over the economy.
