The “captains of industry” brought growth to the US economy. The immigrants allowed for these “captains of industry” to become powerful. The immigrants also led to urban boom. All in all the Gilded Age was not a perfect time period but the success of the age outweighed the failures of this time
First off, jobs are created because someone must make, transport, and distribute the alcohol. Also, due to the higher than normal sales taxes on alcohol, it had a great tax revenue for the federal government. It’s a win-win situation: the Feds get money, while the people have fun and get drunk out of their minds! Alcohol also positively affected the economy because it heavily depended on railroads, telegraphs, and mechanical refrigeration. (The Brewing Industry) Railroads are gaining profit because alcohol producing companies are paying them to distribute their product to stores.
New Consumer Lifestyle The rise of the economy America in the 1920s resulted to American Consumerism. This is because it was in era that a lot of discoveries are found and inventions are made which led to the thriving businesses in the United States (Business and Economy, 2012). This period is also known as the Roaring Twenties. Because of the many discoveries and inventions, there has been a massive use of automobiles, telephones, motion pictures and electricity which contributed to the increased demand of the consumer. This later on resulted to deliberate changes in lifestyle and culture in the U.S.
After the conclusion of WW1 the USA was in a war economy, and because of this industry boomed, causing a massive surplus of goods. This caused the prices of goods to go down, and with the creation of credit plans many families could afford extravagant luxuries, previously denied. This coupled with 18th amendment and prohibition, both of which backfired causing booze to be cheaper and easier to find thanks to moonshiners and speakeasies, made the decade wild overall. The average American could afford to party, and party they did. The rise in more risque dances, parties, and people (flappers) is what caused the US to over indulge, which directly lead to the great depression.
United States History and New York History: Post-Civil War to the Present says that tax cuts would "give the wealthy an incentive to invest... the economy created new, better paying jobs." This shows that the tax cuts for the wealthy class of America allowed them to invest into businesses. With all of the investments, companies would be able to expand and pay their workers more money. With more money, workers can buy good from other companies, thus creating a chain reaction that would benefit everyone, The wealthy can continue to invest and once they sell their stocks, they can turn a profit. The workers get paid more which means they can buy from other businesses.
The society was divided in 2 groups: old and new money. People had got rich quick and they were trying to show how rich they are every possible time. “As year followed year of prosperity, the new diffusion of wealth brought marked results… There was an epidemic of outlines of knowledge and books of etiquette for those who had got rich quick and wanted to get cultured quick and become socially at ease” (Frederick Lewis Allen, Only Yesterday, 1931). There was a leap from 75 to 283 in the number of Americans who paid taxes on incomes of more than a million dollars a year. Money got the same meaning as “culture”.
The leading excitement in the economy was purchasing an automobile; furthermore, all classes of society could afford purchasing an automobile. Socially speaking, America had additional leisure time activities through the continued development of electronics. The majority of Americans had televisions in the homes. (Shultz, 2014). As exciting as this was for families, this leisure time activity had a negative impact on socializing with others.
In the book “The Gilded Age and Progressive Era” William explained that the introduction of railroads brought about the expansion of the United States. The engine of the new industrialized economy, eased the fast transportation of raw materials and finished goods from one part of the country to the other. As the railroads grew in power, it increased the economy of the country. He further explained that the problem the economy was facing is that workers were maltreated. They were forced to work in bad weather conditions and were paid very
In a time after the civil war, America improved their financing by switching to the gold standard, improved communication by boosting the telegraph, improved transportation by building railroads, and improved wealth by giving contracts for clothes to multiple companies. The economy was also improving massively also due to natural resources, demography, and law. Railroads allowed people as well as supplies to be transported quicker, safer, and cheaper. Companies bought each other out and formed monopolies which made the price go up and the owners very wealthy. Aside from all of these positives, there are also various problems that took place during the Gilded Age (1865-1900).
The economical standpoint in The Great Gatsby and the way characters such as Gatsby and Tom spent their money reflect how rich economy was and how others living during the 1920s spent their money. During The Roaring Twenties, “many people had extra money to spend on things other than food, housing, and other basic needs” ('Roaring Twenties' a Time of Economic and Social Change). Just like in The Great Gatsby, people living during the 1920s saw that there was more money than usual, so this became something they desired. The economy in both The Great Gatsby and the 1920s in America expanded and therefore purchasing things other than the necessities was considered true success.
Americans were giddy and carefree after the war ended (Gitlin). Industries grew and more jobs were available. More families had a bigger income so they could afford things they couldn 't in the past. This newfound wealth among the U.S was a change for many people across the country. Research and time were put into finding new inventions and ways to make life better.
How did the booming economy of the 1920’s affect the standard of living of the laboring man and create a new consumer economy? While the Gilded Age proved to be a challenging time for the laboring man by requiring whole families including small children to work long hours for little pay, the 1920’s was a prosperous time for Americans. Not only did wages increase, but a booming economy meant innovation that led to more products being available for consumers. Now that workers were being treated as shoppers, they acquired a purchasing power that heightened the booming American economy. This new found consumerism was steadily increased by new and wide sweeping advertising and the mass distribution of goods through chain stores.
Greed could certainly account for this new technique utilized in the business world. They were certainly earning and spending more than ever before on the surface. Expenditures on non necessities such as on automobiles, watches, and fashion clothing increased exponentially during the decade. However, the increase in charitable givings of Americans saw a 58%, second to only to the amount increase in automobile expenditures. Charitable giving increased from seventy-seven billion to one hundred twenty billion in a mere nine years, after only increasing forty billion in twenty-five years.
If businesses are earning more, they will need to hire more employees to keep up with the increased sales from the minimum wage consumers who have increased the spending because they have higher earnings. This in turn causes businesses to sell more products. If a business has a jumpstart to more sales, they may discover that they need more employees, producing more job opportunities. Causing employers to recruit more employees to supply the demand of labor, which will be needed due to the increased sales. Currently, the Government provides millions of house with some type of assistance.
“When the Civil War came, the demands for his goods increased dramatically, and Rockefeller found himself amassing a small fortune.” (Source 1 “The New Tycoons- John D. Rockefeller”) Generally, when there are many consumers buying from one company, then that establishment has had people within it using wise business tactics. For the Standard Oil Company, that person was John D. Rockefeller. “He shipped so many goods that railroad companies drooled over the prospect of getting his business.” (Source 1 “The New Tycoons- John D. Rockefeller) The want for Rockefeller’s products was only increased by the growth of the good’s shipping rates. Of course, Rockefeller was conscious of this and found a way to use this edge to its full potential. Only an intellectual being would be able to have as large of a command for their products as Rockefeller.