Laissez-Faire Economics and Labor Strikes

The video covers Topic 6.12 of the APUSH curriculum, focusing on controversies over the role of government during the Gilded Age. It explains laissez-faire economics, highlighting the limited government intervention in the economy. The video discusses major strikes like the Great Railroad Strike, Homestead Strike, and Pullman Strike, and the government's response to these labor movements. It also examines the Panic of 1893, its causes, and its impact on the economy, including the depletion of gold reserves and the involvement of JP Morgan.

What is the main idea behind laissez-faire economics?

• Government should set fixed prices for goods.

• Government should heavily regulate businesses.

• Government should stay out of the economy as much as possible.

• Government should control supply and demand.

Which of the following best describes the contradiction in laissez-faire policies during the Gilded Age?

• Businessmen wanted the government to regulate labor unions.

• Businessmen wanted high taxes on their income.

• Businessmen supported government subsidies while advocating for minimal regulation.

• Businessmen opposed all forms of government intervention.

What was the main cause of the Great Railroad Strike of 1877?

• Increase in working hours.

• 10% wage cut by major railroads.

• Introduction of new machinery.

• Demand for better working conditions.

Who were the Pinkertons in the context of the Homestead Strike?

• Local police officers supporting the workers.

• A private detective agency hired to protect the steel mill.

• A group of striking workers.

• Federal troops sent to suppress the strike.

What was a significant outcome of the Pullman Strike of 1894?

• The strike led to higher wages for workers.

• The federal government sided with the workers.

• The strike disrupted rail traffic nationwide.

• The Pullman Company was nationalized.

Who led the Pullman Strike and later became a prominent socialist?

• Andrew Carnegie

• Eugene V. Debs

• J.P. Morgan

• John D. Rockefeller

What was the Panic of 1893 primarily caused by?

• A rise in agricultural prices.

• A decrease in government spending.

• A sudden increase in gold reserves.

• Overproduction and over-speculation.

How did the government respond to the Panic of 1893?

• By increasing taxes on businesses.

• By providing direct financial aid to citizens.

• By implementing a new gold standard.

• By borrowing gold from J.P. Morgan and other bankers.

What was Grover Cleveland's stance on government support during the Panic of 1893?

• He believed the government should provide financial support to the people.

• He supported the creation of new welfare programs.

• He advocated for increased government spending.

• He believed the government should not financially support the people.

What was a major concern about the gold standard during the Panic of 1893?

• The gold reserves were depleting, risking the currency's backing.

• The gold standard was causing inflation.

• There was too much gold in circulation.

• The gold standard was leading to increased government debt.