The Gilded Age 1877-1900 “All that glitters is not gold”

Analyzing the Term “Gilded Age” “Gilded” objects have a paper-thin layer of gold-leaf over wood, plaster or metal. Today objects are often painted gold to appear “gilded.” Of course, the objects are not really made of solid gold, they only look that way. In the same manner, the “Gilded Age” was not really the golden age that it might appear to have been on the surface. It was a time in which people faced many economic and social problems. So, the expression, Gilded Age, has a double meaning.

Industrialization and the Rise of Big Business While the early Industrial Revolution occurred in Europe and America between 1750 and 1850, a second phase of the Industrial Revolution took place in the late 1800s. During this time period, huge corporations were formed that employed thousands and produced enormous amounts of goods. The founders of these companies amassed great wealth while their workers were poorly paid.

Captains of Industry Andrew Carnegie was one of the most famous self-made men of this period. He bought out his suppliers and his competitors until he controlled the steel industry. Carnegie Steel produced most of the nation’s steel in the latter half of the 19th century. Carnegie is also known for his generous charitable donations.

Railroads became one of the most powerful and profitable industries in the late 1800s, since almost all other industries depended upon them for transportation. The first transcontinental railroad was completed in 1869. One man who made his fortune in the railroad industry was Cornelius Vanderbilt.

The Vanderbilt’s “Marble House” Estate in Newport, Rhode Island

John D. Rockefeller Sr. and Jr. John D. Rockefeller-turned his Standard Oil Company into a “trust” by buying stock in his competitors companies until he controlled them. The Sherman Anti-Trust Act was passed in 1890 to make trusts illegal. Companies found many ways to get around this law. In 1906, the government brought suit against Standard Oil and in 1911 the trust was finally ordered to dissolve.

The Problems of Industrial Workers There was almost no government regulation of businesses at this time, therefore there was 1) no minimum wage, 2) no maximum number of hours per week, 3) no higher pay for overtime, 4) no regulation of unhealthy or unsafe working conditions, and 5) no health insurance or other employee benefits. Industrialization created low-wage, low-skilled jobs that made employees easy to replace. This led to the growth of labor unions.

The Early Labor Union Movement The first labor unions were formed within certain trades or industries. They tried to improve wages and working conditions by collective bargaining and threatening strikes. Between 1877 and 1893 there were several huge strikes, like the Pullman railroad strike in Chicago. These strikes often turned violent when police, company guards or federal troops were ordered to end them. Union popularity declined because the public associated labor unions with violence.

Radical Unionism Develops Eugene V. Debs, who was imprisoned during the Pullman Strike, grew to be completely disillusioned with capitalism. He became a spokesman for the Socialist Party of America, running for US president 5 times. The Industrial Workers of the World advocated government control of all businesses. Most unions were not as radical.

The Problems of Farmers Because of the expansion of farming as settlers moved westward, there was an overproduction of crops which led to a drop in farm prices. At the same time, railroad rates were rising. Farmers living in remote areas were very dependent on the railroads to transport crops. Farmers became deeply in debt. Farmers began the Populist Movement asking for railroad regulation and monetary reform to relieve their indebtedness.

The Problems of Immigrants The thousands of immigrants that came from Southern and Eastern Europe from 1890-1915 were often poor and illiterate. They accepted unskilled jobs in industry and had to move into the overly crowded cities. There they faced a triple hardship: low wages, desperately poor housing conditions and nativism (prejudice against immigrants). Nativists encouraged the government to pass immigration restriction laws.

The Problems of Minorities Discrimination against African-Americans was legalized by the passage of Jim Crow laws allowing segregation. The constitutionality of these laws was upheld by the Supreme Court decision in Plessy v. Ferguson. The right to vote promised by the Fifteenth Amendment was undermined by the use of poll taxes, literacy tests, and grandfather clauses. Asians also faced discrimination. The Chinese Exclusion Act banned further immigration from China.

Urban Problems The industrial cities of the 1800s grew rapidly and poor workers lived in slums. Police and fire departments were understaffed. There was not enough clean water and sewer systems were inadequate. Tenement houses were crowded and unsafe. City governments were often corrupt. These “political machines” won the votes of the immigrants, but often abused their power. Graft is when a public official uses his office to make himself rich, through bribery or stealing public funds.

Early Reformers There were no welfare programs during this time. The government did not help the poor. Using private donations and her own funds, Jane Addams established the first “settlement house” in Chicago to provide services to the residents of the slums. Harvard educated W.E.B. DuBois helped found the N.A.A.C.P to help his fellow African-Americans achieve fairer treatment.