Gilded Age Industrialists, Labor Movements, and Economic Theories

Adam Smith

Scottish economist, author of Wealth of Nations (1776). Advocated laissez-faire capitalism, competition, and the 'invisible hand.' His ideas justified Gilded Age capitalism and minimal government regulation.

American Federation of Labor (AFL)

Led by Samuel Gompers. A national labor union focused on skilled workers, collective bargaining, and higher wages. More conservative than Knights of Labor; became the most powerful labor union in the early 1900s.

Andrew Carnegie

Steel magnate; used vertical integration. Beliefs: Gospel of Wealth — rich have a duty to use wealth to help society. Symbol of industrial capitalism; philanthropist.

Edward Bellamy

Author of Looking Backward (1888). Imagined a future socialist utopia. Critiqued capitalism and inspired reform movements.

Eugene V. Debs

Labor leader; socialist. Led Pullman Strike; founded American Railway Union. Symbol of radical labor activism; later ran for president as a Socialist.

Frederick Winslow Taylor

Created scientific management / Taylorism — efficiency, time-motion studies. Increased productivity but deskilled workers, contributing to labor unrest.

Gospel of Wealth

Idea from Carnegie: Wealthy must uplift society through philanthropy. Justified inequality but promoted charity (libraries, universities).

Grotesque Luxury / Conspicuous Consumption

Showing off wealth (mansions, parties). Critique of the Gilded Age → symbol of class inequality.

Haymarket Bombing

1886 protest in Chicago where a bomb killed police. Labor unions (especially Knights of Labor) were unfairly blamed. Major setback for labor movement; rise in fear of radicals.

Henry Clay Frick

Carnegie's manager. Caused the Homestead Strike by cutting wages and using Pinkertons. Showed violent conflict between labor and big business.

Henry Ford

Automobile manufacturer. Used assembly line; mass production lowered car prices. Transformed consumer culture and modern industrial labor.

Henry George

Author of Progress and Poverty (1879). Idea: 'Single tax' to solve inequality. Popular critic of industrial capitalism.

Holding Companies

Companies that own other companies' stock. Allowed monopolies without technically merging businesses.

Homestead Strike

Where: Carnegie Steel (PA, 1892). Violent strike crushed by Pinkertons. Big business wins again; unions weaken.

Horatio Alger

Author of 'rags-to-riches' stories. Belief: Hard work = success. Justified Gilded Age capitalism; ignored structural inequality.

Horizontal Integration

Buying out competitors in the same industry (monopoly). Example: Rockefeller → Standard Oil. Limited competition → huge corporate power.

John D. Rockefeller

Oil magnate; used horizontal integration. Symbol of monopoly power.

John Peter Altgeld

Illinois governor sympathetic to workers. Pardoned men convicted after Haymarket. Reform-minded; hated by business interests.

J.P. Morgan

Banker; financier. Stabilized markets; bought Carnegie Steel → U.S. Steel; symbol of finance capitalism.

Knights of Labor

Led by Terence Powderly. Inclusive union (skilled + unskilled). Goal: End child labor, improve wages, worker cooperatives. Collapsed after Haymarket bombing.

Limited Liability

Investors risk only what they invested. Encouraged mass investment → rise of corporations.

Molly Maguires

Irish coal miners in PA. Accused of: Violent resistance to mine owners. Used by companies to justify anti-union tactics.

National Labor Union

First major national labor organization (1860s). Pushed for 8-hour day; collapsed during Panic of 1873.

Pullman Strike

1894 railroad strike after wage cuts. Federal government intervened → sent troops. Government sides with big business.

Samuel Gompers

Founder of AFL. Beliefs: 'Bread-and-butter' unionism → wages, hours, working conditions. Made unions more respectable.

Scientific Management

Created by Frederick Winslow Taylor; focuses on efficiency and time-motion studies.

Social Darwinism

'Survival of the fittest' applied to society. Used by wealthy industrialists. Justified inequality and anti-regulation policies.

Trusts

Group of companies managed by a board of trustees. Allowed monopolies to form legally.

Vertical Integration

Controlling every step of production (raw materials → distribution). Example: Carnegie Steel. Reduced costs; increased power.

Wilbur and Orville Wright

Invented first successful airplane (1903). Revolutionized transportation; symbol of American innovation.

Women's Trade Union League

Organization for women workers; focused on safety, wages. Important in Progressive labor reforms (e.g., Triangle Shirtwaist aftermath).