Gilded Age and Industrial America Study Notes

Introduction

  • The speaker recorded the lecture instead of presenting it live due to a holiday.

Overview of the Gilded Age and Economic Transformation

  • Focus on the Gilded Age: transformation of the economy post-Civil War and the overlapping Reconstruction period.

  • The U.S. underwent one of its most rapid economic revolutions (1850s to early 1900s).

  • Key elements driving economic change:

    • Abundant natural resources.

    • Increasing labor supply.

    • Expanding markets for manufactured goods.

    • Availability of capital for investment.

    • Federal government support through high tariffs, land grants to railroads, and military action to remove Native Americans from desirable lands.

Key Terms for Midterm Exam

  • Stress on importance of understanding key terms related to the Gilded Age and economic developments.

Economic Changes in Industrial America

  • The transition from small farms and artisan workshops to an industrial society post-Civil War.

  • By 1880, a U.S. census showed a majority of workers in non-farming jobs:

    • Reports detail that two-thirds of Americans were wage workers by 1890.

  • Migration impacts:

    • 11 million Americans moved from rural to urban areas between 1870 and 1920.

    • 25 million immigrants arrived in the U.S. during this time.

  • Key industrial cities:

    • Industrial cities in the North and Midwest became centers of manufacturing.

    • Great Lakes region became the heartland of the Second Industrial Revolution:

    • Steel, iron, machinery production.

    • Pittsburgh became known as the steel capital.

    • Chicago emerged as the second-largest city, thriving on meatpacking and heavy industry.

The Role of Railroads in Economic Growth

  • Railroads facilitated the Second Industrial Revolution:

    • Investment and land grants fueled railroad expansion.

    • Rail mileage tripled between 1860-1880, and again by 1920.

    • Created vast markets for agricultural and manufactured goods.

    • Introduced standard time zones in 1883, restructuring how society viewed time.

Technological Innovations

  • Innovations played a significant role in economic expansion:

    • 1866: Completion of the Atlantic cable improved transcontinental communication.

    • Inventions of the 1870s and 1880s:

    • Telephone, typewriter, handheld cameras.

  • Thomas Edison as prominent inventor:

    • Innovations included the light bulb and electric power generation, essential for industrial growth.

    • Electricity provided a more reliable power source than previous methods.

Corporate Competition and Monopolies

  • Economic growth led to intense market competition:

    • A market saturation caused price declines.

    • Efforts to stabilize chaotic marketplaces led to the formation of trusts (management by a single director).

  • Massive corporate consolidation took place:

    • Between 1897 and 1904, 4,000 firms merged or were acquired, leading to the dominance of corporations like U.S. Steel and Standard Oil.

  • Wealth concentration without taxation fed the fortunes of business leaders like Andrew Carnegie and John D. Rockefeller:

    • Carnegie established a vertically integrated steel company controlling every aspect from raw materials to distribution.

    • Rockefeller's Standard Oil controlled 90% of the oil industry.

Gilded Age Perception and Corruption

  • The term Gilded Age indicates a superficially attractive period hiding deep social issues:

    • The term derives from a novel by Mark Twain and Charles Dudley Warner.

  • Political corruption was rampant across levels of government:

    • Influence of railroad lobbyists in Pennsylvania and conflicts of interest among lawmakers.

    • Political machines, like Tweed's ring, manipulated urban politics while providing welfare to the poor.

  • National elections reflected intense party loyalty and high voter turnout despite corruption.

Labor Movements and Social Struggles

  • The labor movement sought reforms, including the eight-hour workday, but lacked enforcement.

  • Labor statistics illustrated harsh living and working conditions:

    • Strikes became more common as workers faced poor conditions and low wages.

  • The ideology of Social Darwinism justified the economic divide, blaming individuals for their social conditions:

    • Influential figures like William Graham Sumner argued against government intervention to help the poor.

Industrialization's Impact on Labor

  • The descaling of labor defined the industrial workforce:

    • Increased automation reduced the need for skilled labor and led to the rise of women and children in factories.

  • Over 20,000 strikes and labor disputes occurred in the late 19th century.

  • Significant events included the Great Railroad Strike of 1877, showcasing worker solidarity and government repression.

Labor Organizations of the Era

  • The Knights of Labor focused on inclusive organizing, despite excluding Asian workers.

  • Labor reform movements called for a range of reforms, from public employment to socialist ideas.

The Haymarket Affair

  • A pivotal event demonstrating labor tensions:

    • The Haymarket Square rally in 1886 after police killed strikers.

    • The subsequent bomb incident led to the arrest and sentencing of several labor leaders, many of whom were foreign-born immigrants, highlighting xenophobic sentiments against labor movements.

Conclusion and Reflection

  • Students should consider how industrialization transformed the American economy and the responses of workers to improve their conditions.

  • Reflect on the political landscape characterized by intense corruption and evolving social dynamics.

  • Reminder to review debrief questions for exam preparation, including thoughts on the economic structure and the future of labor activism.