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Chapter 16: America’s Gilded Age (1870-1890)
Focus Questions
What factors contributed to the U.S. becoming a mature industrial society after the Civil War?
How did economic development during the Gilded Age affect American freedom?
How did reformers address the problems of an industrial society?
How was the West economically and socially transformed during this period?
Was the political system of the Gilded Age effective in achieving its goals?
The Statue of Liberty
Immense crowd gathered in New York harbor on October 28, 1886, for the dedication of the Statue of Liberty.
Originated from Édouard de Laboulaye’s idea in 1865, symbolizing the historic friendship between France and the U.S. following Lincoln’s assassination.
Statue measures over 150 feet and was the tallest man-made structure in the Western Hemisphere.
The statue symbolizes freedom and has welcomed millions of immigrants, becoming an iconic fixture in American culture.
The Context of Social Division
The dedication occurred amidst violence from white supremacists, labor conflicts, and political assassinations.
The hopes for renewed devotion to America’s political and economic systems were contrasted with deep social divisions and fears about the future of freedom.
Questions arose about the social conditions needed for freedom and the government’s role in supporting citizens’ liberties.
Chronology of Key Events
1872: Crédit Mobilier scandal
1873: Publication of The Gilded Age by Mark Twain and Charles Dudley Warner
1876: Battle of the Little Bighorn
1886: Haymarket affair, Wabash v. Illinois, establishment of Standard national railroad gauge
1890: Sherman Antitrust Act, Massacre at Wounded Knee
The Second Industrial Revolution
Rapid economic growth from post-Civil War to early 20th century.
Factors for growth: natural resources, labor supply, market expansion, capital investment, government promotion.
Transition from agrarian to industrial society, with factory production, mining, and railroad construction surpassing previous models.
The U.S. produced one-third of the world’s industrial output by 1913.
Industrial Economy Growth
By 1880, first Census showed more workers in non-farming jobs than farming.
The emergence of a new working class due to urban migration and immigration (11 million Americans moved from farms, +25 million immigrants).
Urban Industrial Centers
Manufacturing shifted to industrial cities; New York’s population grew to 3.4 million by 1898.
Significant industrial activity centered around the Great Lakes, with cities like Pittsburgh (iron and steel) and Chicago (meat processing, steel).
Railroads and the National Market
The railroad network created a national market, sparking commercial farming and integrating various regional economies.
Railroads standardized gauges and reorganized time zones to streamline operations and increase efficiency.
Indicators of Economic Change (1870-1920)
Charts reveal changes in farming land, wheat production, industrial employment, and national productivity, showing stark changes in economic demographics.
The Spirit of Innovation
Technological advancements accelerated communication: telegraph, telephone, lighting, and electric power emerged.
Thomas A. Edison established new industries with inventions like the lightbulb and phonograph, fundamentally changing urban life and economy.
Competition and Consolidation
Economic volatility and unrestricted competition led to the formation of pools, trusts, and monopolies.
Corporations like U.S. Steel and Standard Oil emerged, with significant economic control and influence.
The Rise of Andrew Carnegie
Carnegie epitomized the American success story, starting from poverty and building a steel empire through vertical integration.
He became a philanthropist, advocating for the moral obligation of the wealthy to support social advancement, despite harsh labor practices.
The Triumph of John D. Rockefeller
Rockefeller’s Standard Oil dominated the industry, utilizing ruthless tactics to outcompete rivals and engaging in philanthropy.
Both Carnegie and Rockefeller were subjects of public admiration and criticism for their wealth and methods.
Workers’ Freedom in an Industrial Age
Economic growth created new forms of skill-related independence for some, but most workers faced economic insecurity, long hours, and unsafe conditions.
The working class experienced a widening gap between the rich and the poor as class divisions became pronounced.
Social Problem and Class Discussion
Economic disparities led to debates about the social structure; many viewed the emergence of a permanent factory population and growing millionaire class as threats to liberty and democracy.
Liberty of Contract
The concept of 'liberty of contract' justified unrestricted employer-employee agreements with significant legal backing against interventions in working conditions.
Courts frequently sided with business over labor, striking down regulations aimed at public welfare.
Labor Movement and Political Response
Labor struggles intensified, exemplified by events like the Great Railroad Strike of 1877 and the emergence of Knights of Labor.
Workers sought social reforms, battling issues like wage cuts and unsafe conditions with varied levels of success amidst political corruption.
The Transformation of the West
Expansion into the West transformed the social and economic landscape, characterized by the displacement of Native Americans and the establishment of new agricultural and economic structures.
Diverse communities developed, but the myth of the independent farmer largely obscured the struggles and complexities faced by actual inhabitants.
Native American Policies and Resistance
Federal policies shaped the lives of Native Americans, highlighted by efforts to assimilate through boarding schools and the Dawes Act, which eroded Native land ownership.
Indian resistance persisted, exemplified by events like the Wounded Knee massacre which marked a violent end to Native resistance.
Conclusion: The Gilded Age's Legacy
The Gilded Age reflects the contradictions of American liberty, with the promise of opportunity overshadowed by social strife, economic inequality, and growing corporate power.
Its political system struggled to adapt to rapid changes, revealing deep societal tensions that would shape future reform movements.