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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.