Gilded Age Politics

Gilded Age Politics

Overview

  • Politics in the Gilded Age was characterized by a strong sense of corruption due to the prevailing laissez-faire attitude toward government intervention.

Major Parties

  • Democrats:
    • Primarily Southerners, but not exclusively.
    • Advocated for states' rights and racial segregation.
    • Relied on support from big city political machines and the growing immigrant population.
  • Republicans:
    • Northern, more industrial party.
    • Supported by Black people, middle-class businessmen, and Protestants.
  • Shared Characteristics:
    • Neither party had a strong legislative agenda.
    • Politics was focused on winning elections and awarding federal jobs to loyal party supporters through patronage.

Contentious Issues

  • Civil Service/Patronage:
    • Patronage: Winning candidates rewarded supporters with federal jobs.
    • President James Garfield's assassination highlighted the problems with the patronage system and It happen because a job seeker was turned down.
    • Pendleton Act of 1881:
      • Replaced the patronage system with competitive examinations for federal jobs.
      • Aimed to correct the civil service system.
      • Candidates shifted to receiving funding from wealthy individuals, weakening the debt-based patronage system.
  • Money:
    • Gold Standard:
      • The U.S. money supply was based on the gold standard.
      • The government printed only the amount of paper currency backed by gold reserves.
      • The gold standard maintained currency value against inflation.
      • Inflation: Rising of prices, causing currency to lose value.
    • Arguments for Expansion:
      • Farmers and entrepreneurs wanted to expand the money supply by including more paper money beyond the gold standard and the unlimited coinage of silver.
      • More currency would enable borrowing more money at lower interest rates.
      • Debts could be paid with inflated dollars.
  • Tariffs:
    • Taxes on imported goods that significantly funded the federal government (over half of federal revenue in the 1890s).
    • Protective Tariffs:
      • Implemented during the Civil War to protect American industry and raise funds for the war.
      • Protected American businesses by making imported goods more expensive.
      • Burdened consumers and farmers.
    • Impact on Farmers and Consumers:
      • Retaliatory tariffs from other nations reduced international sales of American crops.
      • Consumers faced higher prices for imported goods.

Populist Party

  • Populism:
    • Focuses on the concerns of the people.
    • Sought to address the concentration of economic power held by elite banks and trusts.
  • Omaha Platform:
    • Political Reforms:
      • Advocated for the direct election of Senators.
      • Use of initiatives and referendums to allow people to propose and vote on legislation.
    • Economic Reforms:
      • Unlimited coinage of silver.
      • Graduated income tax (higher income, higher tax rate).
      • Eight-hour workday.
  • Impact:
    • No populist candidate ever won a presidential election.
    • The party gained attention and influenced the Democratic and Republican parties.
    • In the 1896 election, the Democratic Party adopted the unlimited coinage of silver from the populist platform, securing the populist vote.

Urban Politics

  • Urban political parties were controlled by corrupt political machines that secured votes for their parties.
  • Political Machines:
    • Headed by "bosses" who distributed orders and rewarded loyal members with jobs.
    • Tammany Hall:
      • The most famous political machine, located in New York City, run by Boss Tweed.
      • Addressed the needs of businesses, immigrants, and the poor to ensure community support and votes.
      • Engaged in deceit and fraud, stealing millions of dollars from taxpayers.
      • The relationship between machines and patrons was mutually beneficial despite corruption.