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.