6.7 Labor in the Gilded Age

Labor in the Gilded Age

Socioeconomic Changes and Industrial Capitalism (1865-1898)

  • Industrialization created a stark division between rich and poor.
Wealthy Business Owners
  • Wealth surpassed previous generations.
  • Practiced "conspicuous consumption" (Thorstein Veblen).
  • Example: The Biltmore House:
    • Largest private residence in the U.S.
    • Over 175,000 sq ft, 35 bedrooms, 45 bathrooms.
    • Owned by Vanderbilt as a vacation home.
  • Not all wealthy individuals were as extravagant as Vanderbilt, but the practice was common.
Working Class
  • Many lived in poverty with wages below a comfortable standard of living.
  • Suffered during economic downturns like the Panics of 1873 and 1893.
  • Despite hardships:
    • Mass production led to decreased prices of goods.
    • Wages rose across the board.
    • More goods and services were available to industrial workers (immigrants and migrants).
  • Many Americans experienced a rising standard of living despite the growing gap between rich and poor.

Labor Activism

Working Conditions
  • Factory, railroad, and mining work were dangerous.
  • Thousands of injuries and deaths occurred.
Labor Unions
  • Workers formed unions to address issues.
  • Unions provided a collective voice that individual workers lacked.
  • Tactics included:
    • Political action.
    • Slowdowns.
    • Strikes.
Examples of Strikes
  • Great Railroad Strike of 1877:
    • Railroad companies cut wages during a recession.
    • Unionized workers protested.
    • Spread to 11 states, shutting down over 60% of railroads.
    • Violence erupted, and President Hayes sent in federal troops.
    • Over 100 people died.
    • Railroad employers eventually negotiated with workers.
  • Pullman Strike:
    • Pullman company (sleeping cars) cut wages during the Panic of 1893.
    • George Pullman fired workers who tried to bargain.
    • Eugene V. Debs (union leader) directed members not to work on trains with Pullman cars.
    • Railroad owners sided with Pullman and connected Pullman cars to trains carrying federal mail.
    • Eugene Debs and other leaders were jailed for hindering federal rail traffic.
    • The strike was broken.

Major Labor Unions

Knights of Labor
  • Went public in 1881.
  • National union (open to almost anyone).
    • Included black laborers and women.
  • Goals:
    • Destruction of trusts and monopolies.
    • Abolition of child labor.
  • Child Labor:
    • Children as young as 10 worked in factories.
    • By the end of the 19th century, children aged 10-15 constituted ~18% of the workforce.
    • Children were subject to the same injuries and deaths as adults.
  • Peak membership: over 700,000.
  • Decline:
    • Haymarket Square Riot (1886):
      • Members gathered to celebrate the May Day labor movement and protest for an 8-hour workday.
      • A bomb exploded (likely set off by an anarchist unaffiliated with the Knights).
      • The public associated the bombing with the Knights of Labor.
      • Labor unions were viewed as violent and radical.
      • Membership declined.
American Federation of Labor (AFL)
  • Association of craft workers led by Samuel Gompers.
  • By 1891, boasted a million members.
  • Goals: higher wages and safer working conditions.