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.