The Gilded Age
1877-1900
Key Individuals and Terms from
The Americans, Chapters 6-8
Analyzing the Term “Gilded Age”
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“Gilded” objects have a paper-thin layer of
gold-leaf over wood, plaster or metal. Today
objects are often painted gold to appear “gilded.”
Of course, the objects are not really made of
solid gold, they only look that way.
In the same manner, the “Gilded Age”
was not really the golden age that it
might appear to have been on the
surface. It was a time in which
people faced many economic and
social problems. So, the expression,
Gilded Age, has a double meaning.
Industrialization and
the Rise of Big Business
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While the early Industrial Revolution occurred
in Europe and America between 1750 and
1850, a second phase of the Industrial
Revolution took place in the late 1800s.
During this time period, huge corporations
were formed that employed thousands and
produced enormous amounts of goods. The
founders of these companies amassed great
wealth while their workers were poorly paid.
Captains of Industry
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Andrew Carnegie was one of
the most famous self-made
men of this period.
He bought out his suppliers
and his competitors until he
controlled the steel industry.
Carnegie Steel produced most
of the nation’s steel in the
latter half of the 19th century.
Carnegie is also known for his
generous charitable donations.
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Railroads became one of the most powerful
and profitable industries in the late 1800s,
since almost all other industries depended
upon them for transportation.
The first transcontinental
railroad was completed
in 1869.
One man who made his
fortune in the railroad
industry was Cornelius
Vanderbilt.
The Vanderbilt’s “Marble House”
Estate in Newport, Rhode Island
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John D. Rockefeller-turned
his Standard Oil Company
into a “trust” by buying stock
in his competitors companies
until he controlled them.
The Sherman Anti-Trust Act
was passed in 1890 to make
trusts illegal. Companies
found many ways to get
around this law. In 1906, the
government brought suit
against Standard Oil and in
1911 the trust was finally
ordered to dissolve.
John D. Rockefeller Sr. and Jr.
The Problems of Industrial Workers
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There was almost no government regulation of
businesses at this time, therefore there was
1) no minimum wage, 2) no maximum number
of hours per week, 3) no higher pay for
overtime, 4) no regulation of unhealthy or
unsafe working conditions, and 5) no health
insurance or other employee benefits.
Industrialization created low-wage, low-skilled
jobs that made employees easy to replace.
This led to the growth of labor unions.
The Early Labor Union Movement
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The first labor unions were formed within
certain trades or industries. They tried to
improve wages and working conditions by
collective bargaining and threatening strikes.
Between 1877 and 1893 there were several
huge strikes, like the Pullman railroad strike
in Chicago. These strikes often turned
violent when police, company guards or
federal troops were ordered to end them.
Union popularity declined because the public
associated labor unions with violence.
Radical Unionism Develops
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Eugene V. Debs, who was
imprisoned during the Pullman
Strike, grew to be completely
disillusioned with capitalism.
He became a spokesman for
the Socialist Party of America,
running for US president 5 times.
The Industrial Workers of the
World advocated government
control of all businesses.
Most unions were not as radical.
The Problems of Farmers
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Because of the expansion of farming as settlers
moved westward, there was an overproduction
of crops which led to a drop in farm prices.
At the same time, railroad rates were rising.
Farmers living in remote areas were very
dependent on the railroads to transport crops.
Farmers became deeply in debt.
Farmers began the Populist Movement asking
for railroad regulation and monetary reform to
relieve their indebtedness.
The Problems of Immigrants
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The thousands of immigrants that came from
Southern and Eastern Europe from
1890-1915 were often poor and illiterate.
They accepted unskilled jobs in industry and
had to move into the overly crowded cities.
There they faced a triple hardship: low
wages, desperately poor housing conditions
and nativism (prejudice against immigrants).
Nativists encouraged the government to pass
immigration restriction laws.
The Problems of Minorities
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Discrimination against African-Americans was
legalized by the passage of Jim Crow laws
allowing segregation. The constitutionality
of these laws was upheld by the Supreme
Court decision in Plessy v. Ferguson.
The right to vote promised by the Fifteenth
Amendment was undermined by the use of poll
taxes, literacy tests, and grandfather clauses.
Asians also faced discrimination. The Chinese
Exclusion Act banned further immigration from
China.
Urban Problems
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The industrial cities of the 1800s grew rapidly and
poor workers lived in slums.
Police and fire departments were understaffed.
There was not enough clean water and sewer systems
were inadequate.
Tenement houses were crowded and unsafe.
City governments were often corrupt. These “political
machines” won the votes of the immigrants, but often
abused their power.
Graft is when a public official uses his office to make
himself rich, through bribery or stealing public funds.
Early Reformers
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There were no welfare programs during this
time. The government did not help the poor.
Using private donations and her own funds,
Jane Addams established the first
“settlement house” in Chicago to provide
services to the residents of the slums.
Harvard educated W.E.B. DuBois helped
found the N.A.A.C.P to help his fellow
African-Americans achieve fairer treatment.