THE GILDED AGE Industrialization, Big Business, and Organized Labor
THE GILDED AGE
Industrialization, Big Business, and
Organized Labor
OVERVIEW OF THE GILDED AGE
WHAT IS THE GILDED AGE?
• Term created by Mark Twain, famous author of Tom Sawyer and
Huckleberry Finn
• Gilded= coated with gold
• A time of
• Rapid Industrialization
• Development of Infrastructure
• Little government regulation of the economy
• After the end of the Frontier
EXPANSION OF INDUSTRY
• Changes in technology
• Fuel: Now using Kerosene,
Oil, Coal
• Iron and Steel become
important parts of Industry
• Steel is used for
• Railroads
• Buildings and Bridges
• Farm tools
• Food cans
KEY INVENTIONS
• Thomas Edison
• Made power plant/long-
lasting lightbulb
• With electricity, factories
can work more hours and be
located anywhere
KEY INVENTIONS
• The Typewriter!
• Telephone (1876)
• Invented by Alexander Graham Bell
• https://www.youtube.com/watch?v=gEGQUgWBQL
4
THE AGE OF RAILROADS
• By 1890, over 200,000 miles of RR
Track
• But every year, about 2000 RR workers
die and 20,000 are injured
• RRs built by Immigrants (Chinese in W
and Irish in E) and African Americans
• Railroads link the nation
• Travel and industry increases
• Time zones created to keep railroad
schedules
THE AGE OF RAILROADS
• Railroads cause industry to grow
• George Pullman invents a sleeping train car
• Railroads were usually corrupt
• Charged high prices to travel or ship by rail
• Bribed government officials
• Made millions through trickery
CONGRESS STEPS IN
• Congress tries to combat Corruption
• Supreme Court allows Congress to regulate trade
between states
• Interstate Commerce Act passed
• Prices have to be “reasonable and just” for people to travel
• But Act not strong enough to control the Railroads
GILDED AGE THEMES
• Big Business
• Businesses consolidate into big
industries
• The Rise of Organized Labor
• Laissez- Faire Economics
• Government was hands off, very little regulation
• Resulted in wealthy businesses and lots of corruption
GILDED AGE THEMES
• Urbanization
• Growth of the Cities and resulting
problems
• Immigration
• Millions of immigrants change the
makeup of our country
• Social Darwinism
• Survival of the fittest, the best
individuals will succeed
BIG BUSINESSDuring the Gilded Age
GOVERNMENT PRACTICES
• Laissez-Faire Economics
• Means “hands off”
• Government does not regulate business
• Results in very wealthy businesses, lots of corruption,
little competition
• Why?
• Social Darwinism: The idea that the best will succeed on
their own, so the Government does not need to do anything
MONOPOLIES AND INTEGRATION
• Many businesses in the Gilded Age became monopolies
• Having exclusive (or only) control of the supply or trade of a
good or service
• Two tactics
• Horizontal Integration: Buying out competitors
• Vertical Integration: Buying out suppliers in every step of
creating your good
ROBBER BARONS
• A person who has become rich
through ruthless business practices
• Andrew Carnegie (Steel)
• Horizontal Integration: Bought out his
competitors
• Vertical Integration: Bought his
providers of raw materials and
transporters of his goods
ROBBER BARONS
• John D. Rockefeller (Oil)
• Created Standard Oil
• Bought other oil companies
(Horizontal integration)
ROBBER BARONS
• Cornelius Vanderbilt
(Railroads)
• J.P. Morgan (Banking)
• Some robber barons
contributed money to
philanthropy/charity
MONOPOLIES AND TRUSTS
• Robber Barons created monopolies
• Had control over all competition
• Also created trusts
• Companies that agreed to work with
one another for a common goal
• What is the problem with this???
SHERMAN ANTI-TRUST ACT
• In 1890, Congress
passed the Sherman
Anti-Trust Act
• Outlawed trusts and
monopolies
• But VERY difficult to
enforce
WORKING CONDITIONS
• TERRIBLE
• Long hours
• Dangerous conditions
• Bad living conditions
• Child Labor
• To try and improve
working conditions,
people began to form
Labor Unions
UNIONS AND STRIKES
• Union: A group of workers who want to protect
their rights
• Unions often utilized strikes as tools
• Meaning all workers would agree not to go in to work
• They know the company needs them to work and produce
goods, so they hope they will gain power by not working
• Usually ended in violence
ORGANIZED LABOR
During the Gilded Age
LABOR UNIONS AND TACTICS
LABOR UNIONS AND TACTICS
• Labor Union
• Workers who organize against their employers to seek better
wages and working conditions
• Labor Strike
• Workers stop working until their demands are met
• Boycott
• People refuse to buy a company’s product until the company
meets demands
LABOR LINGO
• Scab Workers: New workers brought in to replace strikers
and work for less pay
• Black List: List of people disliked by business owners
because they led Unions
• Collective Bargaining: Employers and Unions sit down to
negotiate
WHY NOW?
• Immigration, Urbanization, and
Industrialization in the Gilded
Age leads to large
disenfranchised population
• However, Labor Unions remain
to this day!
FORMING THE UNIONS
• Union Membership
grew from about the
1880s on
• In 1900, 1 in 12
workers were in
Unions
NOTABLE UNIONS
• The Knights of Labor
• Loose federation of workers from all different trades, biggest
Union
• Women were allowed to join
• Biggest strikes involved railroad workers
• Wanted the outlawing of Child Labor
• Wanted gender equality in pay
NOTABLE UNIONS
• The American Federation of Labor
• Founded by Samuel Gompers
• Organized only skilled workers
• Focused on 8-hour workday and end to child labor
• Biggest strikes involved industrial workers
NOTABLE UNIONS
• The International Workers of the
World (IWW or Wobblies)
• Most radical group
• Extreme tactics and socialism
BIGGEST STRIKES
• Great Railroad Strike of 1877
• Railway workers protested unfair wage
cuts and unsafe working conditions
• Violent, unorganized strike
• Put down when President Hayes sent in
federal troops
BIGGEST STRIKES
• Haymarket Square Riot (1886)
• In Chicago, workers went on strike for an 8 hour
workday
• Police came to crush strike, killed and wounded many
• The next day a rally was held in protest
• Someone threw a bomb and killed 7 police officers
• The police retaliated, killing 10 workers and wounding 50
• Leads to nationwide distrust of labor
BIGGEST STRIKES
• Homestead Strike (1892)
• In Pennsylvania, Andrew Carnegie cut
wages of his steelworkers
• Workers went on strike
• Carnegie’s men in charge called in the Pinkerton police force
• Violence between strikers and Pinkertons, federal troops sent in to calm
situation
• Steelworkers end up losing power and calling off strike
BIGGEST STRIKES
• Pullman Strike (1893)
• In Chicago, railroad workers’ pay was cut, but they
had to pay the same for company housing
• Nationwide railroad strike shut down the railroads
• President Grover Cleveland sent in federal troops,
arguing that the trains HAVE to run for the
government to work
• Court system and military used to limit the power of unions