What was the Gilded Age? | US History | Khan Academy

Summary

The Gilded Age (1870-1900) was a period of rapid industrialization in the US, marked by the rise of railroads, oil, and steel industries. It saw the emergence of powerful industrial magnates like Rockefeller and Carnegie, who shaped the era. Despite economic growth, this period was also characterized by stark social disparities, with laborers facing harsh working conditions and child labor prevalent. The term 'Gilded Age' reflects the thin veneer of prosperity over a reality of inequality. The script draws parallels with today's tech-driven economy, where innovation and wealth creation coexist with concerns about growing disparities.

Takeaways

• 🗓️ The Gilded Age spanned from approximately 1870 to 1900, marking a period of rapid industrialization and urbanization in the United States post-Civil War.
• 🏙️ Cities saw a significant increase in population as more people moved from rural areas, with the railroads playing a pivotal role in connecting the nation and fueling growth.
• 🚂 The completion of the continental railroad in 1869 and the rise of industries like oil, led by figures like John D. Rockefeller, transformed the American economy.
• 💼 Key figures of the era, such as Rockefeller, Vanderbilt, Carnegie, and J.P. Morgan, held immense power and were considered the 'superheroes' of American industry.
• 📈 While industrialization led to economic growth, it also resulted in stark social disparities, including the exploitation of labor with no protections, child labor, and poor working conditions.
• 🏛️ The term 'Gilded Age' originates from a novel by Mark Twain, symbolizing a thin layer of gold over a base of cold reality, highlighting the contrast between the wealthy and the poor.
• 💰 The era was characterized by vast wealth accumulation among a few, with some individuals earning more in minutes than the average worker in a week.
• 🛠️ Technological advancements and financial mechanisms enabled the growth of industries and the concentration of wealth, leading to the creation of monopolies and increased prices.
• 🧬 The concept of 'survival of the fittest' from social Darwinism was used to justify the laissez-faire economic policies and the belief that the best people would naturally rise to the top for the benefit of society.
• 🔄 The Gilded Age eventually faced moderation through government intervention and the rise of labor movements, which sought to address worker exploitation and improve conditions.
• 🔧 The Triangle Shirtwaist Fire in 1911 was a turning point that highlighted the need for labor reforms and led to the organization of labor unions and consumer activism to push for change.

Q & A

What is the Gilded Age and when did it occur?

The Gilded Age is a period in American history from about 1870 to 1900, characterized by rapid industrialization and urbanization following the Civil War. It marked the rise of industrial tycoons and significant economic disparities.

What was the role of railroads in the Gilded Age?

The railroads played a pivotal role during the Gilded Age by connecting the country, facilitating the movement of goods and people, and contributing to the growth of industrialization.

Who were some of the prominent figures of the Gilded Age?

Prominent figures of the Gilded Age include John D. Rockefeller, Cornelius Vanderbilt, Andrew Carnegie, and J.P. Morgan, who were industrial magnates and amassed significant wealth and power.

How did the Gilded Age give rise to disparities in wealth and working conditions?

The Gilded Age led to vast disparities in wealth due to the lack of labor laws and regulations, resulting in poor working conditions, long hours, child labor, and a lack of worker protections.

What is the origin of the term 'Gilded Age'?

The term 'Gilded Age' comes from a novel by Mark Twain, referring to the superficial appearance of wealth and prosperity masking the underlying social and economic issues of the time.

How did the wealth accumulation during the Gilded Age compare to the average worker's income?

The wealth accumulation of the industrial tycoons was astronomical compared to the average worker's income, with some tycoons making more in a minute than workers made in a week.

What were the technological and financial factors that contributed to the growth of the Gilded Age?

Technological advancements such as the railroads, steel production, and the rise of oil, along with financial innovations that facilitated capital movement, contributed to the growth of the Gilded Age.

What is the concept of laissez-faire economics and how did it relate to the Gilded Age?

Laissez-faire economics is the belief in minimal government intervention in the economy, allowing it to operate freely for maximum efficiency. This concept was prevalent during the Gilded Age, leading to a lack of regulation and contributing to the disparities.

How did the idea of 'survival of the fittest' influence the Gilded Age?

The idea of 'survival of the fittest,' popularized by Herbert Spencer and associated with social Darwinism, justified the vast wealth accumulation and lack of regulation, suggesting that the success of the few benefited society as a whole.

What were the eventual responses to the issues of the Gilded Age?

Responses to the issues of the Gilded Age included government reforms and the rise of labor movements, which sought to improve working conditions and implement regulations to protect workers.

How did the Triangle Shirtwaist Fire of 1911 impact the perception of labor conditions during the Gilded Age?

The Triangle Shirtwaist Fire highlighted the dangerous working conditions and lack of labor rights, leading to increased public awareness and the eventual organization of labor unions to fight for better conditions.

Outlines

00:00

🏗️ The Gilded Age: Industrialization and Inequality

The Gilded Age, spanning from approximately 1870 to 1900, marks a period of significant transformation in America following the Civil War. It was characterized by the rapid rise of industrialization, with cities growing as the population shifted from rural to urban areas. The era saw the birth of the railroads, the emergence of oil with figures like John D. Rockefeller, and the dominance of industrial magnates such as Vanderbilt, Carnegie, and J.P. Morgan. These 'superheroes' of the time led to remarkable economic growth but also to stark social disparities, including the absence of labor laws, child labor, and poor working conditions. The term 'Gilded Age' reflects the thin veneer of gold over a harsh reality, as the wealthy few lived opulently while the majority faced exploitation. The period is also noted for its laissez-faire economic policies, influenced by social Darwinism, which justified the concentration of wealth and power in the hands of a few as a natural outcome of competition and survival of the fittest.

05:02

🛠️ The Aftermath of the Gilded Age: Reforms and Reactions

The Gilded Age eventually faced moderation through government intervention and the rise of labor movements. The government, which had been largely inactive during the period, began to reassert its role, and labor unions started to organize to address the exploitative conditions of workers. The era's politics were dominated by one-term presidents who focused on securing re-election through the spoil system, neglecting substantive reforms. However, incidents like the Triangle Shirtwaist Fire in 1911, which resulted in the tragic deaths of locked-in garment workers, highlighted the urgent need for change. This led to increased pressure on businesses to improve labor conditions, including worker hours and safety standards. The response to the Gilded Age included efforts to slow down the unregulated growth of industry and to demand more equitable treatment of workers, setting the stage for significant social and economic reforms.

Keywords

💡Gilded Age

The Gilded Age refers to a period in American history from approximately 1870 to 1900, characterized by rapid industrialization and economic growth, but also by significant social disparities and labor exploitation. It is called 'Gilded' because of the thin layer of gold over a harsh reality, as depicted in the transcript with the vast wealth of industrialists like Rockefeller contrasted with the poor working conditions of the labor force.

💡Industrialization

Industrialization is the process of social and economic change where a human society is transformed from a manual labor and craft-based economy to one dominated by industry and machine manufacturing. In the context of the video, it is the driving force behind the Gilded Age, leading to the rise of cities and the creation of wealth, but also to the exploitation of workers with no labor laws to protect them.

💡Railroads

Railroads were a critical component of the Gilded Age's infrastructure, facilitating the expansion of trade and industry across the United States. The script mentions the continental railroad being connected in 1869, symbolizing the era's connectivity and the pivotal role of railroads in the industrial boom.

💡John Rockefeller

John Rockefeller was an American industrialist who is a prime example of the wealth accumulation during the Gilded Age. He is known for his dominance in the oil industry and as the first billionaire in America, illustrating the extreme wealth disparities of the time.

💡Labor Laws

Labor laws are regulations that protect workers' rights and ensure fair working conditions. The transcript highlights the absence of such laws during the Gilded Age, leading to exploitative practices like child labor and workers laboring under harsh conditions without protections.

💡Carnegie and JP Morgan

Andrew Carnegie and J.P. Morgan were titans of industry during the Gilded Age, representing the immense power and wealth that industrialists held. Their influence was so significant that they were likened to superheroes of the era, shaping the economic landscape and contributing to the disparities discussed in the video.

💡Survival of the Fittest

Survival of the Fittest is a term from evolutionary biology, but in the context of the video, it is used to describe the economic theory that justified the laissez-faire approach to the economy during the Gilded Age. It suggests that those with the most talent or resources will naturally succeed, and this success benefits society as a whole, even though it leads to inequality.

💡Laissez-Faire Economics

Laissez-Faire Economics is an economic system in which transactions between private parties are free from government intervention such as regulation, privilege, or subsidy. The video script describes how this belief system allowed for the unchecked growth of industry and wealth, contributing to the disparities of the Gilded Age.

💡Labor Movements

Labor movements are organized efforts by workers to achieve better working conditions, higher wages, and overall improvements in their quality of life. The script discusses how labor movements emerged in response to the exploitation during the Gilded Age, leading to strikes and consumer boycotts that pressured businesses to change.

💡Triangle Shirtwaist Fire

The Triangle Shirtwaist Fire of 1911 was a pivotal event that highlighted the dire working conditions of the time. The fire, in which doors were locked and over 40 workers died, is mentioned in the script as a catalyst for labor movements and a turning point in the public's perception of worker safety and rights.

💡Disruptive Technologies

Disruptive technologies are innovations that create a new market and value network and eventually disrupt an existing market and value network, displacing established technologies. The video script draws parallels between the Gilded Age and the modern era, with disruptive technologies leading to rapid changes in business and culture, and potentially contributing to economic inequality.

Highlights

The Gilded Age was a period from about 1870 to 1900, post-Civil War, marking America's rise as an industrial powerhouse.

Urbanization increased significantly, with more people living in cities by 1900 compared to 1850.

The birth of the railroads and the continental railroad connection in 1869 played a pivotal role in the era's industrialization.

The rise of oil and figures like John Rockefeller symbolized the immense power of industry leaders during this time.

The Gilded Age saw a stark contrast between the wealthy industrial magnates and the working class with no labor protections.

The term 'Gilded Age' reflects the outward appearance of wealth while hiding underlying social and economic disparities.

Rockefeller became America's first billionaire, and the era was marked by extraordinary displays of wealth.

The wealth disparity was vast, with some making more in a minute than others earned in a week.

Technological advancements and financial mechanisms were key drivers of productivity and industry growth.

Innovations in business structures, such as the creation of conglomerates, contributed to market dominance and price manipulation.

Laissez-faire economic beliefs and social Darwinism provided a theoretical backing for the unregulated growth of businesses.

The concept of survival of the fittest was used to justify the lack of government intervention in the economy.

The Gilded Age's laissez-faire approach was seen as beneficial for society's overall progress, despite individual hardships.

The era's end saw a rise in government regulation and labor movements in response to the social and economic disparities.

Political figures during the Gilded Age focused on re-election through patronage rather than addressing societal issues.

The Triangle Shirtwaist Fire in 1911 was a pivotal event that highlighted the need for labor reforms and union organization.

The Gilded Age's legacy includes the recognition of the need for government and labor to balance the unchecked power of industry.

Transcripts

- So what was the Gilded Age and why did it happen?

- Ah, the Gilded Age is this fascinating period

from about 1870 to 1900,

you can change the dates a little bit but that's,

so we're talking post Civil War,

America becomes an industrial powerhouse, the cities rise.

So in 1850 fewer people live in the cities

than in the rural part of the country,

by 1900 more people live in the city.

And basically you have the birth of the railroads,

the railroads get connected in 1869,

continental railroad going all the way across the country.

You have the rise of oil and John Rockefeller

and basically, this period,

think of Rockefeller and Vanderbilt, as,

and Carnegie and JP Morgan as powerful

the way we think of presidents.

Presidents during this period kind of were on the descent

but the magnets of industry, railroad, oil, steel,

those were all banking,

those were the superheroes in America,

and they led to this amazing growth in industrialization

but then also huge disparities.

No labor laws that we would be familiar with today.

So you had this industrialization with people

working in the industries who had no protections,

child labor, working 22 hours a day,

horrible health conditions.

So this gurgling, booming America,

but where there's great disparities

between who's doing well and who's not.

- And it was called Gilded because those who were doing well

were living very well.

- Right, Gilded as in a gilded frame, covered with cold

which came from a novel by Mark Twain.

And that's right, it takes on

the caste of this extraordinary wealth.

Rockefeller was the first billionaire in America,

Vanderbilt built the biggest house,

still the biggest house in America during this period.

So the wealth was, people would make eight to $10 in a week,

some of these tycoons were making eight to $10 in a minute.

And so that kind of vast wealth,

because you could only make so much wealth before,

this is just mountains of wealth

and then also, again, this great disparity.

- And it seems like it came from, really, technology.

Technology allowed all of this productivity,

the railroads, steel, et cetera, et cetera,

and then of course finance was able to get in there

and help move capital more efficiently.

What parallels do you see with our current age

where technology seems to be doing something similar

where we have all of these new industries, and new wealth,

but some fear that it might be causing some inequality.

- You have, yes, you have a couple of things.

You have innovation in these very different industries,

both innovation in the creation of things

but then also innovations in the structures of business.

Buying up small business, creating big conglomerates.

Then using that leverage and power

to then crowd out competitors for sure

but then also raise prices

because you're the only game in town.

And you also have business practices that are not

the sort of laissez-faire economic belief said essentially

that in the economy it was like in the American system,

which was let it operate.

Don't get in the way, don't mess with it,

because when it operates

it runs the most efficiently for America.

- In the end markets can be messy

but they're gonna have the best outcome.

- That's right.

- Is the argument behind laissez-faire.

- That's exactly right, and it got this wonderful assist

from Charles Darwin who said,

we can explain the growth of,

or you can explain the species

and we can explain our natural world

with this theory about the competition among the species

and this term survival of the fittest, social Darwinism,

survival of the fittest, which some,

and I certainly thought might've come from Darwin didn't,

it came from Herbert Spencer

who basically had an economic theory

of the survival of the fittest and then it went this way.

Some people have more talent than others

and when they exercise their talent they do very well

and that's the best thing for society.

It believed that society was ever increasing,

it didn't mean that every single person was increasing,

but that if you followed survival of the fittest

and the best people did the best

then ultimately society will always be

on an evolutionary plane of moving upward.

And so that was the theory behind

get out of the way of these big companies and big tycoons

and they will do the best for America

and so the reason that was important

was A, it kept government out of the way,

B, it kept religious, it created a religion,

it was a secular religion of course,

but it created a theory that said,

wow that looks like what you're doing

is totally self interested but there's this theory behind it

and everybody will improve so okay, go ahead.

- Yeah, that was the beginning

of Gordon Gekko's famous greed is good.

- Right, right, yeah.

Yeah, greed is good, so the comparison to our current moment

is you have huge disparity and technologies that are,

to use a cliche of the day, disruptive

that are completely changing

the way everybody does business,

changing when we think about the way

in which Americans behave, that rapid sense of change,

it's changing culture rapidly

and it's making big winners and losers

and those big disparities exist as well.

- How did the Gilded Age play out?

Were some of these forces moderated eventually,

maybe around 1900,

and do you think similar things might happen for us?

- There were two big moderation

in response to the Gilded Age.

You had government came awake again

and then you also had labor movements

that came into formation,

basically to slow down the growth

and the rapacious demands of the Gilded Age.

Politics during the Gilded Age kind of went,

became an offshoot of the titans of industry.

If you look at the presidency between 1876 and 1892

they're all one term presidents

and none of them get more than 50% of the vote

and basically what the presidents spend their time doing

is using the spoil system,

which is essentially putting people in jobs

to pay off the local bosses who helped them get elected.

So getting elected became a job of staying elected

and that meant dolling out patronage,

basically giving people jobs who were your friends

so that they would go and vote for you

because these elections were all very close

and that's not getting a lot of work done for the people.

Some of 'em, Rutherford B. Hayes

tried these little efforts at civil service reform,

which essentially meant putting people in jobs

who could monitor the factories,

make sure that people weren't getting abused

or that health wasn't declining

or that anything that a government might do

that we think of today

but his political patrons didn't want that.

So that was all very hard to do.

What happened on the worker's end is they realized,

and the most famous moment was in 1911,

the Triangle Shirtwaist Fire where

a number of women working in a garment factory are,

there's a fire and the bosses lock the doors

and I think 40 some odd women die, mostly women,

and it highlighted the labor issues

but labor unions start to organize

and there are huge clashes and strikes and consumer boycotts

and those start to put some pressure on business

to change their practices, at least in terms of worker hours

and the kinds of things that we now

would certainly take for granted.

- Fascinating.

- It's an incredible period. - Yeah.