The Gilded Age of America, coined by Mark Twain, referring to gilding an object with a superficial layer of gold, took place in post the re-construction era of the 19^th century.  In this time period of American history the nation grew like never before in many different areas. 

During the Gilded Age, the U. S. economy grew at the fastest rate in history with real wages, wealth, GDP, and capital formation all increasing rapidly.  This was the age of prospering the middle class in America, the age of the second American industrial revolution. Corporations became the dominant form of business organization with businessmen such as, John D. Rockefeller, Andrew W. Mellon, Andrew Carnegie, J. P. Morgan and Cornelius Vanderbilt.  There was a small growing labor union movement led by Samuel Gompers.

Industrial and Economic Growth

The Gilded Age was rooted in industrialization, especially heavy industry like factories, railroads, and coal mining. The first transcontinental railroad was completed in 1869.  America’s steel production surpassed that of Britain, Germany, and France combined. Increased mechanization of industry increased greatly, opening machine shops with highly skilled workers and engineers. Engineering colleges were established to meet the enormous demand for expertise. Companies developed systems, such as railroad systems with clear chains of commands within.

From 1860 – 1890 over 500,000 patents were issued for new inventions to men like George Westinghouse, air brakes on trains; Theodore Vail, American Telephone & Telegraph Company; Thomas Edison, cofounder of General Electric Corporation; and John D. Rockefeller, founder of the Standard Oil Company.

The Gilded Age saw the greatest period of economic growth in American history, producing over one third of international goods such as oil and steel.  From 1869 -1879, the US economy grew at a rate of 6.8 % for NNP (GDP minus capital depreciation) and 4.5 % for NNP per capita. The nation’s wealth grew at an annual rate of 3.8 % during the 1880’s while the GDP doubled.   

Politics  

Gilded Age politics featured very close contests between the Republicans and Democrats with voter turnout exceeding over 90 percent in some states. During the Reconstruction era, Americans had seen corrupt state governments, massive fraud in cities controlled by political machines, political payoffs to secure government contracts, such as the financing of the transcontinental railroad, and evidence of government corruption during the Ulysses S. Grant Administration.  There was a sense that government intervention in the economy inevitably led to favoritism, bribery, kickbacks, inefficiency, waste and corruption.  

Democrats led the call for a free market, low tariffs, low taxes, less pending and in general, a hands-off government, while denouncing overseas expansion.  Many businessmen and professional people supported this approach, however most Republicans supported high tariffs to protect the high wages in America from the low wage system in Europe.  Some Republicans said that high tariffs benefited the rich industrialist over their middle class employees. 

The Republican and Democratic political platforms remained remarkably constant during the Gilded Years.  Republicans generally favored inflationary, protectionist policies while Democrats favored hard-money, free trade and other libertarian policies.

Immigration

During the Gilded Age, approximately 10 million immigrants came to the United States.  Some were prosperous farmers looking for fresh lands, and many were impoverished peasants looking for the American Dream in mills, mines and factories.  Most stayed away from the poverty-stricken south.

To accommodate the heavy influx from Europe, the federal government in 1892, opened a reception center at Ellis Island near the Statue of Liberty. 

The construction of the Central Pacific Railroad in California and Nevada was handled largely by Chinese laborers.  Labor union strongly opposed their presence.  Congress banned Chinese immigration the Chinese Exclusion Act in 1882.

Urban Growth

The population of Northern cities began to swell, as a result of the need for factory workers and the massive influx of European immigrants. The rapid growth of cities brought about modern architectural and transportation changes.  Steel frames used in skyscrapers with new safety measures on elevators helped buildings reach new heights.  The American cities expanded from horse drawn carriages to electric street cars and subways. 

As immigration increased in cities so did poverty, forcing immigrants to live in the poorest urban areas, such as, Hell’s Kitchen in Manhattan.  These areas were quickly overtaken by crime gangs like the Bowery Boys.

Women Rights and Social Growth

During the Gilded Age many new social movements took hold in the United States.  Many women, disappointed the Fifteenth Amendment did not extend voting rights to them remained active in politics, focusing on issues important to  them.  Women joined together in an attempt to bring back morality to America with organizations such as, Women’s Christian Temperance Union.  Other women took the issue of women’s suffrage, with leaders like Susan B. Anthony of the National American Woman Suffrage Association to secure the right of women to vote.     

The development and acceptance of the sewing machine changed the domestic lives of women.  According to the Singer Corporation, by 1889, over 3 million homes had a sewing machine.   

During the Gilded Age social Darwinism was introduced to America, by an English philosopher, Herbert Spencer.  The new concept justified the stratification of the wealthy and poor and coined the term “survival of the fittest.”  During this period were discussed topics such as, assistance to the poor actually weakens their ability to survive in society and poverty causes crime not biology. 

Not everyone agreed with the social Darwinists and organizations to help the poor were formed such as, the YMCA and the Salvation Army. 

The wealth of the Gilded Age was highlighted by the American upper class’ opulence, but also by the rise of American philanthropy that used private money to endow thousands of colleges, hospitals, museums, academies, schools, opera houses, public libraries, symphony orchestras, and charities.  John D. Rockefeller donated over $500 million to various charities, which was over half his net worth.

The Gilded Age coincided with the Panic of 1893, resulting in a deep depression, which lasted until 1897 and marked a major political realignment in the election of 1896. 

So the question remains, was the Gilded Age indeed superficial, just an overlay of prosperity, or did it build on the real foundations of America?