Gilded Age Economics and Politics

Terms and People spoils system – a system in which politicians awarded government jobs to loyal party workers with little regard for their qualifications civil service – government departments and their nonelected employees Pendleton Civil Service Act – law that created a civil service system for the federal government in an attempt to hire employees on a merit system rather than on a spoils system gold standard – using gold as the basis of the nation’s currency; supported by Republicans

Why did the political structure change during the Gilded Age? Congress passed few laws between 1877 and 1900. It was an era marked by inaction and political corruption. The Gilded Age raised questions about whether or not democracy could succeed in an era dominated by powerful industrial corporations and men of great wealth.

Between 1877 and 1897, party loyalties were evenly divided. • Neither political party achieved control of both the White House and Congress for more than two years in a row. • Presidents during the Gilded Age were elected only by slim margins. • This made it difficult to pass new laws. Between 1877 and 1897, party loyalties were evenly divided.

Grover Cleveland Elected 1884 – 1st Democrat in 24 years Maintained a reputation of integrity 1888 – won the popular vote but electoral college chose Benjamin Harrison 1892 – Cleveland became president again

Corruption plagued national politics as many officials accepted bribes. Cartoonists such as Thomas Nast worked to expose corruption, especially with Boss Tweed Nast cartoon of “Boss” Tweed

The spoils system was the glue of the political parties. The spoils system, in which party supporters received government jobs regardless of their qualifications, shifted power to a few. This system made the political parties extremely powerful. 75-80% of Americans that could vote, did vote. 7

Ending the spoils system was difficult. A movement arose to promote civil service reform which includes federal jobs in the executive branch. Reformed system: govt workers would get their jobs due to their expertise and maintain those jobs regardless of which political party won the election. Vice President Arthur is finally going to make change happen, in part, because President James Garfield was assassinated by a man who believed the Republican Party owed him a job. Ending the spoils system was difficult. 8

1882 - Chester A. Arthur became President and supported civil service reform. In 1883, he signed into law the Pendleton Civil Service Act, which established a merit-based system for government employment. Civil Service Commission – wrote an exam – had to do well on the exam to be considered for a government job

Economic debates focused on tariffs and monetary policy during the Gilded Age. Republicans favored high tariffs (taxes on imported goods) beause they believed it would allow American industry to grow. Monetary policy disputes centered on whether or not to maintain the gold standard, where gold is the sole basis of the nation’s currency.

Some wanted to use both gold and silver. The Coinage Act of 1873 reversed the policy of having the government issue both gold and silver coins, causing protest because some wanted to be able to use silver coins. Some wanted to use both gold and silver. Some people wanted to use only gold as money. Bankers were worried silver would impact trade and undermine the economy. Farmers were against the gold standard because they claimed it would cause prices for their crops to decline. 11