Gilded Age Capitalism Causes and Consequences of Corporate Supremacy

How did corporations gain control of the economy in the Gilded Age? New technologies and scale of mass production requires large outlays of capital – “crowding out” of small producers Corporations become very large and very powerful

Corporations in Control Monopoly Power – Horizontal Monopoly Controlling all production within an industry e.g., owning all steel plants – Vertical Monopoly Controlling all aspects of the production process from start to finish e.g., owning mines, processing, steel plants, marketing

Corporations in Control Cartels Trusts Holding Companies

How did the wealthy justify their position in the Gilded Age? Individualism – Horatio Alger Social Darwinism – William Graham Sumner, Folkways (1906) The Gospel of Wealth – Andrew Carnegie

Gilded Age Philosophy Socialism – Active role for government Utopianism – Henry George, Progress and Poverty (1879) – Edward Bellamy, Looking Backward (1887) Anarchism

How did Gilded Age capitalism treat workers? De-skilling – From craft to industry Wages were low – Tied to prices – “piece work” Long hours

How did workers try to assert power in the Gilded Age? National Labor Union ( ) – William Sylvis – Political party “Molly Maguires”

How did workers try to assert power in the Gilded Age? Knights of Labor ( ) – Uriah Stephens; Terrance Powderly – Open to all workers (craft and industrial) American Federation of Labor (1886-present) – Samuel Gompers – Craft Unionism

Workplace Tactics Strike – Sit-down – Walkout Work to rule – Soldiering Sabotage – Sabots

Other Tactics Lobbying – Chinese Exclusion Act (1882) – Tariffs Elections – Greenback-Labor Party Public opinion

The Pinkerton Agency Private detective agency Hired by companies to: – Investigate workers – Disrupt union activity By 1870s, had developed private army