After Reconstruction, the United States made great technological advancements while becoming more factory orientated rather than the previous focus on agriculture. The time period evolved into the so called Gilded Age. Obtaining it's name from on of Mark Twain's novels, the Gilded Age refers to supposed wealth, a "layer of gold". On the surface this time period saw huge progress in the economic conditions as well as overall living conditions, but underneath was corruption as well as an unequal distribution of wealth among the people. Between 1870 to 1900 big business took control of both the economy and politics, however much of their success was achieved through corruption and creating unfavorable business environments, such as the use of horizontal and vertical integration-this created an anti-competition environment that was able to cut out competitors and set their own prices, using cheap immigrant labor to keep factory workers wages as low as possible, and finally the corruption by using the monopolies influence to bribe government officials-especially senators. We also see the other perspective through the response of the American people, from farmers to factory workers, low wages and high price caused unrest in the form of labor unions as well as strikes from workers and farmers uniting to form different movements to express their grievances and fight for protection.
During this time period one of the way monopolies were able to take control of the economy was by creating unfavorable business environments. By implementing economic scale, buying in bulk, monopolies were able to sell products at lower price and effectively take down their small owner competition. Once there were no competitors left the monopoly could control enough of the market to set price however they please without being under cut. This anti-competition environment is exemplified by George Rice's article "How I Was Ruined by Rockefeller" in New York World.(Doc. H) He was a small business owner who's business failed because of Rockefeller's monopoly the Standard Oil Company; Rockefeller used economic scale to sell the same quality oil as Rice but at one to three cents less. Rockefeller and other monopolies was apply to achieve this power by using horizontal and vertical integration. Both of these were legitimate business practices but when took to extremes they created that anti-competition environment that ruined smaller businesses. Although from the Historical Statistics of the United States, Indexed Price 1870-1890,indexed prices referring to the average prices for goods and service, it can be inferred that despite small farms and business failing because of the anti-competition environment everyone's overall living conditions were rising, some more slowly than others.(Doc. A) As companies produced in bulk they were able to lower prices on food and fuel, but the cost of living doesn't see the same major decrease. This slow rise of living condition usually applied to the factory worker, who lagged behind the rich monopolies and growing middle class.
The factory workers were becoming the backbone of society however they were being devalued for their services. Most companies in this time adopted Taylorism, dividing up work into small individual repetitive tasks to increase production. With the development of this new system as well as new technologies,such as assembly line, making the demanded for skilled worker decrease. By not having skilled workers companies could cut wages and force long hours because employs were now easily replaceable, especially with the waves of immigrants looking for work opportunities. But preforming these menial job made people lose pride in their own workmanship. This effect is noted by David A. Wells, an engineer and economist, in Recent Economic Changes and Their Effect on the Production and Distribution of Wealth and the Well-Being of Society. (Doc. C) Wells compares modern business with a military organizations where the workers are soldiers obeying orders to perform one simply task. He goes further to say this is destroying the pride of the workmanship which is a special characteristic of American labors.This military view is developed farther by a photograph of female typist in cicra(Doc. J) that shows all the women in uniforms performing the same task. This reinforces the fact their is no individualism by forcing everyone to look the same. His analyze of labor is even more powerful because he does not have the bias of an worker but rather an educated view as an economist. If he is perceiving a problem in this system so early, 1889, it could be seen as a precursor for the future unrest soon to be seen with labors.
Corruption was the final way in which big business was able to rapidly take control of the developing consumeristic economy by bribing political leaders. Usually the business giants would target the Senate for briber because they are not popularly elected. All of these factors made them prime targets to be drawn into fowl business. Their ability to be corrupted became well know not only by business member but the public. The corruption was publicized by Joseph Keppler, 1889, political cartoon "The Bosses of the Senate"(Doc. D).The cartoon illustrated the member of senate surrounded by all the big monopolies, while people entrance is locked-leaving only the monopolies influence on the senators. By showing the senators so controlled by the monopolies shows how the people felt. They were being over powered by the big business and felt that they were unable to hold any influence over the political decisions being made.
After seeing the ways in which monopolies were able to take control of the economy, we can assess the American people's responses staring with the farmers.
The farmers throughout this time period formed various different political movements to fight for their demands. The first to be formed was the Grangers, who first gathered together simply as a social outlet for the isolation. However they later began to focus on the economic possibilities by attempting to organize marketing cooperatives to cut out the middle man, as well as urging political action to curb monopolistic practices by railroads and warehouses. Labor leader George E. McNeill, 1887 The Labor Movement: The Problem of Today tries to exploit the corruption of the Railroads and the so called Railroad kings(Doc. B). He claims the Railroad presidents control not only the freight prices and monopolized food and fuel industries but the government itself. He hints that railroad labor and farm unrest is likely do to the corruption of the Senate and how the government favors railroad interests. The Grangers upset about this as well as the long-haul vs. short-haul differentials called for the government to take direct ownership over railroads. Trying to appease the movement the government passing the Interstate Commerce Act in 1887 which declared that all interstate rail rates must be "reasonable and just". However this was ineffective because reasonable and just rates were never clearly defined, as well as having to small of a commission to enforce the act and repeatedly having courts refuse to enforce the law. This of course was perceived by the people as they created the Farmers alliances,Northern,Southern and colored, to replace the old failing Grangers. These alliances lead to the birth of the People's Party. There purpose was laid out in the People's Party Platform laid out in July 5, 1892(Doc. F). They wanted to the government to be for "the plain people" rather than the monopolies that politicians seemed to be creating. This was perceived through the corrupt favoritism displayed to these big businesses. They urged the government, meaning the people, to expand its power to stop the oppression and injustice of monopolies so that the common people don't have to suffer through poverty. This 1892 election demonstrated the potential power of the new movement. The populist presidential candidate James B. Weaver carried 8.5 percent of the total votes, over 1 million. Nearly 1,500 Populist candidates won election to seats in state legislatures. The party also elected three governors,five senators, and ten congressman. Their overwhelming popularity shows that the "plain people" -mostly small farmers- that they are representing are not happy. However it's the plain people that monopolies are pushing out with commercial farming this party is there way of rebelling back against this extermination. Although their party didn't last for long, it ended when presidential candidate of 1896 McKinley failed to when the presidency, the party stood as a symbol of what the people could.
Switching to the laborers, another huge portion of Americans effected by monopolies, we see how they response primarily through forming labor unions. Most labor unions gathers under a few common goals shorter hours, adequate wages, better working conditions, and for the unions the be recognized by their employers. One of the first major labor unions was the National Labor union formed in 1866 and dissolves by 1874. The union attracted 600,000 members including skilled and unskilled workers, as well as farmers. It paved the way for future unions to come such as the Knights or Labor formed 1869. Their membership grew rapidly because of the open-membership policy; they welcomed unskilled and semiskilled workers, women, immigrants and African Americans. The Knights believed that they could eliminate conflict between labor and managements. Their goal was to create a cooperative society in which laborers owned the industries that they worked for. Their membership peaked in 1886 however the union slow broke apart because of failed strikes and violence and most member abandoned the movement a year later. The AFL formed in 1886 and lead by Samuel Gompers comprised the longest lasting and most influential labor federation in the United States. The AFL dealt specific with skilled workers in the craft unions and fought for the same common goals as the rest of the previous failed unions. In Samuel Gompers address ,What Does Labor Want?, before the International Labor Congress he explained what he hopes to achieve for laborer as well as how achieving them would help out the community. (Doc. G) He fights for the Bread and Butter goals, shorter work day, higher wages, and better working conditions. He also goes further to explain that shorter hours would lead to less people in prison and almshouse population. He feels the monopolies had a responsibility to the community by reducing unemployment. Although the laborers and the labor unions weren't able to have major success quickly over time they were able to make great strides towards their main goals. They were able to uses strikes and negotiations combat the monopolies that threaten to dominate them.
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