"Today, production is left to anarchy, and only tyranny, the twin sister of
anarchy, is organized."
- Socialist Leader Daniel De Leon, 1896
Labor Movements and Working Conditions
During the Gilded Age, working conditions were very poor. Men, women and children worked extremely long hours for very little pay. This prompted them to form labor unions and fight back against their employers. There were constant disagreements between the middle class workers and their upper class bosses. This led to strikes such as the Homestead Strike and the Pullman Strike. These were violent displays of the antimosity between the two parties. Before industrialization there was no need to create unions such as the American Federation of Labor or the National Labor Union. The urban setting of working in factories made it necessary for labor unions to be created.
The cartoon on the right illustrates the power that industries such as the oil industry had and how they had control over many things in the contry, even the government.
Laissez-Faire Economic Policy
During the Gilded Age, the United States government implemented the ideal of
laissez-faire. In laissez-faire, the government plays a minimal role in the
economy, allowing it to almost run itself. This took after the ideal of the
"invisible hand" that Adam Smith came up with. But it wasn't the right thing for
this time.With industrialization and urbanization spreading in the U.S.,
businesses could easily cheat" the system. Without interference from the
government, businesses were pursuing their own interests and making any attempt
they could to eliminate competition and make the largest profits they could.
This is what allowed robber barons to become robbers. They easily took advantage
of the lack of regulation from the government.
laissez-faire. In laissez-faire, the government plays a minimal role in the
economy, allowing it to almost run itself. This took after the ideal of the
"invisible hand" that Adam Smith came up with. But it wasn't the right thing for
this time.With industrialization and urbanization spreading in the U.S.,
businesses could easily cheat" the system. Without interference from the
government, businesses were pursuing their own interests and making any attempt
they could to eliminate competition and make the largest profits they could.
This is what allowed robber barons to become robbers. They easily took advantage
of the lack of regulation from the government.
Robber Barons
Robber Barons were businessmen who were in a way corrupt, they exploited the laissez-faire economy to take control of their industries and beat out their competition. Men such as John D. Rockefeller, Andrew Carnegie, J.P. Morgan and Cornelius Vanderbilt were considered to be robber barons. They took advantage of customers, participating in deals that were unfair and using sneaky techniques to get ahead in their industries. These men had a massive amount of power, they had control over many lives because of their positions as heads of their industries. Without urbanization, men like this would have no power, their wouldn't be so many people in such a close region who were dependent on their products if it weren't for industrialization and urbanization.
The cartoon on the left shows the power and influence that the Robber Barons had during this time period, and how the "funny little government" just allowed it to happen by defering to laissez faire.
Railroads
The construction of railroads, is what helped industrialization thrive. It was now possible for products to be sent across the country in a much shorter time span. This made it possible for meatpacking to be industrialized. It also caused some shady business deals. Corruption ran rampant in the railroad industry, with "stock watering" and other unfair techniques to get ahead of the competition. "Railroad Kings" became industrial monarchs, holding a large amount of power in their hands. Because the government was not involved, many customers and workers in other trades were getting the short end of the stick. Farmers were greatly taken advantage of in this system.