The Gilded Age Guided Notes
Gilded Age-
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“gilded” means covered with gold
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o Twain published a novel called The Gilded Age that depicted
politicians and capitalists as greedy and corrupt
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90% of the wealth in the country was owned by just 10% of the
population
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The Gilded Age was marked by the success of capitalists
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capitalist-
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business leaders began to combine funds and resources to create large
companies that dominated the market
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well known capitalists of the era were Cornelius Vanderbilt, Andrew
Carnegie, J.P. Morgan, and John D. Rockefeller
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o vertical integration-
o horizontal integration- owning all
businesses in a certain field
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Cornelius Vanderbilt•
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descendants built the lavish homes that came to characterize the Gilded
Age
Andrew Carnegie•
used vertical integration effectively to control the steel industry
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life was a true “rags to riches” story
John D. Rockefeller-
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utilized vertical integration to control all aspects of the oil industry
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was the first U.S. citizen to become a billionaire
J.P. Morgan-
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eventually bought Carnegie’s steel company
Vanderbilt
Carnegie
Rockefeller
Morgan
Due to the practices of horizontal and vertical integration, many large companies came close
to monopoly status
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monopoly–
no competition means that one person/group has total control over a specific
market—they can charge the people whatever they want
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JP Morgan gained control of 70% of the steel market when he bought out
Carnegie’s steel company, forming U.S. Steel
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Robber Barons or Captains of Industry?
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to this day, historians and others debate whether they should be labeled robber
barons or captains of industry
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robber baron- cruel and self-centered entrepreneur who took advantage
of his workers, whether they be immigrant, female, or child, to
accumulate wealth
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captain of industry-
Workers in the Gilded Age
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14 million people immigrated to the US between 1860-1900
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during the same time, about 8 million native-born Americans moved from their
countryside farms into the cities in search of jobs
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every family member worked in some way
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in the 1860’s most Americans worked 12 hour days, 6 days a week
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wages were low
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by comparison, Andrew Carnegie made $23 million in one year
employers looked to maximize workers’ time
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workplace discipline was strict—could be fired or fined for being late, talking back,
refusing to do the task, etc.
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fatigue, faulty equipment, and careless training often led to fires and accidents
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there was no disability or unemployment insurance
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The Rise of Labor Unions
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the growing gap between rich and poor created anger
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workers began forming labor unions
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labor union-
early labor unions demanded shorter a working day, higher wages, and better working
conditions
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forced new workers to sign “yellow dog” contracts (promising not to join a
union)
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some refused to recognize unions at all
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The Age of Labor Strikes
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between 1881-1900, thousands of strikes took place in American factories, mines, mills,
and rail systems
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including Carnegie’s steel factories