“Get
rich, dishonestly if we can, honestly if we must,” The Gilded Age
by Mark Twain
Many students of history were surprised when Donald Trump
promised at his second inauguration to usher America into a new “Golden Age.”
As he spoke, he was surrounded by a cadre of tech billionaires. Their combined
net worth was one trillion dollars. Trump’s spectacle looked more like the
beginning of a new “Gilded Age,” not a golden one.
What exactly was the original gilded age in American
History, the period from the 1870s to the late 1890s? What can we learn from
those years that may be useful in understanding Trump’s second term? What is
different in America’s mood today, compared to the time following the Civil War
through the beginning of industrialization?
According to Wikipedia,
the term Gilded Age was first coined by writers who borrowed
the concept from one of Mark Twain’s lesser-known novels, The Gilded
Age: A Tale of Today (1873). The
book satirized a federally promised “golden age” after the Civil War, identical
to the promise made in Trump’s speech. The pejorative term gilded age described
what became an era of serious social problems (disorder, corruption,
inequality). It was masked by a “gold gilding of economic expansion that
only benefited the wealthy few.”
The original
gilded age is associated with the rise of powerful industrialists like Andrew
Carnegie and John D. Rockefeller. It marked the transition from an agrarian
economy to an industrial one. At that time, the federal government was confined
and there was no system to regulate abuses.
Following the Civil War, America
experienced industrial expansion in railroads, steel production, and oil
industries. A small elite accumulated vast wealth.
The labor class faced poor working conditions and low wages. Large
numbers of immigrants arrived in the US, contributed to the workforce but also
faced the challenges of nativist rejection. Powerful labor
unions began to form in response to stifling working conditions and child labor.
Analyzing the political and economic
history of the original gilded age gives us some examples to compare with
Trump’s recent initiatives. Following the Civil War, a Republican Congress
enacted the Pacific Railroad Act, which granted railroad companies 6,400 acres
of federal land. Today, Trump’s “gifts” to private companies include drilling
rights on federal lands and favorable regulations for businesses including cryptocurrency.
In 1872, a scandal implicated 30 sitting
members of Congress, as well as the sitting Vice President, Schuyler Colfax in
an elaborate double-billing and securities fraud scheme. Three years later, the
Whiskey Ring Affair exposed dozens of corrupt federal revenue collectors. City
mayors, like the NYC political machine Tammany Hall, made an art form of
corruption during the gilded age.
In the present gilded age, Trump has
terminated Inspector Generals, regulatory agencies, and reorganized the Justice
Department with loyal supporters. As a result, many abuses and illegal acts in
government and business will easily escape detection.
During the first gilded age, the close
relationship between the executive branch, Congress, and the new industrialists
resulted in a massive concentration of wealth into the hands of a small number
of companies. Today, the corporate “magnificent seven” (Alphabet, Amazon, Apple, Meta
Platforms, Microsoft, Nvidia, and Tesla) is a group of major tech companies that are in a similar position.
Elon Musk, the primary owner of Tesla, X,
and other tech companies has been tasked by Trump with shrinking the government
and removing regulatory impediments to billionaire growth. Altogether, Trump has appointed an
unprecedented 13 billionaires into his administration.
What can be done to slow the advance of
the Trump inspired second gilded age? To study the problem, the analysis and
conclusions from a book released in 2017 was worth a second look. The Age of
Acquiesce by Steve Fraser tackles the issue of “American resistance to
wealth and power” from the founding of our country until recently.
Fraser finds that following the Civil
War, many Americans were still part of the agrarian economy and distrusted
modern capitalism. The new industrial movement threatened their views on work,
family, community, and religion.
Americans were angry, and they often
fought hard against the abuses of the gilded age. As late as 1912, nearly a
million Americans, or six percent of the electorate, cast ballots for a
socialist president, Eugene Debs. Mass labor movements were common and would
not accept a world where a few wealthy men controlled the country.
Fraser documents how, over time, the
political will to challenge great wealth disappeared. In the grand bargain of
1950, unions in the steel and auto industries traded in their control over
shop-floor rules for job security and steady employment. An ethos of individual
accumulation replaced what was left of labor solidarity. Fraser concludes that
in today’s world, there is waning American dissent to a society governed by the
wealthy. We have somehow lost the
ability to imagine an alternative.
What is needed for the present gilded age
is a new coalition of resistance and solidarity. Ironically, both Steve Bannon,
a populist leader in the Republican MAGA movement and Bernie Sanders, a
socialist Senator from Vermont take similar positions. They both vehemently
attack the influence of the new gilded age billionaires.
Is it possible that a bottom-up coalition
will emerge from these sworn political enemies and others to challenge the entrenched
“one percent?” If it does, the social energy and creativity of ordinary people could
again prevail.