The Gilded Age and the changing face of America

The Civil War in which the Northern States came out victorious is crucial in understanding the shift in America. Northern States were more industrial and urban oriented were as the south was more rural and agrarian. The victory of the North and as a result the major shift of power from South to North in effect decided the future path of America to economic development based on industrial capitalism.

A comic showing John D. Rockefeller's excessive
influence and power in Washington.

During the second half of the 19th century especially the period after the civil period of 18650 to 1900 the American economy witnessed dramatic change. The driving force behind this change was the advancement of transportation in the US, specifically the rise of the railroad which helped transform the American economy from an agrarian, regional market economy to an industrial, national market economy. By the 1900 America had over 193 thousand miles of railroad track which was more than the railroad of Europe and Russia combined. During this period America witnessed the emergence of ‘Big Business’ namely large corporations. In fact the railroad was America’s first big business.

In this new economic environment the government no longer took center stage to the economy, rather it was motivated and highly smart businessman like John D. Rockefeller, Andrew Carnegie and J. P. Morgan who created the gigantic Oil, Steel and Banking business of America. The enormous wealth they accumulated brought them great power which helped them influence decision making policy in Washington. This power was so great that several Senators were on the official pay role of Standard Oil which oddly enough was not illegal at the time. Although there was some pressure on these tycoons to prevent them from monopolizing the American industry in effect the tycoons were in large successful in having their way and expanding their businesses.

This period also known as the ‘Gilded Age’ from Mark Twain’s bestselling novel in 1873 with the same name also changed the culture and mentality of Americans in an irreversible way. The life of agricultural work in small villages was long gone for many Americans. Due to the rising economy, urbanism and industrialism which in turn lead to work positions at factories and also the rise of the Corporation which lead to many ‘White Collar’ jobs brought about a new class of American people known as the ‘Middle Class’.


Carnegie Steel in 1910
Due to the advancement in technology and machinery many goods that were affordable only by the elite just a decade ago were now available to the middle class which had also seen a rise in its income, giving them more money to spend. The mass consumer society we see today started during the Gilded Age. The mass spending on goods mainly by the middle class during this period boasted the economy even further. If this culture of spending did not shape at this period then America’s economy would definitely be much worse off. Mass consumerism during the Gilded Age shaped the economy in a way that even though production levels were all time high, most of the goods manufactured in the US were consumed by the American population. This remains true to this day and has helped America become the main player in global economy.

The social change which took place during the Gilded Age should also be noted. During this time many people especially young people moved from rural America to the cities. The cities became much larger and with the advancement of technology the new city lifestyle became a source of wonder and of awe for many people. The enormous number visitors to awe inspiring fairs like the 1876 ‘Centennial Exposition’ of Philadelphia and the 1893 ‘World’s Columbian Exposition’ of Chicago bears witness to this fact. Manu people during this period were obsessed with get-rich-quick schemes. Interestingly enough Mark Twain who called the Gilded Age an “era of incredible rottenness” himself fell prey to these schemes and faced bankruptcy.

In conclusion it should be noted that during this period the American economy flourished and gradually took the place of Britain as the leading nation in industrial output. According to Morris the US accounted for 7 percent of world industrial output and Great Britain accounted for 20 percent; by 1913 the US had a share of 32 percent while Great Britain’s had dropped to 14 percent. America’s rising economy which gave it an upper hand among other nations at the beginning of the twentieth century is a key point in understanding the rise of America as a major power during this time and eventually as a super power by the end of the Second World War.