Gilded Age: An introduction
Throughout the history of the United States, an era filled with controversy brought this country to prosperity. Society experienced a drastic transformation in various aspects in several decades, including the call for equality from different oppressed groups, the distribution of wealth in the society, the shift in general social morales, production methods, etc. This era was named after the famous Mark Twain's novel —— "The Gilded Age." The nature of this era can be inferred from its name: while making dazzling achievements in the country's overall development, the so-called "exterior facet," the interior facet of the nation, is stormy and brawling.
During the Gilded Age, the USA experienced the second industrial revolution, which was led by the considerable growth in heavy industries like railroad systems, steel production, mining, manufacturing productions. Take the railroad mileage as an example, it increased from 35000 miles in 1860 to more than 200000 miles in 1900, and this figure will triple in only 20 years later. Such marvelous industrialization was backed by technological advances, which played a crucial role in enhancing the efficiency of transportation and production, helping the firms make better products and increase their profitability. In decades, workshops were replaced by factories, newly emerged source of energy —— electricity was widely applied. The USA took off her old farming clothes and wore her blue-collar uniform in the gilded age. The potential of hers was explored in the roaring of an iron beast.
Despite what had been achieved in the gilded age, there were reasons why it was not named "golden age" but gilded instead. As mentioned previously, the interior facet of this era was "stormy" and "brawling." The consequences of rapid industrialization and overall economic growth were the concentration of capital in a few capitalists' hands, the oppression against their employees by squeezing surplus value, the enlarging poverty gap, the throat-cutting competition between firms, the large scale monopolies, etc.
Regardless of the luxuriant exterior of the gilded age, it was an era of inequality. Clashes between different social groups, unfair competition, oppression against workers, and corruption were significant themes of the times.
What was underneath the gilded exterior was the rusted interior.
Laissez-Faire Philosophy and Social Darwinism
The phrase "Laissez-Faire" comes from French, meaning "allow to do ." In politics, it advocates minimum or non-governmental intervention to the society; In economics, it is a system in which transactions between private groups of people are free or almost free from any form of economic interventionism such as regulation and subsidies(Wikipedia, laissez-faire).
Laissez-faire was a common belief in the gilded age America. Proponents of such an idea suggest that too much governmental intervention will become obstacles to economic growth while a free market will be optimum for society. As a result, they oppose regulations of any type to the labor market, including minimum wages, maximum working hours, duties, working conditions, etc. Governments' role in society is to ensure security and enforce the signed contract.
Social Darwinism in the gilded age was tightly associated with laissez-faire philosophy. This idea suggests that human society works according to Darwin's "natural selection" law: the fittest would be selected through free competitions. Social Darwinism was applied to support the laissez-faire philosophy as according to social Darwinism, the poor and low-class individuals are "unfit" and should not be aided. In the theory of social Darwinism, social hierarchy is reasonable due to the natural inequalities between individuals. An individual's wealth measures how "fit" it is in society. The more wealth an individual owns, the more successful it is in the struggle of existence. Hence, attempts to reform and interfere from governments(e.g., aid for the poor / regulations that restrict free competition) would disrupt the natural process while free competition accord to the natural process and eventually prompt the population's evolution. (Britannica, social Darwinism)
Lacking labor market policies: What was the problem?
In the case of the gilded age, the issue was not about a problematic labor market policy but the lack of labor market policies to protect workers' rights. Influenced by Laissez-faire philosophy and Social Darwinism, governments barely established any regulations concerning the working time length, working conditions, minimum wage, and redemption for injury on the job.
Without legal protection, workers in the gilded age were squeezed by capitalists in order to make more profit. Working hours were extended; for instance, employees in steel mills were demanded a seven-day workweek, while many workers in other industries such as sweatshops had to work more than 12 hours per day and six days per week. What's worse was that neither vacation nor sick leave was entitled. Besides this, a high injury and death rate was attributed to poor hygiene conditions, poor ventilation, and dangerous working environment. In 1882, an average of 675 workers lost their lives in work-related accidents per week. However, due to the lack of relevant regulation that protects workers' rights, there was no reimbursement for those accidents that happened at work. Moreover, salaries offered were so low that most families could only survive if every member had a job. In 1899, the average annual wage for men was $498, while for women, the figure was $267. Suggesting that the "reward" for probably a 14-hour day was only around $1.36 for men and 73 cents for women(Labor Unions, Working conditions during the Gilded Age). The lacking of labor market regulations also leads to child labor. In 1870, one in every eight children was employed. This figure increased to 20% by 1900. Besides, 48% of all victims of child labor were aged 5-11 years(Compassion, child labor facts).
In conclusion, the lacking of labor market policies caused by the laissez-faire philosophy and social Darwinism theory was disastrous for the lower-class workers. While the dignitaries did not care at all about the "unfit" ones, workers as individuals lacked the power to oppose such oppression from their employers. Low-skilled workers had to endure the unfair treatment as they could be replaced easily (repetitive and straightforward jobs) and lost their source of income. It is crystal clear how the lack of labor market policies that protect workers' rights is a necessity in a society where people from all social classes are respected.
The call for right —— Labor Unions
There is an old saying, "Unity is strength." Without legal regulations that ensure labor rights, workers in the gilded age sought protection that could come in numbers by forming labor unions. There were three major labor unions: The National Labor Union(1866-1873), The Knights of Labor(1869-1949), and The American Federation of Labor(1886-now). While the AFL sustained and remained its influence until today, the NFL and K of L disappeared due to various reasons.
The National Labor Union was the earliest labor union among the three. It advocates improvements in working conditions through legislative reforms. To obtain strength that comes in powers, the NLU accepted both skilled and unskilled workers, farmers, and reformers(to gain political influence). Under the belief that employers and employees share that identical interest, the NLU was against strikes and dedicated to meet its goals through political action. In 1872, NLU turned into the National Labor Reform Party and organized a presidential election campaign. However, shortly after the withdrawal of the party's candidate David Davis from the election and the unsatisfying performance in the polls, the party collapsed and disappeared. (Britannica, national labor union)
The Knights of Labor emerged slightly after the NLU. It was inclusive and welcomed all workers regardless of race and gender as it believed that broad-based unions would be capable of acquiring more rights for workers. K of L experienced rapid growth in members, and by 1886, 20% of all workers were affiliated. Unfortunately, its autocratic leadership divides between skilled and unskilled workers, and unsuccessful strike actions lead to its failure(Rodney: The Gilded Age 1870 to 1900). Moreover, exterior competition with the AFL and the blame for being associated with the 1886 Haymarket Square Riot accelerated the organization's demise.
The American Federation of Labor was founded by an alliance of craft unions disaffected with the Knights of Labor. The AFL was dominated by these craft unions for the first 50 years of its history and turned into an industrial union in the 1940s to compete with the CIO(Congress of Industrial Organizations). Eventually, the two organizations merged and created the AFL-CIO organization, the most influencing labor federation in the United States until today.
Conclusion
From today's point of view, the lack of labor market policies caused by the laissez-faire philosophy was problematic. The free market without enough restrictions was not beneficial for the entire society. While promoting the country's industrialization, it caused significant poverty and inequality in society. The laissez-faire philosophy assumed that social benefit would follow if each individual served their own interest. However, in reality, not every individual can pursue their own interest, and individuals aren't equally empowered in competitions. Without regulations that protect the rights of the poor and weak, tragedies among workers in the Gilded Age will happen.