Summary
Highlights
The Gilded Age, named after Mark Twain's book, highlights the era's hidden political corruption despite outward displays of wealth. Twain himself was a critic of Congress, equating it with idiocy and a distinct American 'criminal class'.
Political machines, like New York City's Tammany Hall, were organizations that aimed to win elections and exercise power. George Plunkitt of Tammany Hall championed 'honest graft,' where politicians used insider information for personal profit, arguing it was a legitimate return on investment and foresight.
William 'Boss' Tweed, the most infamous machine politician, ran New York in the late 1860s and early 1870s. The construction of the New York County Courthouse, initially estimated at $250,000, ballooned to $13 million due to inflated costs, kickbacks, and fraudulent billing for items like furniture and cleaning supplies. Tammany Hall received twice the amount contractors did in kickbacks.
While inherently corrupt, political machines provided essential services to immigrants and the poor, offering housing, clothes, and jobs in exchange for votes. When these methods weren't enough, machines resorted to fraud, such as multiple voting by the same individual, and even violence to secure electoral wins.
Corruption extended to the national level during President Ulysses Grant's administration. The Credit Mobilier scandal involved railroad construction company overcharging the public and bribing Republican Congressmen. The Whiskey Ring involved distillers in St. Louis colluding with Grant administration official John McDonald to evade excise taxes, further damaging the reputation of government.
Following Grant, a series of one-term presidents reflected public distrust. Republicans favored high tariffs and low spending, while Democrats opposed tariffs, both generally pro-business. Despite widespread corruption, some reforms passed: the Civil Service Act of 1883 established a merit system for federal employees, and the Sherman Anti-Trust Act of 1890 aimed to curb monopolies (though often used against labor unions).
While national government struggled, state governments expanded public health and welfare, with cities investing in infrastructure. In the West, farmers organized through the Grange Movement to pressure states for fair railroad rates and warehouse charges due to monopolistic practices.
The Grange evolved into the Farmer's Alliance, advocating for economic cooperation and the subtreasury plan: government warehouses for grain and low-rate loans using stored grain as collateral. These farmers eventually formed the People's Party, or Populists, with a reform-minded platform in 1892 that included the subtreasury plan, government ownership of railroads, graduated income tax, government control of currency, and recognition of labor unions.
While some western states granted women's suffrage due to Populist influence, the party struggled to gain broader support. Industrial workers feared inflation from the Populist call for free coinage of silver, and racial divisions hindered unity in the South. Despite carrying five western states in 1892, the Populist Party ultimately declined after their candidate, William Jennings Bryan, lost the 1896 presidential election to William McKinley, who was heavily funded by business interests.
Even though the Populist Party faded, many of their ideas, particularly direct election of senators and a progressive income tax, became mainstream in subsequent years, leading into the Progressive Era.