Mr. Gillard
AP US History
5 January 2007
Essay 16: Gilded Age
Throughout history, certain periods of time have been given certain names based on the
happenings that occurred. Many have called the period of 1865 to 1901 the “Gilded Age”, be
cause it was “shiny and pretty” on the outside but it was “rough and ugly” underneath. The term
“Gilded Age” was actually coined by Mark Twain who satired the Gilded Age with a Golden
Age. Politically, economically and socially the Gilded Age was truly a “Gilded Age”. Not
everything added to the “Gilded” effect of the time period. The “robber barons”, two major de
pressions and the labor unions (though not originally a bad thing) did add to the age.
The Gilded Age saw the rise of Andrew Carnegie, John D. Rockefeller and J.P. Morgan.
These three “robber barons” as they were known as, were the three most powerful men of the
time, but they didn’t necessarily acquire their wealth and power peacefully and by good means.
Andrew Carnegie acquired his wealth through steel. He founded the Carnegie Steel Company
and created an empire of steel. Though his rise to power may not have been truly legitimate,
when he retired he gave away 350,695,653 dollars to charity. John D. Rockefeller was another ty
coon, but he invested in oil instead of steel. His goal was to make as much money as possible,
which might seem conniving, but he then wanted to spend it to improve mankind and in order to
achieve his goal, he invested in oil. Rockefeller was the first to invent the “trust”. Trusts are basic
ally a relationship in which a person holds a legal title to certain property but is bound by a cer
tain duty to exercise that legal control for the benefit a person or persons. J.P. Morgan was the
third major tycoon of the Gilded Age, who was a very successful banker. J.P. Morgan merged
Carnegie’s Steel Company into the US Steel Corps. J.P. Morgan acquired more money than both
Rockefeller and Carnegie combined, making him the richest man in the world at the time. These
three men attained their wealth through what seemed like legitimate means, but all three were
ruthless in their business. Though there are still ruthless businessmen today, back in the Gilded
Age, these three were the most well known and powerful. The fact that they did help the nation
economically, even though there may not have been completely legitimate, created a gilded ef
fect; good intentions but they themselves may not have necessarily be good.
Perhaps the worst part of the Gilded Age, even with the invention of railroads, was the
Panic of 1873 and the Panic of 1893, two major depressions. The Panic of 1873 began after the
Civil War, during President Grant’s administration. Grant’s policy of contracting the money sup
ply was a key component to the start of the Panic. It made money scarcer while business was ex
panding. The Panic of 1873 also became known as the Long Depression. In 1877, wage cuts and
unemployment cause workers to strike, but the tension lifted in 1879. This panic created a gilded
effect because, to the outside world, the US was a prospering nation, even though it had an op
posite effect of that of the completion of the TransContinental Railroad.
The Panic of 1893 was another major low point of the Gilded Age, which began when too
many people attempted to redeem their silver for gold. Businesses could not afford to slow down
production during the Panic, so they continued to keep their prices high, but the people didn’t
have access to the scarce money. Not only were businesses charging high prices, but also the
Philadelphia and Reading Railroad went bankrupt, causing less modes of transportation for work
ers and farmers. In total, over 15,000 companies went bankrupt during the Panic and the unem
ployment was the highest in history.
Labor Unions were also created during the Gilded Age, which added to the idea of the
Gilded Age being truly “gilded”. The American Federation of Labor was one of the first labor
unions created in the United States. The AF of L wanted “unionism” and opposed socialism. The
Knights of Labor, another labor union, was created in 1869 and enlisted in their ranks not only all
laborers but also everyone who could be truly classified as a producer.
Labor unions, the two major depressions and the three “robber barons” were three of the
foremost reasons the Gilded Age got its name. The “robber barons” invested in things that would
ultimately lead to a “Golden Industrial Age” but they didn’t achieve it totally legitimately, and the
creation of the labor unions sided with the workers, but at times, grew violent in their methods.
They had good intentions but didn’t always carry out their plans correctly to keep things peace
ful. People were injured, killed, and bankrupted and with the Panics of 1873 and 1893, the United
States economy suffered greatly. These three things contributed to the Gilded Age, causing it to
deserve its name in every aspect.