Monopoly Versus Democracy

Monopoly Versus Democracy

How to End a Gilded Age

The so-called Gilded Age in the United States began with the Compromise of 1877, which settled the disputed presidential election of 1876 by awarding the White House to the Republican candidate, Rutherford B. Hayes, in exchange for the withdrawal of federal troops from three Southern states. In the short term, the compromise effectively ended Reconstruction. In the longer term, it empowered white terrorists in the South and led to a major realignment in U.S. politics that weakened the federal government’s ability to govern the “Money Power,” the term used by critics at the time to describe the forces that were steadily taking over markets and political systems.

By 1900, one percent of the U.S. population owned more than half of the country’s land; nearly 50 percent of the population owned just one percent of it. Multimillionaires, who made up 0.33 percent of the population, owned 17 percent of the country’s wealth; 40 percent of Americans had no wealth at all. Black men had been violently and systematically deprived of the hard-won right to vote in the South, where authorities had thrown up every possible barrier—literacy tests, poll taxes, gerrymandering, grandfather clauses—to prevent the restoration of Black political rights and the growth of Black economic power. After a quarter century, it had become impossible to see these outcomes as aberrations: monopolization and repression had come to define the American system.