We know how much I like history and what it can teach us about our future…..so without further ado….

Before we jump into today’s economics we need to step back and take a look at the first Gilded Age….

The Gilded Age was an era of rapid economic growth and industrialization that lasted from the late 1870s until the early 1900s. It was characterized by extreme inequality; the wealthy, including the famous robber barons, experienced high levels of prosperity, while the working classes experienced extreme poverty and labor exploitation.

Key Takeaways

• The Gilded Age was an era of American history that lasted from the late 1870s until the early 1900s. It was characterized by extreme wealth inequality and industrialization.
• Major changes during the Gilded Age included the movement from agriculture to industry, shifts from rural to urban living, women’s entry into the labor force, and westward migration.
• Immigration increased during the Gilded Age, while Black populations migrated north and west in pursuit of economic opportunity and land ownership.
• The life-threatening working conditions and economic devastation of the working classes partly fueled the rapid industrialization and innovation of the Gilded Age.
• The rise of investigative journalism, progressive ideologies, and organized labor eventually undermined the Gilded Age’s rigid class structures and exploitation.

https://www.investopedia.com/gilded-age-7692919

Does any of that sound familiar….the inequality, the working class suffers, the ‘Robber Barons’…..any of it?

“Trump’s golden age looks an awful lot like a new Gilded Age,” wrote Politico this month, reflecting on the second inauguration of the United States’ president, prominently attended by tech billionaires. The day after that inauguration, historian Beverly Gage “couldn’t stop thinking about the Gilded Age” and its “rapid technological change as well as stark inequality, corporate graft and violent clashes between workers and bosses”.

But what was the Gilded Age – and does the comparison hold up?

The term, which spans the 1870s–1890s, came from an 1873 novel by celebrated satirist Mark Twain, The Gilded Age: A Tale of To-Day, co-written with journalist and neighbour Charles Dudley Warner. It meant a nation that glittered from its growth and the accumulation of economic power by the extremely wealthy. The title referenced Shakespeare’s King John, in which the Earl of Salisbury states, “To gild refined gold, to paint the lily […] is wasteful and ridiculous excess” (Act IV, scene 2).

Trump himself has cited this era as an aspiration. “We were at our richest from 1870 to 1913. That’s when we were a tariff country. And then they went to an income tax concept,” Trump said, days after taking office. “It’s fine. It’s OK. But it would have been very much better.”

Experts on the era, however, say he is idealising “a time rife with government and business corruption, social turmoil and inequality”, and “dramatically overestimating” the role of tariffs.

“The most astonishing thing for historians is that nobody in the Gilded Age economy – except for the very rich – wanted to live in the Gilded Age economy,” said Richard White, emeritus professor of history at Stanford University.

early 1870s was full of gilded lilies – a period of wasteful excess, shady dealing in business, and political corruption.

The year 1872 saw a massive scandal over the railroads’ influence in politics, after “a sham construction company”, Crédit Mobilier, had been chartered to build the Union Pacific Railroad “by financing it with unmarketable bonds”.

Representative Oakes Ames of Massachusetts sold the shares at bargain rates to high-ranking House colleagues to secure political clout for the company. While most sold them quickly, representative James Brooks of New York (also a government director for Union Pacific Railroad) profited from a large block of shares.

Ames and Brooks were censured by the House in 1873 for using their political position for financial gain. The Crédit Mobilier Scandal, as it was called, became nationwide news.

The Gilded Age satirised such blatant pursuit of wealth. Its story centred around the members of the fictional Hawkins family, trying to get rich by selling their essentially worthless land in Tennessee under false pretences that misrepresented its value. The novel employs pathos as well as satire. An adopted daughter, Laura Hawkins, kills her married lover. She is tried and acquitted, but before her death, she feels guilty about her past behaviour.

https://www.unsw.edu.au/newsroom/news/2010/03/Trump-presidency-compared-gilded-age

Our first Gilded Age was so bad it brought on the Progressive era…..we should be so lucky this time around.

Any thoughts?

I Read, I Write, You Know

“lego ergo scribo”