The Gilded Age saw fierce debates over political patronage and economic policies. Reformers pushed to replace the corrupt spoils system with merit-based civil service, while political machines clung to patronage power. These reforms aimed to create a more efficient, less corrupt government.

Economic policies like tariffs and monetary standards divided the nation. High tariffs protected industries but raised consumer prices, while the gold standard debate pitted creditors against debtors. These issues highlighted regional and class divides shaping American politics and society.

Political Patronage and Reform

Spoils system vs civil service reform

• Spoils system
  • Practiced by both Democrats and Republicans involved giving government jobs as rewards for political support
  • Led to a corrupt and inefficient bureaucracy with unqualified individuals in positions
• Civil service reform
  • Aimed to create a merit-based system for government jobs based on qualifications and competitive exams
  • Pendleton Civil Service Reform Act (1883) established the Civil Service Commission to oversee competitive exams for government positions, initially covering 10% of federal jobs and gradually expanding
  • Reduced corruption and improved government efficiency by appointing qualified individuals
  • Weakened the power of political machines and patronage

Political patronage in Gilded Age

• Political machines (Tammany Hall in New York City) relied on patronage to maintain power by rewarding loyal supporters with jobs and favors
• Patronage led to corruption and inefficiency in government with unqualified individuals appointed to positions and kickbacks and bribes common
• Reformers (Mugwumps, reform-minded Republicans) sought to end patronage and establish a merit-based system
• Progressives continued to push for reform in the early 20th century to further reduce corruption and improve government efficiency

Economic Policies and Debates

Impact of tariff policies

• High tariffs protected domestic industries (manufacturers in the Northeast) from foreign competition but raised prices for consumers
• Tariff revenue was a major source of government income
• Farmers and agricultural regions favored lower tariffs to expand foreign markets for their products and reduce the cost of goods they purchased
• Tariff debates reflected regional and economic divisions
  • McKinley Tariff (1890) raised rates to an average of 48%
  • Wilson-Gorman Tariff (1894) lowered rates slightly
• Protectionism was a key argument for maintaining high tariffs to shield American industries from foreign competition

Gold standard vs free silver debate

• Gold standard
  • Backed currency with gold reserves and was favored by bankers, businessmen, and creditors who believed it provided stability and maintained the value of the dollar
• Free silver
  • Advocated for the free coinage of silver at a ratio of 16:1 with gold and was supported by farmers, debtors, and Western mining interests who believed it would increase the money supply and ease the burden of debt
• Populist Party and William Jennings Bryan supported free silver, with Bryan's famous "Cross of Gold" speech at the 1896 Democratic Convention
• Election of 1896 saw Republican William McKinley's victory solidify the gold standard, which remained until the 1930s, marking a turning point in the debate
• Bimetallism was proposed as a compromise solution to use both gold and silver as monetary standards

Economic Philosophy and Monetary Policy

• Laissez-faire economics dominated government approach to business regulation, favoring minimal intervention in the economy
• Deflation was a major concern for farmers and debtors, as falling prices made it harder to repay loans and reduced the value of agricultural products
• The debate over monetary policy centered on how to address economic instability and promote growth while balancing the interests of different economic groups