Trump dreams of The Gilded Age
Trump is the dumbest rock of dumbest rocks with his tariff fetish. He’s invoking the ghost of William McKinley.
Heather Cox Richardson this morning:
By pointing to McKinley’s presidency to justify his economic plan, Trump gives away the game. The McKinley years were those of the Gilded Age, in which industrialists amassed fortunes that they spent in spectacular displays. Cornelius and Alva Vanderbilt’s home on New York’s Fifth Avenue cost more than $44 million in today’s dollars, with stables finished in black walnut, cherry, and ash, with sterling silver metalwork, and in cities across the country, the wealthy dressed their horses and coachmen in expensive livery, threw costly dinners, built seaside mansions they called “cottages,” and wore diamonds, rubies, and emeralds. When the daughter of a former senator married, she wore a $10,000 dress and a diamond tiara, and well-wishers sent “necklaces of diamonds [and] bracelets of diamonds, sapphires, and rubies.”
Americans believed those fortunes were possible because of the tariff walls the Republicans had begun to build in 1861. Before the Civil War, Congress levied limited U.S. tariffs to fund the federal government, a system southerners liked because it kept prices low, but northerners disliked because established industries in foreign countries could deliver manufactured goods more cheaply than fledgling U.S. industries could produce them, thus hampering industrial development.
So, when the Republican Party organized in the North in the 1850s, it called for a tariff wall that would protect U.S. manufacturing. And as soon as Republicans took control of the government, they put tariffs on everything, including agricultural products, to develop American industry.
The system worked. The United States emerged from the Civil War with a booming economy.
But after the war, that same tariff wall served big business by protecting it from the competition of cheaper foreign products. That protection permitted manufacturers to collude to keep prices high. Businessmen developed first informal organizations called “pools” in which members carved up markets and set prices, and then “trusts” that eliminated competition and fixed consumer prices at artificially high levels. By the 1880s, tariffs had come to represent almost half a product’s value.
Buoyed by protection, trusts controlled most of the nation’s industries, including sugar, meat, salt, gas, copper, transportation, steel, and the jute that made up both the burlap sacks workers used to harvest cotton and the twine that tied ripe wheat sheaves. Workers, farmers, and entrepreneurs hated the trusts that controlled their lives, but Republicans in Congress worked with the trusts to keep tariffs high. So, in 1884, voters elected Democrat Grover Cleveland, who promised to lower tariffs.
Republicans panicked. They insisted that the nation’s economic system depended on tariffs and that anyone trying to lower them was trying to destroy the nation. They flooded the country with pamphlets defending high tariffs. Cleveland won the popular vote in 1888, but Republican Benjamin Harrison won the electoral votes to become president.
After the election, steel magnate Andrew Carnegie explained that the huge fortunes of the new industrialists were good for society. The wealthy were stewards of the nation’s money, he wrote in what became known as The Gospel of Wealth, gathering it together so it could be used for the common good. Indeed, Carnegie wrote, modern American industrialism was the highest form of civilization.
But low wages, dangerous conditions, and seasonal factory closings and lock-outs meant that injury, hunger, and homelessness haunted urban wage workers. Soaring shipping costs meant that farmers spent the price of two bushels of corn to get one bushel to market. Monopolies meant that entrepreneurs couldn’t survive. And high tariffs meant that the little money that did go into their pockets didn’t go far. By 1888 the U.S. Treasury ran an annual surplus of almost $120 million thanks to tariffs, seeming to prove that their point was to enable wealthy men to control the economy.
They don’t want to govern. They want to rule. Problem is, a lot of these freedom-obsessed MAGAs want to be ruled.