The Two Gilded Ages in America

 Fraser, Steve, The Age of Acquiescence: The Life and Death of American Resistance to Organized Wealth and Power. New York: Little, Brown and Company, 2015.

Mark Twain and Charles Dudley Warner named the post-Civil War era of waste and excess “The Gilded Age: A Tale of Today (1873). The term derives from Shakespeare's King John: “To gild refined gold, to paint the lily… is wasteful and ridiculous excess.” It was Mark Twain's first best seller, but rarely read today. It's probably time for a revival.

Now we live in the second Gilded Age in America. Labor historian Steve Fraser compares the two gilded ages, the first 1865-1932 and the second 1970 to the present, in his recent The Age of Acquiescence: The Life and Death of American Resistance to Organized Wealth and Power. The interlude in between saw FDR's New Deal and the golden age of capitalism post-WWII with the growth of labor unions and a modest welfare state (Social Security, unemployment insurance, Medicare, Keynesian economics). Evidently Thomas Piketty charts the same developments in his opus Capital in the Twenty-First Century.  Both gilded ages saw growing wealth and income inequality. Steve Fraser argues the marked difference between the two periods- the first engendered intense class warfare, socialist parties, and rising living standards, whereas in our present gilded age, the working class has acquiesced to austerity and insecurity. Most young people do not expect to do as well as their parents. Fraser paints a gloomy picture.

Steve Fraser

Fraser knows how to write. He was an editor at Basic Books and other publishing houses, and guest scholar at a bunch of universities. He studied labor history at Rutgers with my LeftBook comrade Murray Sklar in the mid 1970s. He also has a colorful Philadelphia connection. As a young student  revolutionary, he was sent to Temple University to found a chapter of Progressive Labor Party in Fall 1967. He subsequently broke with, or was expelled from PLP, for joining Lyndon LaRouche's (aka Lyn Marcus) faction then called the SDS Labor Committee, later known as the National Caucus of Labor Committees, and became its local leader in Philadelphia. Fraser had his moment in the spotlight in those turbulent years when Police Commissioner Frank Rizzo raided his apartment in April 1969, and charged him and his roommate with a bomb plot. Fraser and co-defendant Richard Borgmann were ably defended by Philadelphia legal luminaries Bernard Segal and David Rudovsky. Charges were dropped in 1971, the same year Rizzo was elected Mayor of Philadelphia. Fraser then left the Labor Committee in a split in 1971, which exonerates him from the LaRouche craziness that followed. Details of this episode can be found in How it all Began: The Origins and History of the National Caucus of Labor Committees in New York and Philadelphia (1966-1971), by Hylozoic Hedgehog, the nom de guerre of a former NCLC member on the LaRouche Planet website. These years surely gave Fraser a thorough Marxist education, for better or worse.

Fraser's account of the first gilded age highlights the working class resistance to waged labor, or “wage slavery” according to the nascent socialist movement. He observes that 80% of Americans were self-employed in 1820. By 1940, the self-employed constituted only 20% of workers. The disappearance of the artisan tradition and its replacement with waged labor during the long 19th century was tumultuous. Before the Civil War Harriet Beecher Stowe saw the emancipation of the slaves and the working classes as one: “the war for the rights of the working classes of mankind as against the usurpations of privileged aristocracies.” Workers fought over wages, the length of the workday, and union representation. Between 1886 and 1893 state governments would call out the National Guard more than 100 times to deal with labor turmoil. Fraser surmises the bloody labor confrontations at Homestead, Ludlow, the Great Railroad Strike of 1877, et al threatened a second Civil War. It generated socialist politics and unions, and eventually social concessions from the bosses and the state during the Progressive Era pre-WW1 and the New Deal.

Today we live in the new gilded age, with equally extreme economic inequality. Fraser recounts the deindustrialization of US economy, the eclipse of the labor movement, growth of casual sweatshop labor, and the erosion of pensions and the social safety net since 1970. He says, “National politics over the last half century has polarized between efforts to defend and restore the New Deal order, and relentless attempts to repeal and replace it with something even older.” Whereas in the first gilded age capitalism was ascendant, now it is decaying. Capitalist assets are sold off, mortgaged, or moved to low wage countries. Marxist economist Paul Mattick Jr. sees in the years following the golden age of capitalism (1945-1970), the classic Marxian case of a declining rate of profit. The usual Keynesian nostrums for managing the economy and securing full employment have not worked. Wages and benefits have been cut steadily hollowing out the middle class. Rich conservatives have promoted laissez-faire economics, revanchist patriotism, religious fundamentalism, and nativism as the magic solution to every problem. In Tea Party patron saint Ayn Rand's immortal words, “Booty is truth.” Money rules.

Steve Fraser doesn't have any remedies to offer us. He is nostalgic about the class conscious workers in the 19th century America, the pre-WWI Socialist Party, and victories during the New Deal. Perhaps the  Fortress Walmart associates, retail and fast-food workers, adjunct university teachers, and immigrants will revolt against austerity and decline. Perhaps something unexpected will occur, like the civil rights revolution in the 50s and 60s, the LGBT and woman's movement, the CIO in the 30s, something unforeseen. Bernie Sanders unexpected success running as a socialist in the Democratic primaries could become such a movement. 

But the left also needs self-examination. Communism in the former Soviet Union and Social Democracy in Europe do not offer attractive models for socialism here. The left needs fresh creative thinking that may diverge from the master thinkers of the 19th century. We have a rich tradition, but shouldn't be captivated by it. We need to offer practical solutions for the world we live in today. For example, Finland is launching an experiment in guaranteed basic income, and eliminating much welfare state bureaucracy. This is not socialism, but merits attention. While we're waiting for the glorious non-violent social revolution, waiting for the Messiah, we could indulge in speculative thinking and experiments in democratic socialism, or libertarian communism if you like. Fraser notes the fervor of 19th century radicals produced innumerable utopian colonies and cooperatives, and a best selling utopian literature that converted many to labor's cause. Laurence Gronlund Cooperative Commonwealth, Edward Bellamy Looking Backward, and Henry George Progress and Poverty reached a mass audience in the 1890s. Socialist doctrine was not yet set in stone. There were many socialist schools of thought. We need to recover that sentiment.

Despite Steve Fraser's often gloomy history, as socialists we believe there is an alternative to capitalism. In Sidney Hillman's words in 1918, “[we] can hear the footsteps of the Deliverer… Labor will rule and the World will be free.” We will not be dismayed.