America might be in a second Gilded Age

With the United States entering an era of increasing wealth inequality — interspersed with calls for social change and societal upheaval — some experts are likening the 2020s to a second Gilded Age. And with the gap between the rich and the poor rising, this doesn't appear to be an off-base assessment.

Not every aspect of the first Gilded Age, which ran from the 1870s to the 1890s, can be seen in modern America. But certain elements of the late 19th century have carried over to the present day, and some economists have been raising alarm bells about what this could mean going forward.

What characterized the first Gilded Age?

The Gilded Age was a period when the United States "became more prosperous and saw unprecedented growth in industry and technology," said History. But it was also a time "where greedy, corrupt industrialists, bankers and politicians enjoyed extraordinary wealth and opulence at the expense of the working class." Most of the power during the Gilded Age was held by America's wealthy, not politicians.

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When most people think of the Gilded Age, they think of extravagantly wealthy tycoons like Andrew Carnegie and J.P. Morgan. What also comes to mind are the "homes of the Gilded Age elite," which were "nothing short of spectacular," said History. Many of "America's most famous mansions were built during the Gilded Age," including the Vanderbilt family's Biltmore Estate, which is still the largest private home in the U.S.

Why do experts say America is in another Gilded Age?

This is largely discussed due to the increase in income inequality. Labor movements are "at the forefront, increasingly challenging income inequality and drawing parallels to earlier struggles, keeping the fight for workers' rights alive," said ABC News. As in the Gilded Age, an era of "extreme luxury is returning, which is evident in the increasing number of mega-mansions" and superyachts.

Over the last four decades, CEOs have "made over 1,000 times more than a typical worker," said Janelle Jones, the vice president for policy and advocacy at the Washington Center for Equitable Growth, to ABC. For a "typical worker, the pay has only increased 24%. Last year, CEOs made more than 300 times the typical worker."

Both the "late 19th and the early 21st centuries saw technological change, increased globalization, economic growth, concentration of wealth, and rising inequality," said the Council on Foreign Relations (CFR). Both eras also experienced "increased immigration, changing demography, and a decline in standing for less-educated rural whites."

As wealth inequality skyrocketed during the first Gilded Age, the "rising country developed new tools to understand and respond appropriately," said the CFR. But unlike the social activism seen during that time, today a "declining country, facing deindustrialization and the emergence of the gig economy, is retreating into ignorance, culture wars, and performative outrage." This means there likely won't be a "quick resolution of the country's major problems."

In the 19th century, most tycoons made their wealth from "railroads, steel and oil. Today, it's technology, finance and pharmaceuticals," said Jim Martin at The Denver Post. The wealth gap "raises questions about the efficacy of democratic institutions and the ability of the government to regulate corporate behavior in the public interest." While the first Gilded Age "faced challenges regarding monopolies and regulations," modern Americans must "grapple with similar issues amid calls for increased corporate responsibility."