The condition of the American economy, then and now:
1. Globalization: The late 19th and early 20th centuries were a golden age for globalization. There were no ideological barriers to international trade (i.e., no Communist countries); the British Navy controlled the oceans; steamships, railroads, and canals reduced travel times; the telegraph improved communications; and refrigeration made it possible to transport food overseas. In addition, immigration was at a very high level, which helped keep wages down. Today, the biggest issue is offshoring, which was still impracticable back in the 1890’s. Wages for unskilled workers are stagnant due to competition from foreign workers and machines (see below), while profits have soared due to the availability of new foreign markets and reduced costs.
2. Technological change: The principal technological changes were in the fields of transportation and communications, and had a limited impact on existing jobs; however, improvements to agricultural machines made it possible for American farmers to reduce the number of manual laborers, thereby providing an additional pool of workers for industry. Today, the concern is whether machines using some form of artificial intelligence will provide new employment opportunities, or force people with limited skills out of the labor market altogether. The threat of being replaced by a machine has reduced wage demands from unskilled workers in both manufacturing and services businesses.
3. Welfare state: There wasn’t one; the down-and-out had to rely on their families and private charities, mostly affiliated with churches. Today, the welfare state is under threat for being too expensive.
4. Public health and safety regulations: To the extent they existed at all, it was on a state level. Today, reducing their costs is one of the principal objectives of the GOP.
5. Taxes: The income tax was unconstitutional until 1913. Today, of course, reducing taxes on the wealthy to the maximum extent possible is another longstanding GOP objective.
There is no mystery was to why some members of the GOP think the country started to go to hell in a handbasket when Woodrow Wilson was elected. An America dominated by the Republican Party would look even more like the America of the Gilded Age than it does today, which is saying something.