The two factors that caused the quick economic growth during the Gilded Age (from the decade of the 1870s until 1900) were the following:
- Industrialization, and major productivity improvements led to a large accumulation of wealth and attracted many inmigrants to the US, who entered the labor force and contributed to generate more welfare. Nevetheless, there were high inequality levels.
- The development of railroads, which enabled to expand markets where the products generated in the industries could be commercialized. The domestic demand that now could be served after the improvement of the communications was huge, and this increased the profits of many companies, that kept on producing, selling, hiring, and generating economic growth.
