16. Capital and Labor | THE AMERICAN YAWP - 2 views
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The Great Railroad Strike of 1877 heralded a new era of labor conflict
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Nearly 100 Americans died in “The Great Upheaval.” Workers destroyed nearly $40 million worth of property.
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It convinced laborers of the need for institutionalized unions, persuaded businesses of the need for even greater political influence and government aid, and foretold a half century of labor conflict in the United States
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Long hours, dangerous working conditions, and the difficulty of supporting a family on meager and unpredictable wages compelled armies of labor to organize and battle against the power of capital.
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Plummeting transportation and communication costs opened new national media, which advertising agencies used to nationalize various products.
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Taylorism increased the scale and scope of manufacturing and allowed for the flowering of mass production.
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New industrial companies therefore hungered for markets to keep their high-volume production facilities operating
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A new class of managers—comprising what one prominent economic historian called the “visible hand”—operated between the worlds of workers and owners
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After the Civil War, however, the corporation, using new state incorporation laws passed during the Market Revolution of the early nineteenth century, became a legal mechanism for nearly any enterprise to marshal vast amounts of capital while limiting the liability of shareholders. By washing their hands of legal and financial obligations while still retaining the right to profit massively, investors flooded corporations with the capital needed to industrialize.
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But it also created millions of low-paid, unskilled, unreliable jobs with long hours and dangerous working conditions
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One of Darwin’s greatest popularizers, the British sociologist and biologist Herbert Spencer, applied Darwin’s theories to society and popularized the phrase survival of the fittest.
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The fittest, Spencer said, would demonstrate their superiority through economic success, while state welfare and private charity would lead to social degeneration—it would encourage the survival of the weak.10
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H. L. Mencken wrote in 1907. “All growth must occur at the top. The strong must grow stronger, and that they may do so, they must waste no strength in the vain task of trying to uplift the weak.”11
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By the time Mencken wrote those words, the ideas of social Darwinism had spread among wealthy Americans and their defenders
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American workers toiled in difficult jobs for long hours and little pay. Mechanization and mass production threw skilled laborers into unskilled positions
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The typical industrial laborer could expect to be unemployed one month out of the year. They labored sixty hours a week and could still expect their annual income to fall below the poverty line.
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The deaths of the Chicago policemen sparked outrage across the nation, and the sensationalization of the Haymarket Riot helped many Americans to associate unionism with radicalism
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The American Federation of Labor (AFL) emerged as a conservative alternative to the vision of the Knights of Labor. An alliance of craft unions (unions composed of skilled workers), the AFL rejected the Knights’ expansive vision of a “producerist” economy and advocated “pure and simple trade unionism,” a program that aimed for practical gains (higher wages, fewer hours, and safer conditions) through a conservative approach that tried to avoid strikes.
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1894, workers in George Pullman’s Pullman car factories struck when he cut wages by a quarter but kept rents and utilities in his company town constant. The American Railway Union (ARU), led by Eugene Debs, launched a sympathy strike: the ARU would refuse to handle any Pullman cars on any rail line anywhere in the country.
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workers were not the only ones struggling to stay afloat in industrial America. American farmers also lashed out against the inequalities of the Gilded Age and denounced political corruption for enabling economic theft.