5-3: Industry and Unions

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1 5-3: Industry and Unions

2 Overview Rise of industrial capitalism Technological advances Large-scale production methods Opening of new markets Pro-growth government policies Business consolidation Variety of perspectives on the economy and labor Periods of extreme growth, periods of financial panics

3 Technology and Innovations Technological Change Industrial Civil War economy laid foundation for emergence of technology in North Labor force secured through growing population Immigrants Rural migrants

4 Technology and Innovations The Business of Railroads Federal land grants Transcontinental railroads Innovations Railroads Vanderbilt Iron Coal Electricity Edison Steel Carnegie Oil Rockefeller Banking J.P. Morgan Telephone Alexander Graham Bell Marketing Consumer Goods

5 Industrial Empires Competition and Consolidation Corporations Investors share risk and profits Limited liability Same legal standing as individuals Trusts, Holding Companies, and Monopolies Vertical integration (Carnegie) Horizontal integration (Rockefeller) Consequences of Consolidation Large factories Unskilled labor Taylorism (scientific management) 10% owned 90% of wealth White collar jobs discretionary income Lower prices expanding middle class Labor discontent

6 Laissez-Faire Capitalism Government Policies Toward Business Actions Subsidies High tariffs Stable currency Little regulation Rationale Motivation for business is self-interest (Adam Smith) Capitalism best when government is small

7 Laissez-Faire Conservatism Myth of the Self-Made Man Rags-to-riches stories Horatio Alger Social Darwinism Herbert Spencer Survival of the fittest in society Urban problems are part of natural selection Justified extreme salaries Concentration of wealth in the hands of the fit was a benefit to all

8 Laissez-Faire Conservatism Gospel of Wealth Rich have a duty to serve society Philanthropy Carnegie $350,000,000 to charities Social Critics and Dissenters Veblen Theory of the Leisure Class Predatory wealth Only 20% of women worked

9 Effects of Industrialization on Workers Expansion of labor force Machines replaced skilled workers Taylorism Separate class of workplace managers Corporations Unions weak because of surplus of cheap labor

10 Union Movement Purpose Improve factory conditions Turnover problem with unskilled labor Role of Panic of 1873 Methods Collective bargaining Strikes

11 Union Movement Unions Knights of Labor Open-membership policy Looked to create cooperative society Workers would own the industries Rejected socialism and anarchism American Federation of Labor Skilled workers Pragmatic not influenced by Marxism Bread and butter issues

12 Union Movement Unions International Workers of the World Strove to unite all laborers One big union Embraced class conflict and violence Ties to anarchism

13 The working class and the employing class have nothing in common. There can be no peace so long as hunger and want are found among millions of the working people and the few, who make up the employing class, have all the good things of life. Between these two classes a struggle must go on until the workers of the world organize as a class, take possession of the means of production, abolish the wage system, and live in harmony with the Earth. We find that the centering of the management of industries into fewer and fewer hands makes the trade unions unable to cope with the ever growing power of the employing class. Instead of the conservative motto, "A fair day's wage for a fair day's work," we must inscribe on our banner the revolutionary watchword, "Abolition of the wage system." It is the historic mission of the working class to do away with capitalism. The army of production must be organized, not only for everyday struggle with capitalists, but also to carry on production when capitalism shall have been overthrown. By organizing industrially we are forming the structure of the new society within the shell of the old.

14 Union Movement Strikes Great Railroad Strike (1877) Cause wage cuts Resolution federal troops Haymarket Square Bombing (1886) Cause support for strike Resolution persecution of anarchists and Knights of Labor Homestead Strike (1892) Cause wage cuts Resolution Pinkerton agents

15 Union Movement Strikes Coxey s Army (1894) Cause demand for government aid Resolution federal troops Pullman Strike (1894) Cause wage cuts Resolution federal troops, conviction of Eugene Debs Themes Government supports owners Public opinion deplored labor tactics

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