During the late 19th century to the 1930s people in the United States realized there needed to be change. The understanding of economic freedom in the 19th century was a lot different than the understanding during the 1930s. Leading up to the1930s, there had been a multitude of advancements, in government roles, health and living standards, technology, and economic productivity. The reason why people in the united states changed their understanding of economic freedom is due to two main reasons. One being health and living standards, and two being the role of the government. At first the government did not regulate big corporations, letting them do whatever they wish. The way corporations were treating people, could almost be considered economic slavery. …show more content…
But now, economic security, not the civil and political rights of former slaves and their descendants, dominated discussion of freedom. After years of poor wages, long work days, and horrible working conditions there was a popular demand for economic change. “In the quest for economic freedom, the most striking development of the 1930s was the mobilization of millions of workers in the congress of industrial organizations (CIO).” The CIO basically forced contracts with the nation’s most powerful corporations, finally winning decade long battles for unionization in basic industries. With unions, it would mean establishing a contractual relationship with your boss, that covers all the workers in that shop with respect to not only the wages they work for, or hours they work, but the conditions in which they work. Their bosses, would no longer be able to get away with what they would normally do. Therefor unions would help make the economic inequality more
As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
The organized labor movement from 1875 to 1900 is to blame for the problems unions face today as early labor unions crucified themselves politically, alienated themselves socially and failed to increase the socio-economic position of the worker, and in many cases only succeeded in worsening such positions. The political crucifixion of the early blue-collar industrial worker was directly caused by organized labor. Before such ‘organization, existed, workers flew under the political radar in the best of ways. They were allowed to live peaceful lives and given the unalienable right to life, liberty and the pursuit of happiness. In fact, the commodore Andrew Carnegie had achieved the American dream in his rags to riches advancement and he offered the same opportunity to each of his workers.
In the late nineteenth century known as the Gilded Age (or the Reconstruction period) and the early twentieth century known as the Progressive era, the nation went through great economic growth and social change. Beginning from the 1870s, there was rapid growth in innovations and big businesses. This could be because there was population growth and when there is population growth, there is a high demand of products and other necessities in order to strive in society. Many immigrants from Europe, mostly from the eastern and southern Europe, and Asia moved to American cities. Additionally, farmers from rural America desired to increase economically in society and since corporations ruled and political problems occurred, they decided to move into the cities. Afterwards, the 1900s started with the dominance of progressivism which many Americans tried to improve and solve the problems that were caused or had arisen because of the industrialization of the Gilded Age. It was basically the time when progressives fought for legislations like regulation of big businesses, end of the political corruption, and protection of the rights of the people: the poor, immigrants, workers, and consumers. Thus, between the periods 1870 to 1920, big businesses had arisen and taken control of the political and economic systems through corruption and innovations. In response, American citizens reacted negatively and formed labor unions and political systems to diminish the power that large corporations had in America.
The textile industry was, at one time, one of the largest industries in the south. Starting in the late 1800’s with small local looms, and spreading to become corporations who controled the south and whose influence stretched internationally. One of the first textile industries came to Gaston County North Carolina, and its huge success led to the opening of mills across the Carolina’s and Virginia. As these industries grew they began to control more and more of its employees lives. These huge corporations were permitted to take advantage of individuals because of their inability to fight back. The employyees of these mills lived in conditions resembling that of slaves before the civil war. They were worked greuling hours in inhospitable prisons called textile plants, yet were paid on average less than any other industrial worker in America. In the early twentieth century a sentiment of contempt began to grow between the laboring class and the all-powerful corporation. The masses began to push for union representation.
Because the economy was unstable, Franklin Roosevelt imposed many programs to boost the economy both helping and hindering American citizens through banking and financial reformation with government regulation. After declaring the “bank holiday,” Roosevelt created the Federal Deposit Insurance Corporation (FDIC) in order to put confidence back in the citizens and their ability to trust banks to keep their money. By also separating commercial banks from investment banks, the government was trying to keep the flow of money uniform. This idea is radical in form because of the new government imposed restrictions, and conservatives may argue this movement shows signs of socialism. Many people saw implications that free enterprise was disappearing; Herbert Hoover specifically mentions in his Anti-New Deal Campaign speech that he proposes to “amend the tax laws so as not to defeat free men and free enterprise.” The threat to free enterprise challenged the American economy because u...
The social and economic developments of the last quarter of the nineteenth century drastically changed the United States. The business world changed once industrialization was introduced to the world. Opportunities grew as people heard about the boundless American opportunities. Immigrants from all races flooded the cities which doubled in population from 1860-1900 (Barnes and Bowles, 2014, p. 34). However, as industries grew, owners prospered off the hard work of others. People started to feel they were not being treated fairly. People had to work harder and longer for their money. Barnes and Bowles (2014) noted “In the era of industrialization, millions of workers fought to simply have the right to work in safe conditions, and earn a fair wage” (p. 45). Many Americans feared that giant corporations would one day seek to restrict the ability of common people to get ahead and curtail individual freedoms. These fears were particularly strong among farmers, laborers, an...
Factory workers of this time had very little freedom. Aside from having to work outrageous hours for 6 days of the week, there was no job security, no solid way to survive day-to-day, and if a family member were to suffer an accident, families had no financial means to carry on. In the early 1900s, there were no labor laws, including the right to organize, an eight-hour day, safety standards, or unemployment/disability pensions. M...
Beginning in the late 1700’s and growing rapidly even today, labor unions form the backbone for the American workforce and continue to fight for the common interests of workers around the country. As we look at the history of these unions, we see powerful individuals such as Terrence Powderly, Samuel Gompers, and Eugene Debs rise up as leaders in a newfound movement that protected the rights of the common worker and ensured better wages, more reasonable hours, and safer working conditions for those people (History). The rise of these labor unions also warranted new legislation that would protect against child labor in factories and give health benefits to workers who were either retired or injured, but everyone was not on board with the idea of foundations working to protect the interests of the common worker. Conflict with their industries lead to many strikes across the country in the coal, steel, and railroad industries, and several of these would ultimately end up leading to bloodshed. However, the existence of labor unions in the United States and their influence on their respective industries still resonates today, and many of our modern ideals that we have today carry over from what these labor unions fought for during through the Industrial Revolution.
A common trend was always that wages were not keeping up with the cost of living. Many could not make ends meet and were struggling to simply survive. They started to question the effectiveness of the National Recovery Administration (N.R.A.). It was unfair to them that businesses were still making enormous profits while its employees were forced into poverty. Pushing for a unionization was disowned by factories where they threatened to close their doors if a worker’s union formed. Some thought businesses were crooked and angled themselves to take advantage of the economy to increase their
After the Civil War, many ideologies developed into the United States of America. Some of these ideologies included the free labor ideology and the producerist ideology. Free labor endorsed the belief that by removing slavery, or any other kind of barrier, everyone had an equal chance to try to get wealth (Farless). The producerist ideology tried to stay to the customary view of society and it stressed the importance of viewing the community instead of an individual (Farless). With these two ideologies, they had an impact on labor. By believing in the producerist ideology, people would be staying with tradition, and that leaves no change for our world. Many laborers wanted change, which led to problems for the laborers.
Montgomery, David. The Fall of the House of Labor: The Workplace, the State, and American Labor Activism, 1865-1925. New York: Cambridge University Press, 1987.
During this time the US received a large growth in industrialization, with millions of immigrants coming in and ready to work. Because of these large amount of available workers companies were now mass producing items. The businesses that were successful at this obtained an enormous amount of wealth, while the ones that could not keep up as quickly with mass production, were eaten up by the big businesses. Big businesses became the priority in the eyes of the government, not individual rights. A prime example of one of these big businesses was Standard Oil, which was owned by John Rockefeller, who is believed to be the wealthiest man in history. Many say that he made his fortune off the backs of the working class who through him worked long hours and got minimal pay, along with no protection in the workforce. This anger leads into the Progressive Era.
This was the first independent working-class movement in the world, that is, not simply sporadic uprisings or agitation, and arose after the Reform Bill of 1832 had failed. Working men had agitated for this bill and its failure left them still without the sought-for right to manhood suffrage. The Factory Act of 1832 had reduced working hours for children, but not for adults. The New Poor Law of 1834 caused resentment among workers by building workers’ housing in factory districts, where living conditions were bad.
America has gone through different economical phases, especially when one of the big issues is the working class and the conditions that the working class faced. The most rigorous and grueling conditions were brought about in the era of 1870-1920. At this time the make up to the working class shifted drastically, the work expectation was not possible, and the working conditions were horrendous. The world of the ‘working class’ thus changed drastically.
Because the Great Depression significantly reduced employment opportunities in the North for blacks, the rate of Southern black emigration slowed significantly during the 1930s. The Great Depression, though, increased the number of African American migrant workers. “The Great Depression also witnessed the entry of African Americans into the ranks of organized labor in unprecedented numbers. The formation in 1938 of the Congress of Industrial Organizations, an outgrowth of the American Federation of Labors Committee for Industrial Organization established in 1935, was crucial to this development” (statelib).