Ch. 24: Industrialization and Labor Unions

Interstate Commerce Act

serve notice there was a public interest in private Enterprise the government was bound to protect.

Government involvement in the economy

started at the local level with Granger Laws- State laws that regulated the railroad (no pool, publish prices, etc .)

Pool

agreement to divide business in given area and share the profits.

Carnegie

made a commitment to giving his fortune away- philanthropic and charitable; he had given away 90 % of his fortune by the time he died- donated to museums, universities, libraries.

labor conflicts

The late 19th century witnessed the most deadly- and frequent- labor conflicts in American history; so many people felt exploited by big companies.

Stock watering

Inflating the value of a company and selling the stock for more than its actually worth- harmful to the public because people inside company knows actually profitable.

Monopoly Capitalism

post- civil war (1869- 1896): economy dominated by trusts and monopolies; give supporting evidence (Standard Oil Company)

Capitalist economy

The consumers dictate the prices of goods and services.

Income Gap/Standard of Living

Huge income gap during the Gilded Age 10% of the population (industrialists and their families) controlled 90% of the income Urban poor were at the bottom of the income ladder They were working long hours in factory and mills jobs for little pay and no benefits Now the rural poor were at the bottom Despite the poor working conditions, most Americans did see an increase in their standard of living, if even a slight one

Labor Movement

By 1900, ⅔ of all employed Americans worked for wages The late 19th century witnessed the most deadly--and frequent--labor conflicts in American history; so many people felt exploited by big companies By 1900 only 3% of American workers belonged to unions Management held the upper hand in labor disputes, with support (generally) from the government People were beginning to recognize the need for better balance in the workplace Public attitudes were changing toward labor unions (muck bringing journalists expose horrible working conditions)