Chapter 16

History Since 1856

The Great Railroad Strike of 1877

A massive, spontaneous labor uprising that began when railroads cut wages during a depression. It spread from Baltimore to St. Louis, shutting down rail traffic and prompting violent clashes with militias and federal troops. It marked the beginning of major labor conflict in industrial America.

Economic Change

The post–Civil War era saw rapid industrialization, expansion of markets, and technological innovation. These changes brought mass production, new corporate structures, and a dramatic shift from skilled labor to unskilled factory work—deepening income inequality and sparking labor unrest.

Taylorism, Mass Production, and Economies of Scale

Frederick Taylor’s scientific management (Taylorism) promoted efficiency by dividing tasks into specialized, repetitive motions. Combined with interchangeable parts and assembly lines, it drove mass production. Economies of scale meant the more a company produced, the lower the cost per unit—leading to massive profits and corporate consolidation.

The Corporation

A legal structure allowing businesses to raise large amounts of capital while limiting investor liability. After the Civil War, corporations became central to American capitalism, enabling industrial expansion and reducing individual risk for investors.

The Great Merger Movement

Between 1895 and 1904, thousands of firms consolidated into monopolies or trusts to avoid destructive competition. By 1901, companies like U.S. Steel dominated entire industries, signaling the rise of corporate power and monopoly capitalism.

The “Robber Barons”

A critical term for wealthy industrialists like Vanderbilt, Carnegie, Rockefeller, and J.P. Morgan. Though praised for economic growth and philanthropy, they were accused of exploiting workers, manipulating markets, and amassing excessive wealth.

Social Darwinism

A theory adapted from Darwin’s ideas, asserting that economic success was a sign of superiority and that aiding the poor would disrupt natural progress. It was used by elites to justify inequality, oppose social welfare, and support laissez-faire capitalism.

Industrial Working Conditions

Workers faced long hours, low pay, frequent layoffs, and dangerous environments. Jobs became increasingly de-skilled, while living conditions in urban areas were often crowded and unsanitary. These hardships drove many to support unionization and reform movements.

Unionization

Workers organized into labor unions to fight for better wages, hours, and conditions. Though often met with violence and legal resistance, unions became a major force in challenging the power of capital.

The Knights of Labor

An inclusive labor union that welcomed all workers except bankers, lawyers, and liquor dealers. It aimed to create a cooperative society and advocated for the eight-hour day. Its influence declined after being linked to violence following the Haymarket Affair.

The Haymarket Affair

A violent confrontation in Chicago (1886) between police and labor protesters advocating for the eight-hour day. A bomb killed several officers, and anarchists were blamed and executed despite a lack of evidence. The incident damaged public perception of labor unions.

The American Federation of Labor (AFL)

A conservative labor federation led by Samuel Gompers. Unlike the Knights, it focused on skilled workers and sought practical gains like higher wages and safer conditions through negotiation rather than broad social reform.

The Homestead Strike

An 1892 strike at Carnegie’s steel plant in Pennsylvania over wage cuts. Workers clashed with Pinkerton agents and temporarily won, but the state militia broke the strike. The union collapsed, highlighting the challenges of labor against powerful corporations.

The Pullman Strike

A 1894 nationwide railroad strike sparked by wage cuts and high company-owned housing costs. Led by Eugene Debs and the American Railway Union, it was crushed by federal troops sent by President Cleveland, revealing government alignment with corporate interests.

The Farmers’ Alliance

A network of cooperatives formed in the 1870s–80s to help farmers fight debt, falling prices, and railroad monopolies. It promoted collective action, political reform, and eventually led to the formation of the Populist Party.

The People’s Party (The Populists)

A political party formed in the 1890s by farmers, laborers, and reformers to challenge corporate power and the two-party system. It advocated for free silver, government control of railroads, and political reforms to empower the working class.

The Omaha Platform

The 1892 platform of the Populist Party. It called for public ownership of railroads and telegraphs, a graduated income tax, direct election of senators, and free silver—all aimed at challenging elite control of politics and the economy.

William Jennings Bryan

A Democratic politician who adopted Populist causes, especially free silver. His famous “Cross of Gold” speech earned him the 1896 presidential nomination. Though he lost to McKinley, Bryan reshaped the Democratic Party around reformist and anti-corporate ideas.

Free Silver

A demand for the unlimited coinage of silver to inflate the money supply and help debt-ridden farmers. Supported by Populists and Bryan, it clashed with the gold standard favored by industrialists and conservatives.

Eugene Debs

A former labor leader who led the American Railway Union during the Pullman Strike. After being jailed, he became a leading American socialist, co-founding the Socialist Party of America and running for president multiple times.