16. Capital and Labor _ THE AMERICAN YAWP

I. Introduction

• The Great Railroad Strike of 1877 marks a pivotal moment in labor conflict in the U.S.

• Economic downturn followed the collapse of the railroad bubble in 1873, leading to wage cuts for workers despite profitable dividends for shareholders.

• Nationwide strikes occurred, crippling the economy and leading to violent confrontations:

  • In Pittsburgh, state militia killed strikers.

  • Strikers retaliated by burning city property.

  • The federal government intervened to restore order and protect railways.

• The strike led to significant gains in awareness for unionization among workers and heightened political influence for businesses.

II. The March of Capital

• Industrialization led to rising labor unrest; railroads exemplified this due to their significant capital and regulatory support.

• Workers felt increasingly powerless in a massive industrial economy; individual skills mattered less.

• The post-Civil War era brought revolutionary changes in production (e.g., new technologies, national investments).

• Scientific Management (Taylorism) introduced by Frederick Taylor focused on efficiency through specialization and mass production.

  • Example: division of tasks in factories improved productivity.

• In the late 19th century, companies like Singer and McCormick pioneered mass production technologies and achieved vast economies of scale.

• Corporate consolidation began with a wave of mergers leading to monopolistic control in several industries.

III. The Rise of Inequality

• Industrial capitalism generated astounding productivity but also dire working conditions and stark economic disparities.

• The wealth gap widened dramatically, with the top 1% of Americans holding a quarter of national wealth by 1890.

• Notion of the Gilded Age emerged, highlighting contrasts between wealth and widespread poverty.

• Social Darwinism gained traction, justifying economic inequality as a natural outcome of competition, rooted in Darwin’s theories of evolution.

IV. The Labor Movement

• Despite industrial advances, workers faced long hours and low wages, driving them to strike for better conditions.

• The Knights of Labor emerged in the 1880s, promoting a vision for labor's rights and achieving membership peaks along the way.

• Following a series of strikes led by the Knights, public perception linked unions with violence, especially after events like the Haymarket Riot.

• The American Federation of Labor (AFL) arose as a conservative counterpart, aiming for practical gains through traditional trade unionism.

• Major strikes, including those at Homestead and Pullman, demonstrated the ongoing struggle between labor and capital.

V. The Populist Movement

• Farmers, feeling the pressures of industrialization and falling commodity prices, organized via the Farmers’ Alliance to counteract corporate power.

• The People’s Party (Populists) emerged as a political movement representing agricultural workers' interests, capitalizing on dissatisfaction within established political parties.

• Populist rhetoric gained momentum during the Panic of 1893, with leaders like Mary Elizabeth Lease articulating frustrations against Wall Street.

• Despite their success in local elections, Populists faced backlash and suppression, particularly in the racially charged South.

VI. William Jennings Bryan and the Politics of Gold

• William Jennings Bryan emerged as a key figure, promoting free silver and addressing the plight of farmers.

• Bryan, the Democratic presidential candidate in 1896, faced off against William McKinley, who upheld the gold standard.

• Bryan's powerful oratory in his "Cross of Gold" speech connected with the masses, but ultimately, he lost due to strong opposition financing.

• His candidacy helped introduce Populist ideas into mainstream politics, although ultimately divided their base.

VII. The Socialists

• Socialist movements sought to unite farmers and laborers against capitalistic excesses and advocate for workers' rights.

• Figures like Eugene V. Debs championed the cause, promoting a vision of collective ownership and labor emancipation.

• The Socialist Party of America gained traction, especially during the early 20th century, with notable victories in local and congressional elections.

• However, socialist ideals faced obstacles with growing government suppression and varying public acceptance of socialist principles.

VIII. Conclusion

• The evolution of capital in America dramatically transformed society, creating vast wealth alongside deep poverty.

• Individuals had to navigate this new industrial landscape, whether as beneficiaries of newfound prosperity or as laborers grappling with unfair conditions.