Capital and Labor: The Second Industrial Revolution Flashcards

The Second Industrial Revolution (1870–1914)

• The period between $1870$ and $1914$ marked a significant post-Civil War boom in industry and technological innovation, primarily characterized as the Second Industrial Revolution.

• This industrial boom was concentrated in the North, raising questions regarding the lack of a similar industrial revolution in the Southern United States during the same timeframe.

• The Depression of $1873$, triggered by the failure of Jay Cooke & Co., led to severe worker retaliation against layoffs and wage cuts.

• The Great Railroad Strike of $1877$ served as a critical turning point and redefined the relationship between Capital and the State, establishing precedents for the role of police and military intervention in labor disputes and shaping worker identity.

The Rise of the New Financial Empire

• American industrialism and mass production allowed the U.S. economy to compete with and eventually exceed the power of old European colonial empires by World War I.

• The corporation became a primary legal mechanism. Utilizing state incorporation laws passed during the Market Revolution of the early-nineteenth century, enterprises were able to marshal vast amounts of capital while limiting shareholder liability.

• Rapid growth combined with a lack of regulation created a highly unstable market environment.

• By $1913$, the United States was responsible for one-third of the global industrial output, producing more than Britain, France, and Germany combined.

Comparative Industrial Growth Rates (1850s–1913)

• Growth patterns varied significantly across industrialized nations during the period:

  • Germany: $4.3$ (1850s–1873), $2.9$ (1873–1890), $4.1$ (1890–1913).

  • United Kingdom: $3.0$ (1850s–1873), $1.7$ (1873–1890), $2.0$ (1890–1913).

  • United States: $6.2$ (1850s–1873), $4.7$ (1873–1890), $5.3$ (1890–1913).

  • France: $1.7$ (1850s–1873), $1.3$ (1873–1890), $2.5$ (1890–1913).

  • Italy: $0.9$ (1873–1890), $3.0$ (1890–1913).

  • Sweden: $3.1$ (1873–1890), $3.5$ (1890–1913).

Mergers, Monopolies, and Industrial Consolidation

• Between $1895$ and $1904$, a total of $4,000$ companies—representing approximately $20\%$ of the American economy—were folded into rival firms.

• A group of $41$ consolidations alone controlled over $70\%$ of the markets in their respective industries.

• U.S. Steel became the first billion-dollar company at the turn of the century, achieving total industry dominance.

• By $1901$, the wealthiest $10\%$ of the population controlled $90\%$ of the wealth. In comparison, as of late $2022$, the richest $1\%$ of Americans held a total of $\$43.45$ trillion, and $735$ billionaires possessed more wealth than the bottom half of U.S. households. U.S. billionaire wealth increased by $70\%$ during the COVID pandemic.

The Gilded Age and the New American Aristocracy

• The "Gilded Age," a term coined by Mark Twain in his $1873$ novel, describes the period from approximately $1870$ to $1900$.

• Technological innovation in factories and transport systems gave workers new responsibilities, but corporate administrative frameworks funneled profits upward, diminishing the value of skilled labor.

• Industry leaders emerged as a new American aristocracy, often categorized as "Old Money" versus "Nouveau Riche" (e.g., the conflict between the Astors and the Vanderbilts).

• High-profile figures of this era included John D. Rockefeller, J.P. Morgan, Vanderbilt, Carnegie, Astor, and Frick.

• John D. Rockefeller became the first American billionaire, with a peak net worth of approximately $\$418$ billion (adjusted for inflation to $2019$ dollars). J.P. Morgan possessed $\$80$ million at his death in $1913$. In the modern context, Jeff Bezos has a net worth of $\$238.2$ billion.

• The "Dollar Princesses" represented the relationship between this new American wealth and European nobility.

• Despite the massive production of wealth, the quality of life for the majority of urban Americans actually worsened during this era.

Labor Organizations: Unions and Ideologies

• Capitalism: A system based on private ownership and the popularization of wage labor.

• Communism: A social and political ideology that influenced various worker movements, such as the Workingmen’s Party.

• Labor activism during the Gilded Age was met with systematic, targeted violence from the capitalist class.

• National Labor Union: Collapsed in $1873$.

• Knights of Labor (KoL): Founded in $1869$. By $1886$, it accounted for $20\%$ of all workers. It was notable for including black workers and "unskilled laborers."

• American Federation of Labor (AFL): Founded in $1886$ by craft unions that broke away from the KoL; focused primarily on skilled laborers and became the largest union group in the first half of the $20^{th}$ century.

• The Haymarket Riot ($1886$) permanently associated unions with radicalism and violence in the public consciousness.

Significant Labor Strikes and Massacres

• St. Louis General Strike ($1877$): One of the first general strikes in the U.S., growing out of the Great Railroad Strike. Organized by the Knights of Labor and the Marxist-leaning Workingmen’s Party. For a few days in July, workers took over St. Louis, and a communist party essentially ruled the city. This occurred following the failure of $18,000$ businesses between $1873$ and $1875$.

• Thibodaux Massacre (November $22\text{–}25$, $1887$): Louisiana Militia and bands of citizens shot at least $35$ unarmed black sugar workers and lynched two strike leaders. The workers were striking for $\$1.00$ per day. It was the largest strike in the industry's history and the first coordinated by the Knights of Labor.

• Morewood Massacre (April $2$, $1891$): Nine coke (coal) workers were killed in Morewood, Pennsylvania, striking for higher wages and an eight-hour workday. Members of the $10^{th}$ regiment of the National Guard, commanded by Captain Loar, fired into the crowd. Recorded victims included:

  • Paul Dohannis (Standard)

  • Valentine Zeidel (Donnelly)

  • James Josef Brochto (Tarrs)

  • Jacob Shucaskey (Tarrs), who left a wife and five children

  • John Fudora (Standard)

  • Antonio Anda Rist (Standard)

  • Crsezo Cresinger (Tarrs)

  • Joseph Klassmand (Donnelly)

  • Paul Galinsky (Spring Garden), who left a wife and six children

• Bituminous Coal Miners’ Strike ($1894$): The United Mine Workers, with only $\$2,600$ in their treasury, called a strike involving $180,000$ miners. Near Uniontown, PA, $15$ guards armed with machine guns killed $5$ strikers and wounded $8$.

• Pullman Strike ($1894$): A nationwide railroad strike (American Railway Union vs. Pullman Company). Grover Cleveland ordered the army to intervene. $30$ people were killed, $57$ injured, and $\$80$ million was lost in property damage.

• Pressed Steel Car Strike ($1909$): A bloody battle involving the Pennsylvania State Police; at least $12$ and perhaps up to $26$ people died.

• Battle of Blair Mountain ($1921$): The largest labor uprising in U.S. history and largest armed uprising since the Civil War. Over $10,000$ miners fought $3,000$ strikebreakers/police. Over one million rounds were fired. The U.S. Army intervened. Between $50\text{–}100$ workers were killed, and $985$ were arrested.

Extensive List of Gilded Age Labor Conflicts

• Great Railroad Strike ($1877$)

• Cigarmakers’ Strike ($1877$)

• Cohoes New York, Cotton Mill Strike ($1882$)

• Cowboy Strike ($1883$)

• Lynchburg Virginia, Tobacco Workers’ Strike ($1883$)

• Molders’ Lockout ($1883$)

• Fall River Massachusetts, Textile Strike ($1884$)

• Union Pacific Railroad Strike ($1884$)

• Cloakmakers’ General Strike ($1885$)

• McCormick Harvesting Machine Company Strike ($1885$ and $1886$)

• Southwest Railroad Strike ($1885$)

• Yonkers New York, Carpet Weavers’ Strike ($1885$)

• Augusta Georgia, Textile Strike ($1886$)

• Cowboy Strike ($1886$)

• Eight-Hour Strikes ($1886$)

• Coxey’s Army marches on Washington D.C. ($1894$)

• Cripple Creek miners’ strike of $1894$

• Homestead Strike ($1892$)

New Logics and Justifications for Inequality

• Social Darwinism: Developed by Herbert Spencer in the $1870s$, arguing that welfare defies the natural order and prevents the strong from overtaking the weak.

• Eugenics: Founded by Francis Galton ($1883$) and continued by Charles Davenport.

• Scientific Racism: Included phrenology and craniology to provide a biological basis for inequality.

• Note: These ideologies were not fronted by Charles Darwin himself and were resisted by Progressive Era reformers and labor activists.

Urbanization and the Progressive Era

• Industrial cities were characterized by sharp segregation between the wealthy and working people.

• Triangle Shirtwaist Factory Fire: A major labor catastrophe highlighting unsafe conditions.

• Jacob Riis's How the Other Half Lives: Exposed the living conditions in urban tenements.

• Upton Sinclair's The Jungle ($1905$): Exposed conditions in the meatpacking industry.

• Child Labor: Widespread among the "Newsies" and in factories.

• Progressive Era Reformers: Primarily upper- or upper-middle-class individuals (e.g., Jane Addams and Hull House) who sought to aid the poor. Their approach was often well-intentioned but could be paternalistic and condescending. Goals included immigrant assimilation and hygiene improvements.

Political Forces: Populists and Socialists

• Populist Party: Comprised largely of rural, agrarian workers and farmers (Farmers’ Alliance). They were distrustful of corporations, cities, and secularism. It was the most significant third party in American history before being subsumed by the Democratic Party.

• Socialist Party ($1901$): Represented a diverse group (mixed race, gender, class). Key figures included Eugene V. Debs, Helen Keller, and Jack London. In $1912$, Eugene V. Debs received almost one million votes ($6\%$ of the total) for president.

• Political Dominance: Republicans became the party of big business and dominated politics during the Gilded Age. They won $12$ out of $16$ presidential elections between the Civil War and the Great Depression.

Labor Outside the Urban North

• The South: Industrialized in specific sectors like grain farming through mechanical reapers; however, the high cost of this technology kept it out of reach for most farmers.

• Chinese Workers: Between $15,000$ and $20,000$ Chinese immigrants performed the majority of the labor on the Transcontinental Railroad starting in $1863$. Hundreds died due to landslides, explosions, and disease.

Taylorism and "Business Science"

• Frederick Taylor introduced Taylorism or "scientific management."

• This involved using scientific language to subdivide tasks, maximize efficiency, and lower production costs.

• The Henry Ford assembly line is the primary example of this strategy.

• Impact: Led to the alienation of labor and unprecedented factory sizes.

1. The Second Industrial Revolution (1870–1914)

   • Post-Civil War boom in industry and technology in the U.S.

   • Concentrated in the North; lack of Southern industrial growth.

   • Great Railroad Strike of 1877: A critical turning point in labor relations.

2. The Rise of the New Financial Empire

   • U.S. economy surpassed European powers by WWI.

   • Corporations emerged, utilizing state incorporation laws.

   • U.S. produced one-third of global industrial output by 1913.

3. Labor Conflicts and Strikes

   • Great Railroad Strike (1877): Major strike for wage cuts; led to police and military intervention.

   • Homestead Strike (1892): Steelworkers protested wage cuts; violent clashes with Pinkerton agents occurred.

   • Pullman Strike (1894): Nationwide railroad strike opposing wage cuts; Grover Cleveland sent troops, leading to deaths and property damage.

4. Mergers and Monopolies

   • 4,000 companies merged (1895-1904); U.S. Steel became the first billion-dollar company.

   • Increased concentration of wealth among the richest in society.

5. The Gilded Age: New American Aristocracy

   • Rise of rich industrialists (e.g., Rockefeller, Carnegie) contrasted with worsening living conditions for urban workers.

   • Notable figures and wealth disparities highlighted.    

6. Labor Movements and Organizations

   • Emergence of labor unions (e.g., Knights of Labor, AFL).

   • Labor activism met with violence and systematic opposition from corporations.