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Learning Objectives
• Explain the rise of the labor movement
• Explain the response by business and government
• Describe the rise of trusts and monopolies
• Describe their impact on workers and consumers
• Describe the governments response to trusts and monopolies
• Describe the working conditions in industrial America
Big Concepts
• As the nation industrialized and urbanized workers faced many challenges – low pay, dangerous conditions, long hours
• Women and children worked for less pay
• Workers began to organize into unions
• Unions went on strike against big business
• At first the government sided with big business
• Slowly the government began passing laws to break up powerful monopolies
Labor Union
• A organized collection of workers
• Fight for – better pay, shorter hours, safe work place
Strike
• Union tactic to refuse to work
• Disrupt the business
• Stand outside company / carry signs / give speeches
• Force business to negotiate
Eugene Debs
• Union leader and social activist
• Founded American Railway Union – one of first unions in America
• Led Pullman strike
• Ran for president as socialist
• Jailed multiple times
Samuel Gompers
• Labor Leader
• Founded American Federation of Labor
• Used collective bargaining to increase pay and lower working hours
Important Events
• Great Railroad Strike of 1877 – railroad workers strike, soldiers used to break strike. Led to better labor organization and larger state militias.
• Pullman Strike – Railroad strike led by Debs, government supports the Pullman railroad company
• Haymarket Square Bombings – Workers protest police brutality –bombs kill police – public turns on labor unions
• Coal Creek Labor Saga – Tennessee coal miners go on strike and are replaced by prisoners leading to violent conflict. State sends troops.
Trust and Monopoly
• Trust – group of investors who control multiple businesses• JP Morgan controlled many separate railroad companies
• Monopoly – one business that controls a certain part of the economy• Standard Oil – Controlled 90% oil market
Sherman Antitrust Act of 1890
• first Federal act that outlawed monopolistic business practices
• first measure passed by the U.S. Congress to prohibit trusts
Clayton Antitrust Act of 1914
• defines unethical business practices, such as price fixing and monopolies
• upholds various rights of labor unions
Chronology Timeline
1877 – Great Railroad Strike “Great Upheaval”
1894 – Pullman Strike
1891– Coal Creek Labor Saga
1886 – Haymarket Square Bombings
1890 – Sherman Antitrust Act
1914-Clayton Antitrust Act
1886 – Gompers forms the AFL
Continuity and change
Continuity Change
IndustrializationRailroadsUrbanization
Unions formBusiness versus laborAntitrust lawsEnd of laissez-faire