American Yop: Chapter 16 - Capital and Labor

Section 1: Introduction

• Great Railroad Strike of 1877: Marks a new era of labor conflict.
  • Wage cuts by rail lines amidst subsidies and dividends.
  • Strikes from Baltimore to St. Louis.
  • Local police and militias called; federal troops intervened.
  • Nearly 100 Americans died; $40 million property destroyed.
  • Led to the formation of institutionalized unions.

Section 2: The March of Capital

• Industrialization and Labor Unrest:
  • Railroads first to organize capital and government support.
  • Workers felt powerless; long hours, low wages.
• Technological and Administrative Innovations:
  • Reduced costs of production.
  • Taylorism introduced efficiency in mass production.
  • Mass production techniques expanded.
  • U.S. became the leading manufacturing nation by 1900.
• Corporation and Capital:
  • Corporations could amass capital while limiting liability.
  • Great Merger Movement reduced competition.

Section 3: The Rise of Inequality

• Industrial Capitalism and Inequality:
  • Enormous profits but millions of low-paid jobs.
  • Inequality shocked Americans; wealth disparity grew rapidly.
• Social Darwinism:
  • Justified wealth disparity through "survival of the fittest."
  • Key figures: Herbert Spencer, Andrew Carnegie.

Section 4: The Labor Movement

• Labor Organizing and Strikes:
  • Strikes for higher wages, shorter hours, safer conditions.
  • Knights of Labor and AFL emerged.
  • Major strikes: Homestead Strike, Pullman Strike.
  • Government often sided with big business.

Section 5: The Populist Movement

• Populist Response to Industrialization:
  • Farmers hit hard by industrialization, debt, and price falls.
  • Farmers' Alliance and People's Party formed.
  • Sought cooperative commonwealth and economic reforms.
• Populist Politics:
  • Advocated for nationalization of essential services and monetary reforms.
  • Gained significant political traction but faced challenges.

Section 6: William Jennings Bryan and the Politics of Gold

• Bryan's Political Impact:
  • Advocated for free silver to aid farmers.
  • His "Cross of Gold" speech gained national attention.
  • Presidential bids in 1896, 1900, and 1908; all unsuccessful.
  • Movement shifted populist energy into the Democratic Party.

Section 7: The Socialists

• Socialist Movement in America:
  • United farmers and workers against capitalist inequalities.
  • Emphasized collective ownership of production.
  • Notable figures: Eugene Debs, Big Bill Haywood.
  • Socialist Party and Industrial Workers of the World (IWW) formed.
  • Significant electoral impact but ultimately suppressed.

Section 8: Conclusion

• Impact of Industrial Capitalism:
  • Created economic disparity between the wealthy and the working class.
  • All Americans had to adapt to the new industrial world.