Industrialization and Politics USHC 4.4

Inventions and Farmers American farmers more efficient –Steel plow – John Deere –Mechanical reaper – Cyrus McCormick US becoming one of world’s largest food producers

Effect on Prices Supply / Demand –Price of a product determined by what people will pay –If supply is low and demand is high, prices are higher –If supply is high and demand is low, prices are low

Effect on Prices As farmers become more efficient, supply increases causing prices to drop. Problems: –Same work, less profit –Unable to pay loans for farms and equipment –Banks foreclose loans

Farmers Reaction Farmers first response –Plant more crops –Causes supply to rise which causes prices to fall more Blame turned to railroads –High freight prices –Many railroads are monopolies

Legal Efforts Farmers attempt to organize politically –Elect pro-farm officials Granger Laws – passed by states to limit prices on shipping and storing goods Supreme Court eventually rules that these laws cannot be enforced since only Congress can regulate interstate trade.

Efforts of Congress Interstate Commerce Act –Congress to regulate prices and practices of railroads –Rail companies have $$$$ to influence many legislators –Loopholes in laws benefit railroad companies –Supreme Court also limits the effectiveness of Interstate Commerce Act

Farmer Politics Populist Party Platform –Regulation of railroads –Regulation of banking –Cheap money based on silver –Popular election of Senators –Secret ballot –Graduated income tax

Labor Unions Problems in big business for workers –Long hours, low wages, and safety issues –Unemployment, injury, and death –Business used workers like machines Strikes have limited success –Constant stream of people needing work –Scabs –Violence between picketers and scabs “Yellow dog” contracts

Major Strikes Railroad Strike of 1877 Haymarket Square Incident Pullman Strike –Rail car workers Public perception of unions –Interrupt American economy –Violent –Anarchists and communists

Union Successes Overall lack of success Immigrants were often attracted to unions –Reemphasizes mistrust public Collective Bargaining –Successes with improved wages, hours and conditions –8 hour workday, child labor laws, improve safety at work

Election of 1896 Big issues –Money: paper currency v. metal, gold v. silver –Government support of Big Business or the workers and farmers William McKinley, Republican –Big Business supporter William Jennings Bryan, Democrat –“Cross of Gold” speech McKinley wins very close election Populist ideas merge with increasingly popular Progressive Party