Big Business and Organized Labor

The Role of Big Business  Four main leaders emerged during the late 1800s to lead major corporations.  Cornelius Vanderbilt  shipping  Andrew Carnegie  steel  John D. Rockefeller  oil  J.P. Morgan  finance  These men were viewed in two different ways:  Robber barons  pushing out smaller companies; high prices to consumers  Captains of industry  adding more jobs to the labor force; provided financial backing for new technology; philanthropy

Social Darwinism and Gov. Regulation  What is Social Darwinism ?  Application of Darwin’s theory of evolution to society.  Social Darwinism stated that those who were more ‘fit’ would survive over time, making the society stronger as a whole.  Discrimination also increased, separating the wealthy from the poor.  To some, this meant that the government should leave large businesses alone.

Social Darwinism and Gov. Regulation  The government did impose regulations to limit corporate power  Interstate Commerce Commission = monitored the ever- growing railroad operations; first government body to do so.  Sherman Antitrust Act = outlawed trusts that restricted trade or commerce between states.

Workers Endure Hardships  As the push for greater profits dominated big business, the workers assumed worse conditions.  Industries employed large numbers of immigrants, as well as whole families.  During the 1890s, there was a push to end child labor in the United States.  Many families that worked for big businesses were forced to live in company towns– communities owned by the company and rented out to workers.  This was another example of how big business took advantage of its workers, as many workers were continually in debt to their business.

Origins of the Labor Union  Workers began to organize for greater rights as early as the 1820s.  They utilized a tactic known as collective bargaining, where they would negotiate as a group for higher wages or better working conditions.  The first national labor union was the National Trades Union.  Their biggest success was creating the 10-hour workday.

Socialism and the Knights of Labor  Socialism started spreading across Europe during the 1830s.  Socialism is a political philosophy that favors public control of property and income.  In 1869, Uriah Smith Stephens started a labor union called the Knights of Labor.  It accepted individuals from all trades, and even recruited African Americans and women.  Its goals were broad and comprehensive.

The Formation of the AFL  Samuel Gompers started the American Federation of Labor (AFL) in  The AFL was more selective in its membership, only recruiting skilled workers.  It also did not include women and African Americans as the KOL had.  Unlike the KOL, the AFL focused on specific goals such as wages, working hours, and working conditions.

Closing Question  If you were a worker in the late 1800s, would you join a labor union? Why or why not?