1. Gap between rich and poor grows
New wealthy business class grows
1890, 9% of population controlled 75% of nations wealth
Workers want change!

2. The wealthy dominated government
The rich did not care about worker’s issues
The gap between the rich and poor was wide
Tension between rich and poor grew
People started to wonder if capitalism & laissez faire economics was the answer
Looked to other economic/political systems
Socialism & Communism
Karl Marx & Fredrick Engels
Most viewed ideas as to radical

3. Socialism – economic and political philosophy that favors public instead of private control of property and income
Communist Manifesto – Karl Marx

4. Labor Unions Start to Form
Fight the injustices of capitalism
Shorter work days/weeks
Higher wages
Better/safer working conditions
End to child labor

5. Unions Formed Most employers were unwilling to change conditions
1. Workers in a trade joined together to bargain for better wages and working conditions
2. Goal = collective bargaining with owners to improve situation
Most employers were unwilling to change conditions
Workers threaten to strike – Scabs were hired
Sometimes mob riots broke out

6. Early Labor Unions Knights of Labor 1869
Organize all workers, men/women, skilled and unskilled, African Americans
Terence Powderly
Did not use strikes as tool
8 hour work day, equal wages for equal work, end to child labor

7. American Federation of Labor (AFL)
Led by Samuel Gompers
Skilled workers only – craft union
Use of strikes and boycotts
Force collective bargaining

8. Industrial Workers of the World “Wobblies”
Focused on unskilled workers
Strikes led to violence, many arrested for promoting strikes in war-related industries

10. Employers reactions Took measures to stop unions from forming
They feared higher wages would raise costs and make them less competitive
Loss of profits

11. Famous/Infamous Labor Strikes
The Great Railroad Strike of 1877
10% wage cuts due to recession on Baltimore and Ohio Railroads
Similar in other places in country as well, railroad workers reacted with violence
Strikes quickly spread from city to city
Pittsburgh, federal troops brought in to stop violence

12. Eugene V. Debs – led the brotherhood of Locomotive Fireman
Did not believe in violence
Formed the American Railway Union 1893 unite all railway workers skilled and unskilled

13. Haymarket Riot
Between 1881 and 1900 some 24,000 strikes erupted around US
Haymarket Riot. 1886
Workers at Chicago’s McCormick reaper factory wanted 8 hours days
Went on striker, scabs brought in violence breaks out
Police break it up, several are injured

14. Haymarket Riot
Group of anarchists joined the strikers at a protest rally in Chicago’s Haymarket Square
Someone throws a bomb into police formation, killing one officer
A riot breaks out, dozens were killed
Four anarchist were convicted and hung
They were later pardoned by Illinois governor
Labor unions get associated with violence and radical ideas

15. Homestead 1892 Henry Frick cut wages = workers strike
Hired Pinkertons (private police force) to break strike
12 hour shootout with strikers in sues, 10 dead, many other injured
Many arrested, few convicted
Homestead reopens under militia protection

16. Pullman 1894
George Pullman sets up towns just workers to attract a dedicated work force
All needs provided for (a lake, schools, a theater, a church, paved sidewalks, shade trees, athletic programs, a band)
Strict rules were enforced (ban on alcohol, mandatory church attendance)
Panic of 1893 forces lay offs and a 25% wage cut, yet prices in town did not decrease

17. A delegation of workers met to protest, Pullman fired them = workers strike
Pullman shut down plant
Workers went to Eugene V. Debs and American Railway Union for support
Called for a nationwide strike on Pullman Cars
Widespread local strikes followed = by 1894, 260,000 workers joined the Pullman Strike

18. This disrupted mail delivery and railroad traffic
Federal Government brought in and won court order that forbid union activity that disrupted railroad traffic
President Grover Cleveland sent in 2,500 troops to make sure it was obeyed and strike ended
Set precedent that court would not support union strikes and this helped limit union gains for 30 years

19. Middle Class emerges
As conditions and pay improve = stronger middle class began to emerge
a. Toolmakers, printers, managers of mines and factories
Gained a voice in politics
Government corrected some problems – some regulation

20. Question
How do you feel about the condition of workers in America? Explain.
Do you feel that the growing gap between the rich and poor in our country is a major problem? Explain.
Any thoughts on solutions?
What do you think separates our population the most? Religion? Race? Money? Explain.