These laws were passed as part of the program called the New Deal of President Franklin D. Roosevelt (1882–1945), who came to power during a period of high unemployment called the Great Depression. In 1914 automobile giant Henry Ford(1863–1947) made headline news when he started paying workers $5.00 a day—roughly double what other manufacturers were paying at the time. His experiments … The government wanted the company broken up in order to restore competition between the two constituent companies, and thereby to avoid higher prices for both passengers and companies shipping freight by rail. As a cigar maker, Gompers often took the role of a "reader"; other cigar makers would set aside some of their own production for him in exchange for having Gompers read books out loud to them, in order to relieve the boredom of their work. Whether politicians favored tax breaks for individuals or for businesses, there was little argument that the government should play an active role in helping to manage the overall economy. The list of strikes that resulted in violence from both the miners and the mine owners is a long one. Business owners viewed both as threats to their property and prosperity.) Westport, CT: Greenwood Press, 1973. In the United States, 40 percent of the population lived in cities, up from just 6 percent in 1800. Taking advantage of the emergency, Lewis successfully bargained for payments by employers to contribute money to a union fund that would in turn pay union members a pension (pay that continues after retirement) after age 62. Stein, Leon. As investors realized that prices had reached a peak, they started selling shares to take advantage of prices that were still high. A number of notable incidents went into building the union movement in the United States. Samuel Gompers (1850–1924) came to New York from a London slum, the son of a cigar maker. The Roosevelt administration's most famous case was Standard Oil Co. v. United States. Social and Political Impact of the Second Phase of the Industrial Revolution In 1935 the United Mine Workers Union led in the formation of the CIO, a federation of other unions organized by industry: the International Typographical Union; Amalgamated Clothing Workers; International Ladies' Garment Workers; United Textile Workers; Oil Field, Gas Well, and Refinery Workers; United Hatters, Cap, and Millinery Workers; and International Mine, Mill, and Smelter Workers. Their incomes also were low, and they lacked modern things that provided comfort and enjoyment. Paid vacations and health insurance were unknown. THE KNIGHTS OF LABOR In this way, Gompers educated himself on the job. Southern cotton plantations supplied the raw material, cotton, for factories in Britain as well as in New England, and Southerners saw no reason to pay more for fabric (as a result of tariffs) in order to benefit businesses in New England. The Second Industrial Revolution affected the regions of the United States differently. How the Second Industrial Revolution Changed Americans' Lives Factory Jobs Were Grueling. With the Pullman company refusing to bargain with the strikers on either the issue of reduced wages or the rent the company charged to its workers to live in company-owned houses near the Pullman factory, occasional fights erupted between frustrated workers and the armed guards hired by the railroads. "Mother Jones: The Woman." In 1889 Addams and a friend, Ellen Starr, rented part of an old mansion in Chicago and called it Hull House. The census of 1900 showed that almost 20 percent of children aged ten to fifteen who lived in urban areas worked full time. John C. Calhoun (1782–1850), vice president under Andrew Jackson (1767–1845), wrote an essay in 1828 titled "South Carolina Exposition and Protest," in which he argued that the tariff of 1828 violated the U.S. Constitution, and that therefore a state had the right to nullify it (declare it invalid), or else secede from the United States (pull out of or break away from the country). “We discovered that for six weeks they had worked from seven in the morning until nine at night,” Addams later wrote, “and they were exhausted as well as satiated. The Sherman Antitrust Act made it illegal for companies to conspire with one another to set (fix) prices on goods sold across state lines. The Pullman strike was a major setback in efforts to organize workers. Laurie, Bruce. Although Gompers started out believing that unions should limit their activities to strictly economic goals, he later shifted his position and encouraged the AFL to stand behind politicians who promised to support laws favorable to workers. In 1816 the U.S. Congress passed a tariff act that imposed a 25 percent tax on imports. Urbanization. The cultural ideal of the United States as a fresh new beginning, a place where brave individuals came in order to strike out into the wilderness and create a living as a pioneer farmer, was deeply embedded in American culture in the late nineteenth century. Telephone: (202) 624-6800 On May 9, 1894, a committee of the union met with Pullman and demanded that wages be restored. “You could produce all the parts of a gun and assemble any set and make a gun,” Satia says. 2. Theodore Roosevelt: A Strenuous Life. In the twentieth century, the federal government turned to other taxes (or reductions in taxes) to influence the behavior of consumers and businesses alike. Both the federal government and state governments often responded by sending the police or army troops to restore order, which usually meant breaking up union picket lines and defeating the strike. The House of Representatives passed the measure, but the Senate did not. In the United States, as more and more industrial enterprises opened (especially in New England) to manufacture goods (especially cloth), the government confronted the issue of whether, and how, to help these struggling companies succeed against larger, more established competitors in Britain. 20001-2198 Long-distance transportation networks connected by rail, steamship and canals opened new markets for farmers, factory owners and bankers who could bring America’s natural resources to a global marketplace. Industrial Revolution Reference Library. Lichtenstein, Nelson. The United Mine Workers Union had been formed in 1890 through the merger of two other mine workers' unions. Workers who tried to form a union were often fired immediately and banned from the premises, sending a strong message to other workers that union activities would cost them their jobs. Eager to protect their savings, most people were reluctant to buy things, and companies laid off workers by the thousands. Twenty Years at Hull-House. Pay was low, hours were long, and working conditions were brutal and often wildly unsafe. After the Civil War, the federal government sometimes took a more aggressive stand against unions as strikes became more frequent, a sign of the growing influence of unions. Tariff collections also had the advantage of raising money to pay off loans taken out to finance the Civil War, to provide pensions for Union war veterans, to pay for the war against Native Americans as the country expanded westward, and to bankroll public improvements such as highways (themselves an indirect way of supporting industry). Forced to drop out of school at age ten in order to earn money for his family, he is known today as the founder of the Federation of Labor and the union leader who focused attention on purely union issues, like pay, benefits, and shorter hours, without concentrating on basic political changes, as the socialists favored. Even though Scottish economist Adam Smith (1723–1790) had argued in 1776 in The Wealth of Nations that governments should refrain from meddling in economic matters, the reality is that people have come to expect the government to do something to improve the economy. The Haymarket Square incident marked the end of the Knights of Labor. “Ford is a great hero,” Freeman says, “but the other side of the coin is a nightmarish vision of the factory as Satan’s province.”. She was surprised when they refused. Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. In response, the union members at Pullman Palace Car Company went on strike. People endured the humiliation of standing in long lines to get a handout of bread just to keep their families from starving. If employers lacked orders for products, workers were told not to come in. At its peak, the Ford Motor Company factory in Michigan employed 40,000 workers under one big roof. The Act also barred unions from contributing money to political campaigns. Struggle and Lose, Struggle and Win: The United Mine Workers. By 1881 Gompers was active in establishing a union of unions, the Federation of Organized Trades and Labor Unions of the United States and Canada. The iron chariots also changed the human and natural environment of the West, and of course led to conflicts with Native Americans who had lived there for generations. Employers used the fresh supply of inexpensive labor to combat the influence of trade unions and to keep wages low. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates. Nations started to identify national pride and identities. Dalton, Kathleen. In October 1929 an event took place that eventually challenged whether the system of private ownership of business could survive. https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/social-and-political-impact-second-phase-industrial-revolution, "Social and Political Impact of the Second Phase of the Industrial Revolution American Federation of State, County and Municipal Employees.http://www.afscme.org/about/aframlink.htm (accessed on February 20, 2003). Eventually, starting in the 1930s, some of these separate companies merged, but the enormous combination created by John D. Rockefeller was never reassembled. Yet after World War I, the railroad would be replaced by the automobile. Asserting controls over private business through regulation (1900–1911). Having the union control the fund meant that workers would still receive a pension, even if the company for which they worked had gone out of business. Terrill, Tom E. The Tariff, Politics, and American Foreign Policy, 1874– 1901. At the same time, all kinds of goods became standardized for the first time, according to Priya Satia, professor of international history at Stanford University. The role of government changed significantly over the course of the Industrial Revolution, or, more exactly, notions of what the government should do about the economy changed. The government cited a law against business monopolies in obtaining the order, arguing that the railway union was acting as a monopoly by using its power to strike against railroad operators that were not part of the Pullman company. The Industrial Revolution was one of the most important events in human history and dramatically transformed life for people throughout the world. The result was a widespread shutdown of U.S. railroads, including those that delivered mail. and socialism. Encyclopedias almanacs transcripts and maps, Social and Political Impact of the Second Phase of the Industrial Revolution. In 1942 the federal government seized coal mines to end a strike that was viewed as crippling the U.S. economy at a time when the nation was fighting World War II. While business owners were covered by laws protecting private property, workers had not previously been given parallel protection in pursuing their interests in the form of unions. The industrial revolution was indeed a creative period in the course of our history, and almost equals the renaissance period in both scope and variety. In this way, the unions came to own large parts of important businesses. Household items like soap, butter and clothing that used to be made at home started being made in factories as well. The second industrial revolution was said to be between 1870 and 1914, after the civil war. The history of American labor unions is almost as long, and as complex, as the history of the Industrial Revolution itself. Manias, Panics, and Crashes: A History of Financial Crises. They even disagree on precisely when recessions begin and end. . The British Agricultural Revolution refers to the unprecedented rise … Railroads also benefited from cheap coal for their steam locomotives. On October 29, prices on the New York Stock exchange plunged. This organization was an alliance of unions that represented skilled workers, such as cigar makers, carpenters, and plumbers, regardless of their employer. Universal History Archive/UIG/Getty Images. Sometimes, as in the case of cigar makers in New York City, tiny apartments were also the workplace, where the father and mother devoted one room to rolling tobacco leaves into cigars, used the other room for living and sleeping, and had a small kitchen off to the side. There would be no history of labor unions without industrialization, just as there would be no story of industrialization without workers. The following year troops quelled rioting by striking miners at Cripple Creek. Others problems created by urbanization include, increased crime rates, poverty, deforestation, and the formation of slums (considered to be one of the worst effects of urbanization). Prior to 1890 it was perfectly legal for corporations to band together and behave in ways that promoted their own interests, such as agreeing not to lower prices on goods they all manufactured. The downturn that started in 1929 was the worst that had taken place in U.S. history. If the crops failed because of drought or plant disease, farmers became refugees headed for the city to find work. (Throughout history owners have sometimes disputed this idea; workers seldom have.) It increased wealth. New York: Four Winds Press, 1977. By 1932, at least 25 percent of workers did not have a job, and many others could only find part-time work. The Supreme Court agreed with the government's argument and ordered that Northern Securities be dissolved and that the two railroads once again be operated as separate companies. Sometimes the conflict has been resolved peacefully, oftentimes it has not. She also became a leading campaigner for the right of women to vote, which was finally achieved in 1920. The Triangle Fire. Addams, Jane. Such profound transformations hardly went unnoticed. Later Addams added kindergarten classes, evening classes for adults, an employment bureau, even an art gallery, a gymnasium, a book bindery, and a music school. The Industrial Revolution, the period in which agrarian and handicraft economies shifted rapidly to industrial and machine-manufacturing-dominated ones, began in the United Kingdom in the 18th century and later spread throughout many other parts of the world. In 1864 Gompers joined the cigar makers' union, and ten years later he became the president of its local chapter (branch). Enormous clouds of dust that looked like tornadoes swept through Oklahoma, forcing families off their farms and into a desperate migration to California, where they were stopped from entering at the state border. In the period from 1870 to 1890, there was an economy and productivity boom in the industrialized countries. In some respects, the CIO was a reflection of the second phase of the Industrial Revolution, since it focused on workers in so-called mass-production industries like coal, steel, automobiles, rubber, glass, and textiles. The most popular answer (popular among the New England factory owners, anyway) was to wipe out England's advantage by taxing goods imported into the United States. In 1914 automobile giant Henry Ford (1863–1947) made headline news when he started paying workers $5.00 a day—roughly double what other manufacturers were paying at the time. John L. Lewis: A Biography. The Civilian Conservation Corps provided jobs in federal parks to unemployed urban workers. People seldom bathed or washed their hair (once a month would have been common for working-class women in 1900). HISTORY reviews and updates its content regularly to ensure it is complete and accurate. In the next twenty years, the majority of Americans would be found residing in urban areas. The labor federation defeated Gompers's bid for reelection to a one-year term as union president and instead chose John McBride, who favored a more political, socialist-oriented approach. Charity was assigned to churches or to voluntary social workers, like Jane Addams. The source of the loans was depositors' money, which was now gone. Some trains were set on fire. When a person grew old and wanted to retire, it was necessary to have personal savings to live on; companies did not pay pensions to retired employees. Rockefeller often used the word Standard in company names. No provision was made in the Constitution for aiding large numbers of people in cities who were without jobs, money, food, or homes. The second world war in some ways marks the end of the period called the Industrial Revolution. This caused people to be infected with lung diseases and it was hard for people to keep their houses and clothes clean from the dust. Greensboro, NC: Morgan Reynolds, 2000. Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. There, he spent his time reading and as a result became a socialist. The prospect of proliferation of weapons of mass destruction, along with the after effects of 200 years of man's unquenching thirst for more power, control, and wealth during the first and second industrial revolutions has really accelerated the odds that are dangerously close in … But in early October, prices stopped rising. “Bison had yielded to cattle; mountains had been blasted and bored. Actively alleviating suffering resulting from economic depression (1932 to present). Tariffs on imported manufactured goods were unpopular with many people in the South, who resented paying higher prices for manufactured goods without gaining any of the economic benefits that flowed to manufacturers in the North. During the 1800s, the Industrial Revolution created dangerous environmental effects. Urbanization & Other Effects of the Industrial Revolution: Social & Economic Impacts Migration from Rural to Urban Settings in Europe and the U.S.: History and Effects In 1877 ten union activists were hanged in Pennsylvania; in 1892 eighteen miners and private guards died during the Homestead Strike near Homestead, Pennsylvania. In the first stage, it will argue the positive impact of the Industrial Revolution on economy and urbanisation. Anarchists believed in the elimination of government institutions in favor of voluntary associations; socialists believed that government, controlled democratically, should own and operate major businesses. Most of the strikers went back to work at their old wages. The number of employees represented by unions grew from 3.6…, Unions The strike was soon settled, and establishment of the Health and Retirement Fund was part of the settlement. Other activities that became illegal were group boycotts, in which two companies refused to do business with a third company as a means of driving that third company out of business, and horizontal market division, in which companies agreed to stay out of each other's geographical areas. Addams campaigned vigorously for laws governing child labor, mandatory schooling for children, factory safety inspections, and labor unions. Should the government take a leading role in helping people suffering from unemployment, poverty, or homelessness? The responses of the federal government to the Industrial Revolution can be divided into four broad categories: These government activities are not mutually exclusive. Encyclopedia.com. After the Civil War, the Republican Party largely dominated the federal government. Negatives of the Industrial Revolution Pollution: industrial revolution is often considered to be a major source of pollution; before the advent of the industrial revolution and the various factories there was little by way of pollution. . Railroad lines expanded from 35,000 miles in 1865 to 254,000 miles in 1916. For much of the nation's history, agriculture was more important, and engaged more people, than industrialization. Taxes were cut to make more money available to be spent (by both businesses and consumers), or to encourage businesses to invest in new factories as a means of stimulating economic growth. (Ford paid his workers better in part so they could afford to buy the cars they were making, generating more sales—and profits—for Ford.) A form of government in which all the people own property, including both land and capital, in common. 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