Labor and Economy Hannah Davis Morgan Harrell Aaron Koch
Thesis: Although the United States began as an economic underdog, it grew to a world superpower through a combination of the shifts from an agricultural economy to an industrial giant, from small isolated businesses to big international corporations, and from isolated regional labor organizations to powerful national labor unions.
Mercantilism An economic system to gain wealth by controlling colonial trade Navigation Acts- passed by Parliament 1. goods could only be traded with England 2. All trade goods had to be transported on English ships 3. all trade goods had to pass through English ports to be taxed
Indentured Servants 1607 first Virginia planters arrive with indentured servants 2/3 of the Immigrants that arrived the Colonies were originally indentured servants
Indentured Slaves Indentured servants maintained some rights unlike slavery Contract often included land and other necessities As demand for labor increased land owner’s turned to slavery
Slavery 1619 First Slaves arrive in Virginia Massachusetts passed the first slave laws in 1641 and Virginia followed 20 years later In certain area’s the slave population made up 50-60% of the overall population
Cotton Gin EliWhitney invented it in 1793 Lead to an increase of cotton production (“King Cotton”)
Louisiana Purchase The Haitian Rebellion Louisiana Purchase Opened up New Orleans Port, helped Western Farmers and increased Labor in the South 1803
Jefferson vs Hamilton Limited Federal Government Strong Federal GovernmentNational Bank Unconstitutional National Bank Constitutional Farming Economy Merchant/Business EconomyNational Government pays only National Government helps pay National Debt State Debts Supported by the elitesSupported by common people (Merchants, industry, landowners, (farmers, tradesmen) investors, lawyers, clergy)
Jefferson vs HamiltonStrict Construction Loose Construction Opposed National Supported National Bank Bank Constitution is Constitution is inflexible; the flexible; it sets government can guidelines for only do what is government power literally stated For Bank- gov’t Against Bank- not needed bank to in Constitution regulate trade
War of 1812 British Blockade forced Americans to become more independent Regions became more interdependent
American System A pre-Civil War set of measures designed to unify the nation and strengthen its economy with protective tariffs, a national bank, and such international improvements as the development of a transportation system
American System I.D. In 1815 under President Madison the American System wasput into place. The goal of the American System was to help the US become economically independent. This happenedby the US establishing the New National Bank (BUS) was partof this system since it was time for a new charter to be put inplace. Internal improvements such as roads and canals were put into place which would bring the nation together.Protective tariffs (tax on imported goods) were used to fund internal improvements and help the economy. This system was important because it allowed US citizens to makeprogress and have pride in the country, it also eventually ledto the “Era of Good Feelings” since there was an increase in economic growth.
Jackson Era1828 Third increase of “Tariff of Abominations”1832 Jackson vetoes Bank of the US’s Charter1836 Specie Cicular- Jackson tried to stop inflation- required people to pay government lands with specie= gold and silver caused banks to run out of specie1837 Panic of 1837
Antebellum Years Economy was mostly exporting goods Labor was indentured servants and slavery
Big Business1860 – 1906 Rise of Big Business 1859 Oil Drilling technique created ( Cars 50 years later) 1862 Homestead Act 1867-70s Grange (Patrons of Husbandry) -- farmers against railroads (populist movement) 1869 Transcontinental Railroad1870-1890s Bonanza Farms 1880 Bessemer process established 1887 Huge iron and coal deposits found in Minnesota 1893 Panic of 1893 1896 Debate over Gold Standard 1900 Carnegie Steel biggest company in America 1901 US Steel buys out Carnegie steel (Holding Companies form)
Andrew Carnegie I.D.Andrew Carnegie was a Scottish immigrantwho created one of the biggest businessesduring the turn of the 19th Century. He wasthe first to use the strategies of vertical and horizontal integration. Carnegie was important because he was the first of thebig business leaders and was America’s first “rags to riches” story.
Mill Girl Letter to Boston NewspaperS- Lowell Factory working conditions for the girlsO- Lowell, MA in November of 1844 (Boston Newspaper)A This letter is directed to members in the MA community.P- To inform the public of the tough treatment of the younggirls who work 16 hour days and within a 24 day time periodonly make $14. 52 and they are punished if they don’t gettheir work done. There wages keep getting cut and they workharder every day.S-The author is a worker at the factory who is losing hope inher job because they have to pay for food and board whilewages are low and prices and work days continue to gethigher/longer. She is overworked. She is writing for all theworkers at the factory.
WWI Labor Issues 1919- First Red Scare 1919- Year of Strikes Boston Police Strike Steel Mill Strike Coal Miners’ Strike IWW (International workers of the world- accused of being communists) Labor Movement of Loft Appeal because of connects of communism
Roaring 20s (Coolidge Era) Laissez- fair because of WWI Standard of Living increase but extreme income gap
Crash Black Tuesday- stock market crash (panic) Suicide Rates triple in 1929 S – Notice bottom right, “Billions lost” and “Panic” in the title; these two phrases perfectly reflect Black Tuesday.
Great Depression Hoovers Econ Policy- “Too little, Too late” Sad and Poor S-The Great Depression not only put the US economy into a depression but people fell into depression because there were not jobs available. People had to move out of their homes and into the street.
FDR and New Deal ABC soup Economy FDIC SEC- securities and exchange commission Labor Wagner Act NLRB Fair Standards Act Social Security Act of 1905
WWII and Coming out of Great Depression 1940-1945- Government takes over economy OPA NWLB WPB
Post WWII Economy 1946- Unemployment Rises (Normalizes) Inflation Skyrockets Because of fragility during the war, people wanted to spend $ Taft Hartley Act (Anti- Labor Act)
Taft- Hartley Act The Taft-Hartley act was proposed by Senator Robert Taft and Representative Fred Hartley in 1947 to amend theWagner Act of 1935 as well as nullifying parts of the Federal Anti-Junction Act of 1932. The Taft- Hartley act was originally vetoed by President Truman but was passed by congress, the act was a labor demobilization effort by congress, the Act further empowered the National LaborRelations Board, limited the union’s ability to strike, allowed the federal court to enforce collective bargaining, permitted states to pass right to work laws, and bannedclosed shop unions. The Taft-Hartley Act was significant not just because it severely restricted unions but because the Taft Hartley Act shifted the balance of power away fromunions and once again back to big business owners similar to the start of the Gilded Age.
50s Laissez- Fair Automania- American obsession with cars, lots more cars and roads, pollution rises Rise of the Suburbs
LBJ 64-66-LBJ’s Great Society (led to decrease poverty but increased national debt) Space Program- increased defense system and focused on education
Nixon/Ford (1969-1974) Slagflation (67-73)- high unemployment combined with high inflation OPEC Embargo (73- 74)- sent inflation sky high 74 trade resumes, prices quadruple Nixonopened up trades again with China which led to US products being made in China and 3rd world countries
Carter(77-81)/ Reagan Carter Admin- second OPEC price spike- incomplete embargo Inflation rose to double digits Reagan Admin.- Reaganomics- trickle- down theory, taxes cuts, budget cuts, increase defeciet spending
Discuss the economic and political reasonsfor the establishment of unions after the CivilWar.Although the economy was prosperous afterthe Civil War, conflicting views between bigbusiness owners and laborers caused theformation of unions, such as the Knights ofLabor and the American Federation ofLabor, due to the decreasing wages, whilean increase in the cost of living, and a largerprofit margin of the businesses.
Outline 1. Decrease in wages a. Mass production b. Poverty of Population (Jungle) c. Unskilled v. Skilled labor 2. Increase in Cost of Living a. Pullman Strike I. Due to increase in rent II. Cost of food went up b. Population density increase ->Supply/demand imbalance I. First arrived in the Jungle 3. Larger profit margin a. Mass production -> Cheaper Product b. Business profit increase while worker wage decrease unhappy labor
Cause and Effect Cause: British continued taxing goods that the colonist bought and needed (helped the British economy) Effect: The Revolutionary War Cause: Eli Whitney used interchangeable parts in factory assembly lines Effect: Mass production and better American economy because exports could be shipped more frequently
Cause and Effect The Pullman strike was caused by a decrease in wages while the price of housing was maintained at the same rate. The Pullman Strike was important because it was one of the first national strikes and affected about two thirds of the United States. By the end of the strike many strikers were without jobs and were living in worse conditions than before and George Pullman, owner of the Pullman Company, lost an estimated $5 million dollars. Slavery was caused by the need for a cheap labor force in the new colonies and lasted until the Civil War and was officially ended in 1865 when the 13th amendment abolished slavery all throughout the nation. Slavery affected the economy because it provided a cheap work force which in turn lowered the prices of goods, but slavery was one of the main causes in the Civil War.
Cause and Effect WWII is often credited with ending the Great Depression; and it did bring unemployment to a record low. However, WWII was also responsible for the slump of the 60s and 70s. Due to war damages, European countries no longer had a high demand for American goods. This led to the high unemployment rates of the 60s and 70s. Cause Effect WWII End of Great Depression Poorer global economy Historians now blame Jackson’s Specie Circular for the Panic of 1837; however, land speculation and bad banking practices were the reason for the Specie Circular. Banking Policy- Underlying Cause Specie Circular- Perceived Cause Panic of 1837- Ultimate Effect Irresponsible speculation- underlying Cause