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Gap between rich and poor grows

Gap between rich and poor grows. New wealthy business class grows 1890, 9% of population controlled 75% of nations wealth Workers want change!. The wealthy dominated government. The rich did not care about worker’s issues The gap between the rich and poor was wide

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Gap between rich and poor grows

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  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 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

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

  10. 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 • Starts in Martinsburg, WV • Strikes quickly spread from city to city • Pittsburgh, federal troops brought in to stop violence

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. Questions • 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.

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