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Big Biz Corp & Labor

Labor Unions Existence of organization shows that there were a lot of unhappy workers.
Laissez-Faire The government should not tell business men what to do.
Labor Government didn't tell business owners what to do. No laws for safety, minimum wage, discrimination.
Monopolies or Trusts When one company dominates an industry and crushes the competition. Today they are illegal.
Robber barons Ran the monopolies
Biggest Monopolies Vanderbilt, Rockefeller, JP Morgan, John Hill. All saw monopolies as a good thing
Reasons why Monopolies were a thing 1. Brought order and stability to the economy; Boom & bustages - economy would do really well & then bust 2. Social Darwinism: economy where only the fittest survive 3. Gospel of Wealth: anticipated by Andrew Carnegie; moral oblig to give money away.
Problems with Monopolies 1. Stifle innovation: no incentive to improve products 2. Eliminate choice: no variety 3. Raise prices: can change whatever they wanted
Middle Class's reaction to Monopolies Exploited by monopolies; by late 1800's started to learn Monopolies were a bad thing
Henry Demarest Lord Wealth against common wealth; proved monopolies hurt the middle class; put pressure on congress
What congress did New conditions for workers. 1. Mass production: mass produce goods in a factory, don't need skilled workers, not as much value. 2. Bad working conditions: no laws protecting workers. 3. Business hostility: don't see their workers as people.
1877 Railroad strike Decided to cut their workers wages so workers went on strike nationwide. Government sent in soldiers to break up strike. 1st national strike and served as a wake up call to the middle class
Knights of Labor founded in 1969 by Terrance Powderly who got credit for it and became famous due to the successful strike against a railroad company. Disappeared by the 1880's.
What went wrong with Knights of Labor 1. Terrence Powderly personality was a deep, poetic kind of guy, wanted to create a perfect world. 2. Powderly lost control of his union, every chapter did its own thing. 3. Companies refused to negotiate with them.
American Federation of Labor Successful. Started as a union for angry workers in 1886 led by Samuel Gompers - who looked like a union leader.
AFL Rules 1. Only accepted skilled workers. 2. High ones and high initiation fees - need resources. 3. A reluctance to go on strike - hard to go on strike, no pay, go on strike as a last resort.
Created by: FaithRaquel2015
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