The Gilded AgeOr was it? The negative side…

Legislation

At first, government stayed out of business◦Laissez-Faire had them “hands off” and

looking the other way◦Wealth and power had some

government officials benefiting from the success of the monopolies

Legislation:Interstate Commerce Act (1887)

◦Situation: RR’s were

charging small companies more to ship short distances than large companies to ship long distance

What would you do?

LegislationInterstate Commerce Act (1887)

◦State passed laws to stop this Problem: Supreme Court ruled this

Unconstitutional Why? Because interstate commerce (biz happening over state lines) is regulated by the US Congress per the Constitution

◦US Congress passed Interstate Commerce Act to prohibit unfair pricing across state lines Who made sure they followed the law?

Interstate Commerce Commission

Legislation:Sherman Anti-Trust Act (1890)

Situation◦Large corporations

are forcing small companies out of business or buying them

◦Reformers called for government to step and stop the unfair practice

What would you do?

Legislation:Sherman Anti-Trust Act (1890)

Sherman Anti-Trust Act◦Stops monopolies

from unfair practices that prevented fair competition

Significance?◦Changed how

Congress is looked at big business and its abuses

Labor - SituationLong hours – average 10-14 hours per dayWages – extremely lowEmployees – whoever could be hired for

the least moneyConditions – extremely dangerousThe work – boring and repetitiveChildren – worked in mills and mines, did

dangerous work no one else was small enough for (1/5 under 15 in 1910 worked)

Job security – None! You could be fired for any reason, any time

LaborReformsUnions – groups formed by some workers to

act together◦ Held strikes and protests◦ Carnegie used immigrant workers or shut

down his plants rather than negotiate

LaborReforms

Knights of Labor – Terrence Powderly (founder)◦Single national union◦United skilled and unskilled laborers◦Demands

8 hour work day Higher wages Safety codes No child labor Equal pay for women

◦Results Dissolved – too loosely organized & skilled laborers

resented being grouped with unskilled laborers

Labor ReformsAmerican Federation of Labor (AFL) –

Samuel Gompers (founder)◦Unions of people with similar interests

(skilled workers)◦All the unions joined in a federation

Demands◦8 hour work day◦Higher wages◦Better conditions◦Closed shops (places where only union

members could work)

Labor Reforms

Now… Let’s think about the two unions…How you ask? Why, with a thinking map, of course! We need to compare/contrast the unions…What map should we use?A circle map! Don’t use just 2 circles, this is just an example.

LaborThe GovernmentBusiness leaders had political

influence◦Saw worker demands as greedy

Concern was to protect the economy not the people◦Sherman Anti-Trust Act was used to

rule unions a “restraint of trade”◦Troops were used to put down strikes

LaborThe Government

Laissez Faire◦ Supported by the people◦ People feared higher prices◦ Haymarket Affair of 1886

Worker striking in Haymarket Square in Chicago

Labor leaders blamed when bomb exploded 7 policemen killed – 67 others wounded