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Key debate 1: To what extent did improvements in the
economy during the…
Key debate 1: To what extent did improvements in the
economy during the Gilded Age benefit workers and unions?
Introduction
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American economy, with a growth rate of some seven per cent per year.
However, there is more disagreement about the beneficiaries of that growth.
Successes/Improvements
- Wages (particularly for skilled workers) rose dramatically, with an increase of some 60%, despite a rapid rise in the available workforce caused by immigration
- The increase in transport and heavy industry created an increased demand for labour. American heavy industry overtook that of Britain, which had been the worlds leading producer of industrial goods.
- The number of craft-orientated labour unions grew
- Unions such as the Knights of Labour (KOL) saw rapid growth in membership which went from 20,000 in 1881 to 700,000 by 1886 and included both African Americans and women.
- The American Federation of Labour was established in 1886 and was the first successful national labour federation. It sought to link all unions. Some businesses were willing to work with it and establish mechanisms by which businesses and workers could negotiate.
- Some sickness clubs, to which workers contributed so that they had some income if they were ill, were established but compensation was limited.
Failure/No Improvements
- It was a period of increasing inequality and poverty for many in the workforce, with 2% of the population owning 30% of the wealth.
- The wages of unskilled workers were around 30% of those of skilled workers.
- The demand for skilled workers declined because of the increase of mechanisation
- The use of the 'contract system' meant that workers could be laid off during quiet periods.
- Workers had few rights and worked long hours and in dangerous conditions. In 1889 there were 2000 workers killed in accidents
- The violence of strikes, which began with the Haymarket affair in 1886, did much to damage the reputation of KOL and its membership collapsed.
- The slump in the economy at the end of the 1880's weakened the position of workers as there was unemployment, job insecurity and a reduction in wages.
- The workforce was divided between white, skilled workers, who made up most of the unions, and African Americans, but this division was exasperated, by the arrival of new immigrants from Europe and Asia. There few fears that there new arrivals would increase the available workforce and result in a reduction in wages. Unions would not allow either the African Americans or new immigrants to join.
- The governments laissez-faire policy encouraged large corporations and meant that there was no protective legislation for the workforce.
- The courts also supported the employers and issued injunctions to end strikes.