Labor History
The world of work
and economy is a dynamic one. Labor has had a very long and interesting in the United States
and the rest of the world. The history of labor describes the history of
organized labor, and more generally the history of the working group. Pressures
that have defined the nature as well as power of organized labor include
evolution and power of the employers, efforts by the workers, the private
organizations to restrict or control unions and the labor law. As a result of
the pressures, organized labor unions emerged to intervene on behalf of workers.
Labor has evolved through different historical periods, each influencing the
other. From the period that capitalism developed up-to-date, there have been
various events and people who have influenced labor and the economy in the United States,
as well as the rest of the world (Epping,
2009). This paper follows these events and individuals that have influenced the
world of work and economy in the 21st century, since the development
of capitalism.
Capitalism
This is an
economic system which in its contemporary form can be traced to the 16th
to 18th centuries. This is the period that is generally referred to
as mercantilism. This period is also known as the age of discovery and was
marked by exploitation by overseas traders mostly from Europe.
This system was based on trade for profit. Some of the scholars believe that
this was the genesis of capitalism, while others argue that capitalism
developed later. For instance, Karl Polanyi, claimed that “mercantilism, with its
entire tendency toward commercialization, never attacked the safeguards which
protected [the] two basic elements of production—labor and land—from becoming
the elements of commerce”; thus mercantilist attitudes towards economic
regulation were closer to feudalist attitudes, “they disagreed only on the
methods of regulation” (Polanyi, 1944: 87). Additionally, he stated that the
hallmark of this economic system of the development of generalized markets for
“fictitious commodities”, as he refers to land, labor and money. It is
generally argued that capitalism, as a purposeful economic system, came up
incrementally in Europe from the 19th
century. This is regardless the argument that proto-capitalist movements were
present in the ancient world as well as in the initial elements of merchant
capitalism that developed ay the time of Late Middle Ages. Capitalism came to
be dominant in the West after the demise of feudalism. This system of economy
with time spread all through Europe. In the 19th
and 20th centuries, the system main means of industrialization. This
took place almost throughout the world (Polanyi, 1944).
This system is
characterized by privately owned means of production and operations that are
aimed at profits. This is normally evidence in the competitive markets, which
characterizes the economy today. Though there is no consensus as to whether
capitalism should be termed as a historical category, it is an historical event
that influenced the present-day labor and economy. There is an agreement that
privately owned means of production, development of products and services for
trade at a profit in a market, and prices and wages are the characteristics of
this kind of economy. Differentia specifica for capitalism was given by Karl Marx: “People sell their
labouring-power to a buyer, not to satisfy the personal needs of the buyer, but
to augment the buyer's capital” (Marx,
1954: 678). There are scholars who
define it as an economic system where all the factors of production are in
private ownership. Others define it as a system where most of the means of
production are privately owned. Private ownership in this economic system
entails the right of the owner to control the property. This is in terms of how
the property is used, whether to rent or sell it and the right to the income
that is gotten from the property. A mixed economy is a kind of economic system
that depends on private property ownership and market relations but with a
considerable level of government intervention (Berg and Hudson, 1992).
Different perspectives that have been taken in the analysis of
capitalism are what have had a great influence in the current labor and
economy. Economists normally argue that in a capitalist economy, the government
does not have any control over market as well as on property rights. This is the
kind that is referred to as laissez faire. Majority of the political economists
argue that private property, wage labor, power relations and class are what
make capitalism a distinct historical formation. This is the basis of the
general argument that capitalism supports economic development. The degree to
which various markets are free and the rules that define private property are
on the basis of the policy and politics of an individual state or nation. Many
nations are referred to as mixed economies. It is evident that in the 21st
century economy, capitalism is the dominant economic model (Epping,
2009).
The industrial revolution
In the 19th
century, there was the industrial revolution that generated a rapid development
in industries and manufacturing abilities. The industrial revolution started in
the US
then it spread in the other parts of the world. The industrial revolution is
the major turning point in the history of labor. It did not only influence
labor, but almost every other aspect of human life in some way. The development
in technology made workers to migrate from agricultural work to work in
factories, mines as well as other hard labor (Beck and
Roger, 1999). Majority in the working class who moved to work in
factories and other industries faced poor working conditions. Such conditions
are still experienced by some people in the working class even in the 21st
century. Some of the poor working conditions that are experienced by these
people are long hours, low pay and unhealthy working conditions among others. There
were many men and children who had to find employment, and were generally paid
lower than men. As there were limited opportunities for learning, many children
were required to work. Even where the productivity of the children and adults
were comparable, the employers would always pay the children less than the
adults (Berg and Hudson, 1992).
The industrial
revolution saw the development of a middle class that was occupied by the
industrialists and business men. This class triumphed over the landed class of
gentry and nobility. The working class found increased job opportunities in the
factories and new mills. Development of factories also led to the development
of the cities. This is because the working class would migrate into these
cities as they searched for employment. This is best illustrated by the mills
and the related industries that developed in Manchester that were given then nickname,
“Cottonopolis.” This is believed to be the first industrial city in the world. Housing
conditions for the middle class were better than those for the working class. Poor
people, who comprised the majority for the working class, occupied very small
houses that were in the cramped streets. Living in these kinds of facilities
was hard. Not all of the workers lived in these kinds of conditions. The
industrial revolution led to the development of a class of professionals such
as doctors and lawyers (Greenhouse,
2008).
Some of the
industrialists such as Robert Owen tried to better the living conditions for
his workers. He is known as one of the pioneer reformers and is well known for
his efforts in enhancing the working and living conditions for the workers at
the New Lenark Mills. Robert Owen is also considered as one of the major
supporters of early socialist movement. Josiah Wedgwood and Matthew Boulton
also used in the industrial system and are known among the earliest
industrialists. Though there were some of the industrialists who provided
better living conditions for their workers, majority did not. They continued to
overwork them while paying them very low wages. This aspect has persisted even
in the 21st century labor and economy. There is still the class of
the wealth and business owners who are exploiting the workers. This is
especially common with multinationals that are developed and grow as a result
of exploitation of labor in the developing nations. There are very many
companies that are developed in the poorer nations where they thrive on cheap
labor and sweatshops. In such cases, the poor remain poor and living in terrible
conditions. This kind of system emanates from the industrial revolution and
persists even today (Greenhouse,
2008).
Labor unions
It was as a result
of the injustices that were faced by the working class that labor movements
were developed. Introduction of labor unions is another notable event that has
influenced the world of work and the economy of the 21st century. They
are legally identified representatives of workers in various industries. Labor
unions started developing in the 1870s and 1880s. The industrial revolution has
concentrated labor into factories, mills and mines. This facilitated the amalgamation
or labor unions to lobby for the interests of the workers. Labor unions were
developed at the time as a means of lobbying for better rights and working
conditions for the workers. With the industrial revolution, the employment
bargaining power was totally in the hands of the employers. This is what
resulted in underpayment and mistreat of majority of the workers. For instance,
in the united states labor unions started with the large-scale integration,
with the Knights of Labor developing into a huge force in the world of labor
and work. A notable figure behind this development was Samuel Gompers who led the
American Federation of Labor up to 1924. The Railroad Brotherhoods was another labor
union in the country separate from the American Federation of Labor. This labor
union developed national networks towards the end of the 19th
century. The Wagner Act of 1935 caused a rejuvenation of the labor movement. An
amalgamation into the American Federation of Labor–Congress of Industrial
Organizations (AFL-CIO) became possible following the purging of communists in
the CIO in 1946–1948 (Dollars and Sense, Ness, Offner and Sturr, 2009).
One way that the
unions push for better conditions for their members is by organizing strikes,
common in employee relations in many countries even today. This was and is
still used as a bargaining tool for better working conditions. It was also a
tool that was used by the unions in negotiations between management and labor.
Though there is a difference in today’s strikes and those that took place back
then, they continue to be used as a tool for negotiations. Back then, the
strikes were chaotic and violent. In the present-day labor strikes are normally
peaceful protests. Majority of the strikes were painful situations for both the
workers and the employers. As a result of the strong bargaining power of the
workers through the unions, they were fought by the employers as well as their
supporters in the government, a trend that is common even today. For instance,
the Taft-Hartley Act of 1947 was passed as a deliberate and conservative measure
to weaken the unions (Dollars and Sense, Ness, Offner and Sturr, 2009).
Highly publicized accounts of fraud in the Teamstars as well as other unions in
the country also affected the image of the union movement in the 1950s. Labor
unions became the strength of the New Deal Coalition as well as Modern Liberalism
in the US.
Power and membership of the unions peaked again around 1970. However,
membership in the private sector unions declined, while membership of the
unions in the public sector continued to grow steadily into the 2010s. Richard
Trumka is one of the most famous union leaders in the United States (Epping,
2009).
Currently labor
unions in the country belong to one of the larger umbrella bodies AFL-CIO or
the Change to Win Federation. The Change to Win Federation split from the American
Federation of Labor–Congress of Industrial Organizations in 2005-2006. Nevertheless, the role of these unions still
remains as were when the idea of unions was developed back in the 19th
century. They advocate policies and laws that are favorable to workers in the US and Canada. They also have an active
role in politics supporting the Democratic Party, though not exclusively the
case. The American Federation of Labor–Congress of Industrial Organizations is
particularly concerned with international business and economic issues (Greenhouse,
2008).
Modern Liberalism in the US
Modern American liberalism in the United
States is a kind of liberalism that emanated from the progressive ideologies
like “Theodore Roosevelt's New Nationalism, Woodrow Wilson's New Freedom,
Franklin D. Roosevelt's New Deal, John F. Kennedy's New Frontier, and Lyndon
Johnson's Great Society” (Alterman, 2008:14). Modern Liberalism unites social liberalism and progressivism. It
supports a welfare state as well as a mixed economy. Some of the liberal causes
in the country include “voting rights for African Americans, abortion rights
for women, gay rights and government entitlements such as education and health
care.” A major role has been played by the Keynesian economic theory in the
economic ideology of the United
States liberals. This is based on the
argument that the government has a role in the management of macro-economy, to
deal with the problem of unemployment, to keep inflation in check and ensure
the growth of the economy. According to John F. Kennedy a liberal is a person:
“… who looks ahead and not behind, someone who welcomes new ideas without rigid
reactions, someone who cares about the welfare of the people — their health,
their housing, their schools, their jobs, their civil rights, and their civil
liberties — someone who believes we can break through the stalemate and
suspicions that grip us in our policies abroad, if that is what they mean by a
'Liberal', then I’m proud to say I’m a 'Liberal'” (Alterman, 2008: 32).
Modern liberals in
the country support relative equality advocated for by organizations that fight
against economic inequality. They are also strong supporters of democracy, the
rule of law and civil rights. They refer to the widespread development that was
achieved under a mixed economy in the period since the Second World War. They
are convinced that liberty is possible when there is access to basics such as
education, healthcare, and opportunities that are accessible to every person.
They also advocate for environmental protection. Majority of the Americans
support liberal ideologies (Dollars and Sense, Ness, Offner and Sturr, 2009).
Summary
Capitalism is an
economic system that is characterized by privately owned means of production
and operations that are aimed at profits. In this kind of system there is free
market and competition. This is because of the profit element of the economic
system. This is a kind of system that supports class. The owners of the means
of production belong to a different class from the working class. The latter
are the providers of labor for the owners of the means of production. They earn
wages in exchange for their labor. This is what characterizes work and economy
in the current century. Scholars have argued that capitalism is economic system
that encouraged industrialization. It contributed to and advanced the industrial
revolution. In the 19th century, there was the industrial revolution
that generated a rapid development in industries and manufacturing abilities.
The development in factories largely depended on labor from the working class
and trading in the products to generate profits. The working class was
exploited by the owners of the means of production, that is, the property
owners and was given meager wages in return. This is also evident in the
current economic system, especially in the global market where the owners of
the means of production are free to manufacture and sell their products in any
part of the world. The injustices showed by these owners of the means of
production during the industrial revolution led to the development of labor or
trade unions. The trade unions were developed to advocate for the rights of the
working class and one of the negotiating tools that were used was strike. Such
means are still used in the current economic system to lobby for the rights of
the workers. Labor unions were the backbone in Modern Liberalism in the US. All
these are events in labor history that have influence the world of work and
economy in the 21st century.
References:
Alterman, E. (2008). Why we're
liberals: a political handbook for post-Bush America, New
York: Viking Adult p. 32.
Beck B.
& Roger (1999). World History: Patterns of Interaction. Evanston, Illinois:
McDougal
Littell.
Berg,
M. & Hudson, P. (1992). Rehabilitating the Industrial Revolution. The
Economic History
Review (The Economic History Review, 45 (1): 24–50.
Dollars and Sense, Ness, I., Offner, A. & Sturr, C. (2009). Real World Labor: A Reader in
Economics,
Politics, and Social Policy,
Economic Affairs Bureau Inc. / Dollars and Sense.
Epping,
B. C. (2009). The 21st Century Economy--A Beginner's Guide. Rothbury NSW: Vintage
Greenhouse,
S. (2008). The Big Squeeze:
Tough Times for the American Worker, New
York:
Knopf.
Marx, K. (1954). Capital, Moscow: Progress
Publishers p580.
Polanyi, K. (1944). The Great Transformation. Boston: Beacon Press. p87
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