Summary
Highlights
The Pullman Strike of 1894 saw workers strike and boycott trains carrying Pullman cars after their wages were drastically cut. The federal government, under President Grover Cleveland, intervened to break the strike by deploying US troops, citing the disruption of US mail delivery. This demonstrated the government's tendency to side with corporations against labor, even using military force to suppress strikes.
Industrialization in the Gilded Age led to a massive expansion of the workforce, with the industrial workforce tripling between 1865 and 1898. This growth was fueled by rural farmers migrating to cities due to the commercialization of agriculture, immigrants from Europe and Asia, and a significant increase in women and children entering the workforce. Women were paid roughly 25% less than men for the same work, while nearly 2 million children under 16 worked in various dangerous industries, often for even lower wages than women.
While real wages for industrial workers rose by about 20% by the 1880s, the wealth gap between the richest and poorest Americans grew rapidly. By 1890, 90% of working Americans earned an average of $500 annually, while the wealthiest 1% controlled a third of the nation's wealth. This led to conspicuous consumption among the wealthy and burgeoning middle class, who bought expensive goods to display their status, exemplified by structures like the Biltmore House and the rise of mail-order catalogs.
The growing disparity and worker discontent led to the formation of labor unions. Industrialists, believing their interests aligned with their workers and that their success justified their decisions, often refused to negotiate with unions. They were hypocritical in banding together to eliminate competition but deeming worker collectives immoral.
The Knights of Labor, one of the most significant unions, was founded on the premise that worker and capitalist interests were not the same. By 1885, it had over a million diverse members, advocating for an 8-hour workday, the abolition of child labor, and higher wages. However, the Haymarket Riot of 1886, where a bomb exploded during a worker protest, caused a major setback. Industrialists blamed the Knights of Labor, portraying unions as violent and dangerous, leading to a precipitous decline in membership.