Big Business and Exploitation of Workers

Big Business and Exploitation of Workers

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Big Business and Exploitation of Workers

Introduction

Large corporations, as well as their exploitation of workers, were well-known themes throughout both the Industrial and Progressive Eras in the late nineteenth century. While this may be true in today's world, it will be examined in further depth later on in this chapter. Both of these topics are connected with one another. Ever since the formation of the United States, someone has been forced to work for little or no compensation and to endure mistreatment while doing the task of someone else. Let's take a look at the realities of the present situation and go back to the time when people first started to care for one another.

Big Business Leaders

The corporate elite of the nineteenth century was distributed across the world. These persons have been referred to as "robber barons" and "captains of industry," to name a few of descriptors for their actions. J.P. Morgan, Henry Ford, John D. Rockefeller, and Andrew Carnegie were among the world's wealthiest people during their respective times. According to Maryville University, these men's net worth is in the hundreds of billions of dollars when current values are taken into consideration. Individuals who are self-centered exist in every society, and then there are others who are sympathetic and altruistic. When J.P. Morgan's business tactics are compared to those of the past "robber barons," they qualify him to be considered one. This one individual was so wealthy that he was able to save the country through the financial crises of 1895 and 1907 (Schröter, 2005). In addition, he played a key role in the formation of General Electric Company. For his part, Morgan came out as arrogant and self-centered. He was unethical in the way he operated his business. He was a member of a trust that controlled the banking industry, according to those who believe he did so, and that money was used to promote a candidate he knew would be popular with the wealthy.

They were all well-known gentlemen who were sensitive and considerate in their own way. John D. Rockefeller, the oil magnate who accumulated a wealth of more than $400 billion and had complete control over the business, was also a generous benefactor. He made a generous donation of more than $500 million. Following him is Henry Ford, the real-life "Captain of Industry." For the manner in which Ford dealt with his staff, he was an excellent employer. He believed that increasing compensation and cutting work hours would increase their productivity. Ford developed a low-income working-class hospital, a school for orphaned boys, and even a farm, among other things. When it came to "robber barons," the Glided Age was strewn with examples of their exploits (Roberts, 2011).

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American Working Conditions

Workers were subjected to tough working conditions at a time when the economy was on the verge of improving. During the time period when Henry Ford paid his employees $5 a day, company owners such as J.P. Morgan paid their employees as low as $1 a day. Morgan's pay were standard, and this particular high income was considered exceptional. The usual was ten to twelve hours each day, six to seven days per week. Despite the fact that its employees were in danger, the company's owners seemed to be unconcerned about their safety. Unfortunately, the Triangle Explosion of 1911 in New York City brought this to the public's attention in a spectacular manner. When the fire broke out at the workplace, around 150 women perished (McEvoy, 1995). The women were locked inside with no means to get out of their situation. Several women were killed when they leapt to their deaths from the ninth floor of the factory in where they worked. Because there were no child labor standards in place, children could work night shifts in factories for wages that were even lower than an adult man’s wage. This was great for Big Business, but it was tremendously bad for the thousands of people who were injured every day.

Government Role in Reforming Working Conditions

Early on in the reform process, the government played a limited role in implementing it. It was up to the persons who were forced to live in such deplorable circumstances and endure such heinous abuse to call for change on their behalf. Implementation of reforms by corrupt authorities required an inordinate amount of time. Workers' demands for higher wages and better working conditions led to the formation of labor unions in response (Kim & Kim, 1997). To ensure that health and safety laws were put in place, progressives campaigned for their implementation. In the aftermath of the 1911 factory fire, legislation was passed to protect workers from being compelled to work in conditions akin to slavery. It wasn't until the 1930s that the minimum wage was created.

Benefits of Government Regulations of Monopolies

Monopolistic firms were subject to little or no government regulation as a result of their dominance in the market. Given their position as the higher authority, they were free to set their own working hours, pay, and working conditions without the need for outside assistance or intervention from anybody else. Because of government engagement in this sector, smaller businesses were allowed to enter the market without being entirely absorbed by larger corporations. However, it seems that these larger firms were unwilling to fight on an equal level with smaller competitors. When it comes to free commerce and competitiveness, there is nothing more American (Chandler et al., 199). The government has taken on this responsibility in order to prevent monopolies from emerging and large corporations from engaging in unfair business practices.

Progressive Presidents

Roosevelt was the appropriate man for the position at a time when the country's working class was ready for a new beginning in America. Following McKinley's resignation, he was elected president, and he was a crucial figure in the establishment of the Progressive Era. Because of its image as a generous benefactor of the people, President Franklin D. Roosevelt's government was called "the square deal" (Guerin et al., 1973). Following months of strike negotiations, the mine owner ultimately agreed to a settlement with the miners. The president supported the workers' cause. The President set out to strengthen corporate governance, consumer protection, and environmental protection, all of which he was able to achieve throughout his administration.

Conclusion

Pain and sadness pervaded the Gilded Age, and there was little reason to be optimistic about the next years. Numerous employees died or were injured as a consequence of their horrible working conditions, and many more were unable to support themselves and their families as a result. People banded together to complete a mission because they were courageous and strong. The establishment of these unions was of more assistance to them than any one individual, even the President, could have done. Having the President on their side did, however, prove to be beneficial in the end. These women, children, and immigrants set the framework for the society in which we live and work today, despite the fact that many of their aims were not realized for many years.

References

Chandler, A. D., Amatori, F., & Hikino, T. (Eds.). (1999). Big business and the wealth of nations. Cambridge University Press.

Guerin, D., Merrill, F., & Merrill, M. (1973). Fascism and big business. Monad Press Book.

Kim, E. M., & Kim, Ŭ. M. (1997). Big business, strong state: collusion and conflict in South Korean development, 1960-1990. Suny Press.

McEvoy, A. F. (1995). The Triangle Shirtwaist Factory Fire of 1911: Social change, industrial accidents, and the evolution of common-sense causality. Law & Social Inquiry, 20(2), 621-651.

Roberts, D. (2011). Fatal invention: How science, politics, and big business re-create race in the twenty-first century. New Press/ORIM.

Schröter, H. G. (2005). Americanization of the European Economy: A compact survey of American economic influence in Europe since the 1800s. Springer Science & Business Media.