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The consequences of the new deal by Roosevelt
Roosevelt's new deal policy and its impact on the American economy and people
Roosevelt's new deal policy and its impact on the American economy and people
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Recommended: The consequences of the new deal by Roosevelt
“Two world wars [along with Roosevelt’s] “New Deal” had indeed, made government big.” (Moody, 2007, p. 114) Government became “big” because of its controlling interest in business and labor. The reason for this interest is that government was dealing with a failed economy and had two world wars to contend with. These wars required a continual supply of food and supplies to be produced. In order to guarantee supplies to be free of interruption, it required government gaining control over every major industry and labor in order to keep harmony. Along with this harmony, it became instrumental in creating the steady supply of profits for businesses. It also helped in producing wage equality and social services for workers. With government control over businesses, unions began to build strength. By the 1950’s, government control over business and labor was relinquished. Unions found they had emerged with more members than anytime in U.S. history. However what went unnoticed was the empire of diversified investments businesses had built with their profits, and the power they were about to impose. With this in mind, unions should have realized this would become the start of a steady downward spiral for labor. Next come the 1960’s and 1970’s bringing with it yet another war as well as producing drastic changes in the political arena which resulted in “economic stagnation.” Some of the other factors that helped in contributing to economic stagnation was “the cyclical end of the long post war boom . . . competition from other Capitalist states like West Germany and Japan, [as well as the] domestic class struggle that put pressure on corporate profits.” (Fletcher & Gapasin, 2008, p.41) With all these changes happe... ... middle of paper ... ...to develop an innovative strategy locally and internationally to counter-act this “phenomenon.” Unions must courageously and aggressively continue the fight against neoliberalism in order to regain control. If not, Unions must face the fact, unions extinction will become the inevitable. Works Cited Collins English Dictionary. (2003). Neoliberalism. Retrieved February 22, 2011 from http://www. thefreedictionary.com. Fletcher, B., & Gapasin, F. (2008). Solidarity Divided: the crisis in organized labor and a new path toward social justice. Berkeley & Los Angeles: University of California Press. MacEwan, A. (2001). Real World Macro: Twenty-fifth Edition. Boston: Economic Affairs Bulletin. Moody, K. (2007). U.S. Labor in Trouble and Transition. London: Verso. The New Oxford American Dictionary. (2011) Retrieved March 22, 2011 by Amazon Kindle.
To conclude this analysis on the basis of the labor’s extensive history, Sloane & Witney (2010) propose, “it is entirely possible that labor’s remarkable staying power has been because of the simple fact that to many workers, from the nineteenth century to the present, there really has been no acceptable substitute for collective bargaining as a means of maintaining and improving employment conditions” (p.80). In the end, it is important to anticipate unions and employers presently work together to find solutions that will enhance collective bargaining strategies and practices to serve the interest of both parties.
From the Civil War to the end of the Great Depression the United States economy went through many levels of economic, political, and social success and failure. Without the government stepping in to make regulations the country would have never been able to climb out of the plague of the Depression under Individualist means.
Modern democratic ideas were sprouting in America, especially within the organized labor movement from 1875 to 1900. During this period, blue-collar industrial Americans sought to abate their plight through the formal use of collective bargaining and the voice of the masses; seeking to use their strength in numbers against the pocket-heavy trusts. America’s rise in Unions can be traced back to 1792, when workers in Philadelphia formed America’s first union which instituted the avant garde method collective bargaining. It is because of these grass roots that America’s organized labor has continued to grow to this day, however not unchallenged. The challenges unions face today stem directly from the challenges faced in 1875. The organized labor movement from 1875 to 1900 is to blame for the problems unions face today as early labor unions crucified themselves politically, alienated themselves socially and failed to increase the socio-economic position of the worker, and in many cases only succeeded in worsening such positions.
David Brody argues that the rise of contractual or collective bargaining relationships during the post WWII era formalized the relationship between employers and unions, but simultaneously began to put a break on shop floor activism. Explain Brody’s argument and, where relevant, incorporate Weber’s theory of bureaucracy.
Throughout the history of the United States of America the continuation of misfortunes for the workforce has aggravated people to their apex, eventually leading to the development of labor unions.
Rosenfeld, J. 2010. Little Labor: How Union Decline is Changing American Landscape. Pathways: A Magazine on Poverty, Inequality and Social Policy.
Beginning in the late 1700’s and growing rapidly even today, labor unions form the backbone for the American workforce and continue to fight for the common interests of workers around the country. As we look at the history of these unions, we see powerful individuals such as Terrence Powderly, Samuel Gompers, and Eugene Debs rise up as leaders in a newfound movement that protected the rights of the common worker and ensured better wages, more reasonable hours, and safer working conditions for those people (History). The rise of these labor unions also warranted new legislation that would protect against child labor in factories and give health benefits to workers who were either retired or injured, but everyone was not on board with the idea of foundations working to protect the interests of the common worker. Conflict with their industries lead to many strikes across the country in the coal, steel, and railroad industries, and several of these would ultimately end up leading to bloodshed. However, the existence of labor unions in the United States and their influence on their respective industries still resonates today, and many of our modern ideals that we have today carry over from what these labor unions fought for during through the Industrial Revolution.
Out of some of the most turbulent times in history have come the greatest ages of success and prosperity. The 1920’s and 1950’s are two eras that exemplify the spirit of triumph and wealth. In both decades, a nation thrilled by the victorious conclusion of war and the return of their loved ones from war entered into an age of capitalism and materialism, bolstering the economy and with it national pride. Some of the features most common to the 20’s and 50’s were consumerism and the accompanying optimistic mindset, the extent to which new ideas entered society, and discrimination in terms of both sexism and racism. On the heels of war, new technology caused a decrease in prices of goods in the 1920’s and in the 1950’s the GI Bill increased income.
The New Deal sought out to create a more progressive country through government growth, but resulted in a huge divide between liberals and conservatives. Prior to the New Deal, conservatives had already begun losing power within the government, allowing the Democratic Party to gain control and a favoring by the American people (Postwar 284). With the Great Depression, came social tensions, economic instability, and many other issues that had to be solved for America’s wellbeing. The New Deal created a strong central government, providing the American people aid, interfering with businesses and the economy, allowing the federal government to handle issues they were never entrusted with before. The strong, emerging central government worried conservatives, who supported a weak federal government with little interaction, and resulted in distinct party divisions (285). By allotting the federal government more political control during the early twentieth century, the government now can reign over state governments and affairs. Today many conservatives are still opponents to the strong federal government, finding issues with its involvement in local affairs, whether that be educational involvement through common core or business involvement through labor unions (Diamond 2; Weber 1). While the New Deal formed a divide between
The Industrial Revolution that took place after the Civil War made for a more economically sound country. American workers, however, were becoming more and more dependent upon their wages; a fear of unemployment also stemmed from this. Workers didn’t share in the benefits that their employers reaped. In a chart representing the hours and wages of industrial workers, from 1875 to 1891, it shows that even though their wages were subtly increasing, their 10-hour work day remained the same (Doc. A). Factories were headed by large corporations; this, in turn, meant that new machines lessened the amount of workers in certain fields. As a result of these unsuitable conditions, labor unions were formed. The challenges that these unions faced weren’t easy. If the workers involved in organized labor got too far out of line, these corporations could get federal authorities involved. Moreover, these companies could enforce “ironclad oaths” upon their employees. In a Western Union Telegraph Company employee contract, in 1883, it states that the employee will not be affiliated with any societies or organizations (Doc. E). Despite such setbacks, by 1872 there were over 32 national unions.
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
The President criticized the large corporations for “keeping prices artificially high and failing to increase workers’ purchasing power”(Liberty 863). Franklin D. Roosevelt realized large corporations who gained monopolies were gaining immense influence on matters concerning government and the daily lives of American citizens. The first New Deal reforms were introduced, not to dismantle large industries but to control them in such a manner that they could never challenge the democratic government. Large corporations took advantage of the liberty given to them prior to the crash by exploiting the profits in payoffs or bribes. The businesses gained influence in government by funding election campaigns of tainted politicians who would in return be blinded by the corruption spread by the untouchable corporations to expand their profit margins.
Domhoff discusses the prevalence of labor unions in the New Deal era. In fact, by 1945, with the help of the liberal-labor alliances, union membership had increased five-fold to fifteen million in that past decade (pg. 172). However, after 1945, the liberal-labor alliances never saw a victory against corporate conservatives. Because of the corporate world’s domination of policy implementation, politicians rules time and again against labor unions because it works in corporate America’s favor. Labor unions serve as many working class Americans’ avenue into the political sphere; denying them a right to unionize is not only a fundamental violation of free speech but also morally and ethically wrong. Overall, Domhoff’s critique of wealthy politicians (primarily Republicans) is merited considering he argues empirically with statistics supporting extremely skewed voting trends against unions. Additionally, Domhoff’s argument exudes sympathy toward those less fortunate; I share Domhoff’s sentiment that is imperative we promote equality amongst classes, one way in which we should do so is through advocacy of labor
Flanagan, R. J. (2005). Has Management Strangled U.S. Unions? Journal of Labor Research, 26(1), 33-63.
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...