The Rich Are Loving the Economy — It’s a Different Story for Regular Americans

Infantry, strikers, Pullman Strike
Workers' rights were won with blood, conflict and years of sustained effort. Frederic Remington illustration of US Infantry attacking Pullman strikers with rifle butts and bayonets. Photo credit: Harper’s Weekly / Wikimedia

Here are three indisputable facts: US GDP is up, the stock market is higher than ever, and unemployment is low.

President Donald Trump is quick to remind us of these facts, while largely taking credit:

It’s questionable whether these glowing numbers are attributable to Trump, but nevertheless they are a reality. Is it a cause for celebration? Should American workers be thankful for the economic position the US is in today? Perhaps.

But sometimes saying something that’s true can mask an ugly reality, if the stated truth is not given its proper context, or if other truths are left out.

Here are some other indisputable facts:

.

Just as Trump doesn’t deserve sole credit for some of the more positive developments, he also cannot be blamed for the problems reflected by the statistics above. Some of them have been decades in the making.

They simply show that this is no time for a victory lap, because most Americans are struggling. That last fact about declining union membership has particular relevance, as it happens to coincide with a rising trend of wealth inequality in the US.

In light of that, we’re re-running the following piece from last year (which went viral after Bernie Sanders shared it on Facebook). This reminds us of the true power and potential of organized labor to affect change for the better, even in the face of seemingly insurmountable odds.


In the summer of 1894, some 3,000 railroad workers on Chicago’s South Side went rogue, staging an unauthorized walkout to protest shrinking paychecks.

The ensuing showdown between the American Railway Union (ARU) and the Pullman Company not only gave Americans a much-appreciated day off but also, more importantly, legitimized unionism as the primary means of protecting and advancing worker rights.

The Pullman Strike, as it would come to be called, emerged from one of the country’s most devastating economic crises, the Panic of 1893. Thousands of businesses shut down, and unemployment cracked 20%. To cope with plummeting demand and revenue, the Pullman Company, a premier railroad manufacturer, slashed its workforce by half and worker wages by a quarter, financially crippling its employees and their families under the weight of unsubsidized rents and living expenses.

The ARU, founded by a then-little-known Eugene V. Debs — the towering socialist prophet who went on to inspire the likes of Kurt Vonnegut and Bernie Sanders — supported the workers by recruiting manpower and coordinating organized follow-up walkouts.

From June to August, half a million workers across America joined the boycott, so incapacitating railroad traffic that President Grover Cleveland’s administration sought an injunction against the union — the first in US history — and dispatched troops to end the strike.

The immediate aftermath was not pretty. Although Cleveland, as a peace offering, christened Labor Day a national holiday, wages stayed stagnant, unions suffered significant losses, and Debs went to jail for violating a court injunction.

Even so, the Pullman Strike ushered in an era of widespread unionization, heightened awareness of class and wealth inequality and, subsequently, progressive ideals like a minimum wage and overtime pay.

Americans are still reaping the rewards of unionism today: the gender pay gap has halved since 1980, and in five years time, 17% of the populace will live in a city or state with a $15 minimum wage. Yet as automation continues its assault on the most heavily-unionized industries, the formidable labor movement that has converted ideals into laws is starting to look like the relic of a bygone era. Union membership slumped to an all-time low this year — a dismal 10.7 percent. Anti-collective-bargaining laws have gathered steam in states like Wisconsin, ostensibly as a productivity booster but actually a corporate-backed effort to swat aside annoyances like paid sick days and extended maternity leave.

As this long holiday weekend takes off, it’s important to remember that decades of organized labor protests, not bouts of compassion from white-collar executives, are the reason Americans get to sleep in on Monday morning — and enjoy many other benefits.

Watch the videos below to learn more about the seminal strike that defined the modern labor movement.


Related front page panorama photo credit: Adapted by WhoWhatWhy from Pullman Strike (Harpers Weekly / Wikimedia), ARU logo (American Railway Union / Wikimedia) and Pullman Shield (Oxyman / Wikimedia – CC BY-SA 3.0).


Where else do you see journalism of this quality and value?

Please help us do more. Make a tax-deductible contribution now.

Our Comment Policy

Keep it civilized, keep it relevant, keep it clear, keep it short. Please do not post links or promotional material. We reserve the right to edit and to delete comments where necessary.

print

One response to “The Rich Are Loving the Economy — It’s a Different Story for Regular Americans”

  1. Manqueman says:

    Just like every extractive economy ever.