Formation of National Labor Union
The late 19th century saw the emergence of corporations catalyzed by industrial revolution to dominate the economy. An array of factors contributed to this development. One major contributor was the shortage of labor, which necessitated the creation of labor-saving machines. Businesses increased and later expanded into other states. The agricultural sector further sparked exponential growth.
In 1870, farmers powered the economy by supplying corn to be milled into meal and flour. The cattle farmers enabled the slaughter and meatpacking industries to advance. The farming sector was a direct stimulator of the economy. The East and West railroads assisted in the development of associated industries and national expansion of the market. America, at the time, was blessed with cheap power supply sources such as coal in comparison to other countries.
Inventions of the second revolution, such as George Westinghouse’s steam turbine and air brake for a train in 1886, staged the rise of other notable entrepreneurs. An example is John D. Rockefeller, who became a shrewd businessman during this era. His company, Standard Oil, was a force to contend with, having eliminated all competition. Another famous entrepreneur was J. P Morgan, who, unlike Rockefeller, was from a wealthy family. As an investment banker, he amassed his wealth through the buying and selling of shares.
Despite all the prosperity, the gap between the rich and the poor between 1860 and 1900 continued to widen. The need for semiskilled and unskilled labor was on a high. Child labor in the mining fields was also recurrent. The outcome was disorganized protests in 1877. To address social and political reforms, the National Labor Union was formed in 1866 and later split in 1870. Violent events in 1890 led to the rise of other trade unions such as the Amalgamated Association of Iron Steel Workers and the American Railway Union.