Labor Unions and Laissez Faire Capitalism

If workers are able to earn more money they would be able to buy more products which would grow the economy.

How could the demands of labor unions improve the economy?

Increase the power of the working class so they can improve their conditions.

What is the goal of labor unions?

If government followed laissez faire capitalism, they would not interfere in a labor strike at all.

According to pure laissez faire capitalism what side would government take between labor unions and employers?

Government involvement often favored big businesses when politicians thought it would grow the economy.

Despite the ideas of laissez-faire and social Darwinism, how do government actions favor big business?

A strike can shut down the factory until the employer is forced to give in to worker demands.

What advantage does a strike give the workers over an employer?

Government keeps its "Hands Off" the economy and does not get involved in the competition of business.

What is Laissez Faire?

Group of workers who seek to improve the economic and social well-being of its members through group action.

What is a Labor Union?

All workers refuse to work until their employer agrees to increase their wages and improve their conditions.

What is a Strike?

If a strike interrupted other parts of the economy, government often sent in police of the military to end the strike.

When labor strikes interfered with the economy what did government often do?

Labor unions were unable to gain the support of government or the public that they needed to take on the economic power of big businesses.

Why did big businesses have many advantages over labor Unions?

Other parts of the economy were being hurt by the stoppage of railroad traffic by the strike, which made the public put pressure on the government to reopen railroad traffic.

Why did the striking Pullman workers lose the public's support?

It is best to let businesses to operate without rules or laws so they are free to grow their business and our nation's economy without limits.

Why do Laissez Faire Capitalists believe it is best for government to stay out of the economy and business?

When the employer is forced to make one agreement with all workers, the employer can't use competition for jobs by the workers to to drive down wages.

Why do labor unions want to force the employer to agree to one collectively bargained contract?

If the weaker people in society are allowed to fail, only the strongest will survive and the most capable business leaders will run our economy.

Why do social Darwinists believe is best for society to let the weaker workers or businesses fail?

Employers were not breaking the law or disrupting other parts of the economy like labor unions were.

Why does government often take the side of the employers over labor unions?

Striking workers often turned violent and the public called for government to restore law and order.

Why were strikes by workers often unsuccessful in improving their wages and conditions?

Unskilled workers were easily replaced by other workers who were competing for jobs.

Why were unskilled workers unable to demand better wages and conditions from employers?

They believed labor unions would make business unable to make a profit and keep the business open.

Why would businesses want to limit the power of labor unions?

Increasing workers pay could increase costs of production, increase prices for their products, decrease the profit of business and ultimately decrease the number of jobs available.

Why would employers argue that increasing worker's wages would hurt the economy?

Labor unions believed that if worker's wages increased, a middle class would develop, creating more demand for our nation's products.

Why would labor unions argue that increases in workers wages would improve the economy?

They believe that employers had no other reason to improve worker's conditions unless they refused to work.

Why would labor unions want the government to protect worker's right to go on strike?