Monopolies and Exploitation of Workers Research Paper

Business Leaders

At the beginning of the 20^th century, the majority of large industries were controlled by millionaire families, such as the Rockefellers, the Carnegies, and the Vanderbilts. These families were able to develop monopolies that allowed them to benefit from eliminating smaller competitors and remaining on top of the market. Evidently, this turned most of these millionaire families into “shrewd businessmen” who exploited other people’s labor to attain personal objectives (Surdam, 2020). The increasing prevalence of corruption, racial prejudices, and inappropriate employee treatment was hideous and put employers’ exploitation trends on display. The lack of responsibility later turned some of the millionaire families into “robber barons” due to their unprincipled willingness to earn more money. From extremely low payments to child labor, these market leaders would side with any given strategy allowing them to maximize profits (Mitchell, 2020). Thus, factory workers were not treated as humans since there was no proper labor rights movement at the moment.

Pullman Strike: Exploitation of Workers Explained

The Pullman strike occurred due to the workers’ willingness to fight for increased wages and improved working conditions. Hundreds of thousands of employees were dissatisfied with how the management treated them. The strike became so aggressive that federal troops had to be sent in order to break it up and arrest the leaders of the movement (German, 2022). The primary reason for the employees to go on a strike was a staggering decline in working conditions paired with an unchanging wage that was not enough to cover lifestyle expenses and rent payments. Such inappropriate actions by the management have led to almost 40 people being killed during the strike. The Pullman factory scenario is a textbook example of workplace exploitation (Papke, 2019). Consistent efforts exerted by strikers allowed them to generate reasonable change and contribute to the development of the socialist movement across the US. The nationwide effect of the Pullman strike was also fundamental for an improved understanding of how employees could fight for their rights.

American Working Condition Reforms

A thorough discussion on American reforms in the field of working conditions has to begin with the transformation of the structure of local workplaces. It means that the legislative amendments released throughout the 20^th century created new jobs for multiple populations while also affecting the existing working conditions (Page & Gilens, 2020). Owing to the reviewed legislation, the government was able to remove child labor from the map and prohibit it effectively. It allowed children to get an education and find jobs that resonated with their skillsets. There were numerous movements that reduced the prevalence of gender-based inequities and allowed more women to find high-paying jobs. During the second half of the 20^th century, an increasing number of workplaces began moving toward environments where racial discrimination would not be tolerated (Rahman & Thelen, 2019). Each of these reforms has made the US workplace safer than before, making it possible for employers to unite efforts with workers on the way to transforming labor legislation.

Federal Regulations of Monopolies

The primary reason why the federal government engages in monopoly regulation is the need to prevent excessive pricing strategies from overpowering the market. If there were no federal policies on monopoly, larger companies would be able to outrun the competitive equilibrium and set prices that are above it. According to Feldman et al. (2021), such initiatives damage consumer welfare and lead to long-term allocative inefficiency. The existence of monopolies enforces the deployment of federal policies because, otherwise, service quality would deteriorate in the absence of reasonable alternatives. The increasing risk of monopsony power represents another reason why federal policies are deployed in an attempt to hold back monopolistic behaviors. For instance, profit margins can be squeezed by monopolist companies to strengthen their already dominant position (Christophers, 2018). Even though there are chances that the organization is a natural monopoly, the abuse of such power should be prevented nonetheless. Hence, federal policies on monopolistic companies encourage competition and highlight the government’s role in supporting the local market.

Presidents’ Role in Launching Workplace Reforms

Theodore Roosevelt was a progressive president with the most comprehensive agenda in terms of labor legislation and worker support. During the coal miner strikes across Pennsylvania, West Virginia, and Ohio, President Roosevelt took the time to pick the correct approach to people and industries to avoid the latter from complete shutdowns (Rohmiller, 2019). The main requirements established by the strikers included an eight-hour working day and a 20% increase in wages. Even though President Roosevelt largely disliked aggressive labor union activities, he was the first-ever American president to support a seemingly radical initiative involving the deployment of a closed union shop. He did not stop there and became encouraging union representatives to accept arbitration. Even though some of the mine owners were incensed by Roosevelt’s decision, a compromise settlement was achieved (Berfield, 2020). The recognition of unions was postponed, but an eight-hour working day for firemen and engineers was attained together with a 10% increase in wages. President Roosevelt also ensured that workers would have the opportunity to submit their grievances to resolve workplace issues.

References

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Christophers, B. (2018). Financialisation as monopoly profit: The case of US banking. Antipode, 50(4), 864-890. Web.

Feldman, M., Guy, F., & Iammarino, S. (2021). Regional income disparities, monopoly and finance.Cambridge Journal of Regions, Economy and Society, 14(1), 25-49. Web.

German, L. (2022). Interview with Catherine Liu. Journal of Class & Culture, 1(1), 97-104. Web.

Mitchell, M. (2020). Just the status quo?The Journal of the Gilded Age and Progressive Era, 19(2), 305-313. Web.

Page, B. I., & Gilens, M. (2020). Democracy in America? University of Chicago Press.

Papke, D. R. (2019). The Pullman case: The clash of labor and capital in industrial America. University Press of Kansas.

Rahman, K. S., & Thelen, K. (2019). The rise of the platform business model and the transformation of twenty-first-century capitalism.Politics & Society, 47(2), 177-204. Web.

Rohmiller, A. (2019). Flight to the top of the world: The adventures of Walter Wellman by David L. Bristow. Ohio History, 126(2), 97-98. Web.

Surdam, D. G. (2020). John D. Rockefeller and Standard Oil. In Business Ethics from the 19th Century to Today (pp. 159-176). Palgrave Macmillan. Web.