The reaction against laissez-faire Flashcards
How had attitudes towards laissez-faire changed by the 1880s?
Critics of laissez-faire denounced its materialism, its uncontrolled speculation, its corruption, and its tendency to trample over the ‘little man’.
What aroused this criticism to laissez-faire?
The rising power of the railroads and other big business monopolises. Critics demanded state regulation.
Why were several state governments pushed into passing regulatory legislation?
Due to pressures from small farmers, especially the Granger movement, and by the emerging trade unions representing industrial workers, above all the Knights of Labor.
Describe the outcome of the legislation.
It was rarely effective, and was undermined in 1886 by a conservative judgement by the Supreme Court in favour of the railroad companies.
Describe the federal government stance towards big business.
They did little to disturb the dominance of big business, and Congressmen were widely seen as ‘in the pocket’ of the ‘robber barons’ and open to bribery and corruption.
Where did protests against laissez-faire attract a lot of support from?
From small farmers in the South and West. The Granger movement had gained 850,000 members by 1885 as local Granges were organised.
What did pressure from the Granges result in?
Increased regulation of railroads and firms controlling the storage and distribution of corn and wheat.
What did lobbying the Granger movement result in?
It brought about a favourable Supreme Court ruling against the State of Illinois in 1877, though this was later nullified by a pro-business Supreme Court ruling in 1886.
Describe the protest from the Knights of Labor.
The leader, Terrence Powderly, campaigned hard for the 8-hour day and for other restrictions on employers.
How was the Knights of Labor a prominent force?
By the mid 1880s it had more than 100,000 members.
What was the growing strength of labour unions shown by?
The formation of the American Federation of Labour in 1886.
Which books had considerable influence on political and public opinion against laissez-faire?
- Mark Twain - The Gilded Age - 1874
- Henry George - Progress and Poverty (proposed the abolition of private land ownership, sold 2 million copies) - 1879
Describe Henry Carter Adams’ article for the AEA.
In 1887, he wrote an article entitled The Limits of Laissez-faire.
How did satirists and cartoonists also shape opinion?
Artists such as Thomas Keppler in Puck magazine produced a stream of vivid and hard-hitting cartoons that lampooned the high-and-mighty bosses and caught the popular imagination.
Describe the situation by the late 1880s.
The weight of attacks on the excesses of laissez-faire was beginning to push reluctant politicians to take some action.
