Essay On Connecting The Present And The Past

In the first half of the 19th Century the working class in the newly industrializing American society suffered many forms of exploitation. The working class of the mid-nineteenth century, with constant oppression by the capitalist and by the division between class, race, and ethnicity, made it difficult to form solidarity. After years of oppression and exploitation by the ruling class, the working class struck back and briefly paralyzed American commerce. The strike, which only lasted a few weeks, was the spark needed to ignite a national revolt by the working class with the most violent labor upheavals of the century.

In William Domhoff’s article, Wealth, Income, and Power, he examines wealth distribution in the United States, specifically financial inequality. He concludes that the wealthiest 10% of the United States effectively owns America, and that this is due in large part to an increase in unequal distribution of wealth between 1983 and 2004. Domhoff also states that the unequal wealth distribution is due in large part to tax cuts for the wealthy and the defeat of labor unions. Most of Domhoff’s information is accurate and includes strong, valid arguments and statements. However, there is room for improvement when identifying the subject of what is causing the inequality.

The Great Railroad Strike of 1877 manifested into the first of a series of labor strikes in the United States and the first general strike of the nation. Working on the railroads, labor workers already had poor working conditions and low wages. However, the Baltimore and Ohio Railroad (B&O) had made its second wage cut in the past eight months; both cuts by ten percent. In response to this, labor workers refused to allow any freight trains to roll in and out of the station until the restoration of their original wages. The railroad strikers included individuals from railroad workers to other labor sympathizers alike. The Great Strike of 1877 succeeded for the labor economy because of the large number of labor supporters, the overpowering of the militia, and the power of initiative from the people.

The Great Railroad strike occurred in 1877 and started in Martinsburg, West Virginia. The original incident was when major railroad companies announced that there would be another wage cut of ten percent, after workers’ wages were already slashed during the financial panic of 1873. This economic downfall caused hundreds of laborers to leave their jobs and go on strike. The word spread to cities across the country that railroad workers were striking causing a domino effect of strikes within other railroad companies as well as other professions. The initial strike led to violence causing the loss of

Occupy Wall Street symbolizes their frustrations through the various occupying demonstrations, signs, and most notably, their slogan: “We are the 99%” representing the growing inequality of the wealthiest 1% of America’s population and the rest of the country’s citizens. The top 1% has more than doubled their income over the last thirty years according to a Congressional Budget Office (CBO) report. In 2007, the richest 1% owned 34.6% of the country’s total wealth. After the Great Recession and economic crisis the amount of the country’s total wealth owned by the 1% grew from 34.6% to 37.1%.

In today’s capitalist economy, where economic transactions and business in general is centered on self-interest, there is a natural tendency for some people to make more than others. That is the basis for the “American Dream,” where people, if they worked hard, could make money proportional to their effort. However, what happens when this natural occurrence grows disproportional in its allocation of wealth within a society? The resulting issue becomes income inequality. Where a small portion of the population, own the majority of the wealth and the majority of the population own only a fraction of what the rich own. This prominent issue has always been the subject of social tension

The Great Railroad strike of 1877 led to many problems this strike, also referred to as the Great Upheaval, which began in July in a town named Martinsburg, West Virginia, the railroad strike ended forty-five days after locals, state militias and federal troops shut it down. The goals of the railroad strike were for a wage increase. The workers of the railroad were not represented by labor unions, which mad the workers angry therefore several cities started to build armories to support their militias to avoid any problems. There were many causes of the strike, one was that the civil war ended and a boom in railroad construction ensued about 55,000 of new tracks being laid between the years 1866 and 1873. In 1873, the Wake of the panic developed between workers and leaders. As immigration from Europe was underway, the railroad jobs were increasing and it became a competition, which enables companies to drive down the wages and lay off their workers. Speculators fed large amounts of money into the railroad industry causing an abnormal growth (en.wikipedia.org).

The end of the Civil War marked a new integration of industry into American society. Following the war, high tariffs were put in place to compensate for the national debt that were created. The increase in tariffs also promoted domestic industries which became more critical in America. A major shift can be seen during this time, known as the Gilded Age, toward a more industrialized society rather than an agricultural one. One major influence toward this industrialized society was the building of the transcontinental railroad which ran from East to West coast. Finished in 1869, the Railroad allowed for more transport which also benefited the rising of big businesses. Regional companies could become national companies and thus changed the way people looked at industrialization. This industrialization affected the working class the most which consisted of the industrial workers and farmers. One would think that the “Gilded Age” would mean prosperity would be felt throughout the economy but the elite 1% of the population had more money than the rest of the population combined. This did not sit well with the working class, especially the industrial workers, who were the ones making the profit for the elites. However, each the farmers and industrial workers had their own way in which they responded to the industrialization of the Gilded Age.

From 1938-1969, in America was in a period called the great compression, a time where the difference between the richest and poorest Americans was very small and economic growth was explosive. Due to past and current economic policies and events, income inequality has exploded in America, which is why in 2015 America had the highest level of wealth inequality in the world at 80.56 gini[1] . In the future this inequality will slow down economic growth, increase debt for middle income Americans, make America less democratic, and reduce economic mobility. This problem, however, does have solutions and this paper will lay out some of the solutions and the effect they will have on the economy, but first I will explain the history of income inequality in the US.

There is no doubt that wealth inequality in America has been escalating quickly; the portion of total income earned by the top one percent has doubled since the beginning of the 1970’s. The wealthy are the main beneficiaries

In late July of 1877, Chicagoans played their part in the first nationwide uprising of workers. On July 16, railroad workers in Martinsburg, West Virginia, walked off the job to protest a 10 percent wage cut leveled by their employer, the Baltimore & Ohio Railroad. Strikes to protest cutbacks in the midst of a period of nationwide economic depression soon spread westward across the country. News of attempts to control boisterous crowds fueled worker protest and sporadic violence.

Furthermore, when analyzing the different classes, and the distributions of wealth and income in the United Sates; for instance, the upper, middle, and lower classes – it is an astronomical amount of wealth that the top 1 percent acquire. It is also noted by Johnson & Rhodes (2015), “that income and wage inequality have risen sharply over the last thirty years” (pg. 228). Equally important to this, is how the average change in income is divided in Americas quintiles and the widening gaps. For example, in Table 5.2, while the lowest fifth quintile increased from $11,128 to $11,361 – a difference of $233.00 from years 2006 to 2012; the highest quintile increased from $289,446 to $319,918 – an exponential increase of $30,472 (pg. 229). With income inequalities at this rate, it is difficult for the majority of the United States to experience upward social mobility. Pursuing this further, in a line stated by Johnson and Rhodes (2015), “The wealthiest Americans can live on the dividends from their investments without having to touch the principle or work for a salary” (pg. 230). From this, it is visible to see how society has compartmentalized different levels of functions to keep a so called balance for the greater

The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.

Capitalism has been the central force behind the growth of the United States’ progressive economy. Within such advanced economic system the chances of economic disparity are significantly high. In fact, over the past three decades there has being a steady increase in unequal wealth distribution among the economic classes. To sustain the current unequal wealth distribution among the classes of the American population, there are numerous factors that influence and shape this trend. For some members of the population it is alarmingly disturbing to know that recent statistics have shown that, “In the US [alone] the wealthiest 1% of its population owns more than the bottom 95 %” (Gutman). As for the difference in economic wealth, it resulted

In the article “Of the 1%, by the 1%, for the 1%” Joseph Stiglitz, a noble prize winning economist, argues that the upper 1% controls about 40% of all wealth in America. This top 1% has taken about a quarter of all income in America, and has seen their income rise about 18% in the past decade. This has made the inequality between classes in the US expand. Eventually, this inequality gap will even hurt the top 1%, because the other 99% will either fight for a bigger piece or just stop working all together. The top 1% can buy anything they need, but their fate realizes on the other 99% to work hard and not fight back. If the 99% stopped working, there would be a simple way to gain back money… that would be to raise taxes on the rich. However, the rich get rich by capital gains, which have a low tax policy. So overall, the upper percent can eventually learn, but a majority of the time it is too little too late.