Pro-Employee Era in the US

Some History

From the 1600s through the 1800s, settlers to America earned a living by farming, raising livestock and hunting.  They were finally able to own land and be self-supporting. Other families worked on their own boats as fishermen, lumberjacks and

The tradesman were builders, blacksmiths, gunsmiths, silversmiths, saddle makers, wagon makers, carpenters, printers, physicians, lawyers and dentists. They were professionals. There were eventually wealthy plantation owners, bankers and merchants. They were free to be self-supporting until their home countries started to tax and abuse them in the late 1700s.  Employees were slaves, sailors, indentured servants and apprentices.  This was a time when ordinary people were business owners.

In 1806, Commonwealth v Pullis held that unions were criminal conspiracies.  In 1942, Commonwealth v Hunt determined that employees could form unions and could strike.

From the 1850s to the 1900s, millions of Americans moved to cities and took jobs in manufacturing and general labor. The US had a free market economy with little government interference.  The scientific work that was initiated in the 1600s and 1700s had allowed for the development of machines and devices that would have immediate and universal demand.  We developed the steam engine to power trains and cranes, electrical power, the gasoline engine, the telegraph and telephone and equipment for manufacturing, farming and household use. 

Working conditions were dangerous and demanding, but those who left the farm were used to working hard. A few recessions occurred but the industrial revolution was a positive for America. In the 1880s, labor unions were forming to demand higher wages and better working conditions. This created a separation of employees and business owners. Employees would go on strike and business owners would hire replacements. Then employees would attack the replacements and police would attack the employees. Communists were involved in forming these unions. Business owners were mostly brilliant and driven, but many lacked the skills to deal with whiners. 

In 1913, the US federal government unconstitutionally created the Federal Reserve Bank and imposed the income tax and inheritance tax. Business owners were taxed on their total wealth at death. Their companies had to close or take out loans to pay the tax. Owners had to adjust and sold stock to raise capital.  Everybody bought stock. In 1926, pension plans were allowed to be created.

In 1929, the stock market crashed and factories closed.  Jobs were so scarce, employers were bankrupt and investment stopped.  The “Dust Bowl” drought from 1934 to 1937 hit the Great Planes and the Southwest and devastated 150,000 square miles of farmland and ranchland displacing families. Unemployment hit 25% in 1933.  Consumption and GDP dropped to about 75% of what it was in 1929, because 25% of consumers had no money. They survived in poor conditions being fed by relatives, neighbors and kind strangers.  Jobs were scarce and employees were nervous.

The US federal government printed money and hired the unemployed to build infrastructure, hydro-electric dams and other projects during the 1930s.

In 1939, the US began war production to supply the British with fighter planes and quickly added all other war materials for the Allies.  This put American workers back to work from 1939 to 1941.

From 1941 to 1945, women in the US were recruited for war production to replace the men who were going to war. Employee health insurance

In 1945, World War II ended, soldiers came home, got married, had children, bought homes and took jobs in manufacturing and all other occupations.  The US was the largest manufacturing nation standing.  It took Europe and Japan and other war-torn countries several years to restore their manufacturing capabilities.

In the period from 1945 through the 1950s employees were married to the company in the top and aspiring ranks. Employees were happy to be busy, but many managers were not good at treating employees positively.  Unions pension plans

In the 1960s, many companies began to treat employees with more respect.  We worked at making unions unnecessary. Union membership plummeted from over 30% to less than 15%.

In the 1970s, employees saw quality decline, prices double and productivity decrease in union environments.

In the 1980s, employees saw taxes cut and productivity double in non-union environments.

Since 1993, jobs have moved overseas and immigration quadrupled.

Conclusions

Although the period from the 1600s to the late 1700s was hard, I would rate this period very high. The American colonies offered far more opportunity for self-determination than colonists had ever seen.

The period from 1800 to 1900 was another golden age as we tripled our landmass and contributed to the industrial revolution.

The period from 1945 to 1993 was our last golden age as we doubled productivity.

Good eras for employees include times where there were elements of self-determination, opportunity, productivity and invention.

Norb Leahy, Dunwoody GA Tea Party Leader