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Cause Of Pullman's Economic Depression In The United States

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In the years leading up to 1894, there was severe economic depression in the United States. Many workers were not being paid sufficient amounts to afford the high costs of living. In addition to not being paid enough, many workers were also being overworked and working ridiculous hours. In Chicago, Illinois, the Pullman Palace Car Company was doing both of these things to their workers. They expected their employees to live in the city of Pullman where there was limited options and high prices with little income. This began a nationwide railroad strike on May 11, 1894 led by the American Railway Union. Thousands of workers from 27 different states refused to work. Eugene V. Debs led the Pullman strike and was the head man of the American Railway Union. George M. Pullman was the boss of the Pullman Palace Car Company. The strike pitted the American Railway Union against the Pullman Car Company, along with railroads and the federal government. At this point, violent protests broke out all over the country. …show more content…

Well, the Pullman Car Company began laying off workers and slashing the wages of others. This was all following the great panic of 1893 where many did not know what was happening to the economy and were losing money fast which caused many problems economically. Workers of the Pullman company were so fed up that the company was cutting their wages but did not bother to lower the prices of rent and living in the company's city. These workers decided to ban together and hence the American Railway Union was formed. The group of angry workers unanimously voted to strike against the

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For example, the Pullman Company had a lot of layoffs, wage cuts and made the standards of living plummet. In response to this, the American Railway Union (ARU) and Eugene V. Debs decided to make their supporting members promise not to work on trains that had a Pullman car on them. Although this only started in Chicago it quickly spread to 27 other states and Richard Olney, a lawyer in charge of law enforcement, soon stated that all trains must have a Pullman car and a mail car on them, which made what they strikers were doing illegal. Throughout the Panic and Depression of 1983 and the Pullman Strike, it is clear to see that corporations were once again trying to micromanage the day-to-day life of the workers and decided what was best for them even if it was not. It demonstrates the unfair labor policies and organized labor.

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You touched on a critical point in your forum, as of why workers went on strike. While poverty played a significant role, in 1877, railroad employees experienced a significant pay cut, which sparked the Great Railway Strike, triggering violence and a shutdown of the railways lasting nearly six weeks. Next, the Pullman strike began with railroad owners becoming increasingly wealthier, while none of the profits trickled down to the employees. The labor walk-outs encompassed the substantial divide between social classes. Hence, rich businessmen were increasing their profits, while poor workers often remained stagnate with low wages and company issued paycuts.

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There are several issues labor and business antagonize over. There were tons of families and individuals affected by the downfalls occurring in this era. Many immigrants and workers were badly mistreated and were not really recognized by their hard work. The government gave signals for the rest of the century; there would be no strikes for the white people and blacks would be put back. Immigrants came from Europe and China to make new labor forces; these farmers were unable to purchase new machinery or pay new railroad rates.

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He started this company in Chicago, Illinois, hiring workers in the town to work for him. Following the economic depression in America in 1893, Pullman changed the conditions of these workers. He cut wages, increased working hours, and laid off some workers. On May 11, 1894, several thousands of train workers responded to these conditions, starting an unannounced strike at the Pullman Company in Illinois. During the next couple of months many people died due to the violence that was going on in this strike.

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