WHAT ELEMENTS FOLLOW EMPLOYMENT, LABOR AND WAGES?

WHAT ELEMENTS FOLLOW EMPLOYMENT, LABOR AND WAGES?
http://www.tcm.com/mediaroom/index/?o_cid=mediaroomlink&cid=712877

THE HISTORIC STRUGGLE BETWEEN WORKERS AND EMPLOYEES:
COLONIAL TIMES THROUGH THE 1930S

• 1778- Printers in New York joined together to demand higher wages. This was the first attempt for organization or labor.



• At the time, most unions were skilled workers with strong bargaining power.



• Until 1820, most of the workforce was made up of farmers, small business owners, and the self employed.



• This was until the massive immigration that occurred with new immigration.



• This new “supply” of workers threatened unions.



• Public opinion was also against unions, as the viewed union members as troublemakers, and individuals believed they could bargain for themselves one on one.



• Civil War led to higher prices and a greater demand for goods and services. Manufacturing expanded while farm population declined.



• Working conditions were difficult, with cultural and linguistic differences between immigrants and American-born workers.
  

TYPES OF UNIONS:
CRAFT UNION/TRADE UNION
PERFORM SAME KIND OF WORK

INDUSTRIAL UNION
PERFORM DIFFERENT KINDS OF WORK

UNION ACTIVITIES
•STRIKE- WORK STOPPAGE DESIGNED TO MAKE EMPLOYERS MEET UNION DEMANDS.
•PICKET- DEMONSTRATE OR MARCH BEFORE A PLACE OF BUSINESS TO PROTEST A COMPANY’S ACTIONS.
•BOYCOTT- REFUSAL TO BUY PRODUCTS FROM AND EMPLOYER OR COMPANY

EMPLOYER RESISTANCE
•LOCKOUT- REFUSAL TO LET EMPLOYEES WORK UNTIL DEMANDS ARE MET.
•COMPANY UNIONS-UNIONS ORGANIZED, SUPPORTED OR RUN BY UNIONS.

THE LUDLOW MASSACRE
The Ludlow Massacre A lot more than 2,000 miles separated the Rockefeller estate from Southern Colorado when on Monday April 20, 1914, the first shot was fired at Ludlow. One of history's most dramatic confrontations between capital and labor — the so-called Ludlow massacre — took place at the mines of the Rockefeller-owned Colorado Fuel and Iron Company (CF&I).The face-off raged for fourteen hours, during which the miners' tent colony was pelted with machine gun fire and ultimately torched by the state militia. A number of people were killed, among them two women and eleven children who suffocated in a pit they had dug under their tent.
The deaths were blamed on John D. Rockefeller Jr. For years, he would struggle to redress the situation - and strengthen the Rockefeller social conscience in the process.

http://www.youtube.com/watch?v=U6kuvBnNNUsU6kuvBnNNUs

COURT ATTITUDE:

• UNFAVORABLE


• CONSIDERED CONSPIRACIES AGAINST BUSINESS AND WERE PROSECUTED


• SHERMAN ANTI-TRUST ACT, CONSIDERED AN ACT TO CURB MONOPOLIES, WAS USED TO KEEP LABOR IN LINE.
  
• CLAYTON ANTI-TRUST ACT- EXEMPTED PROSECUTION.
  

• GREAT DEPRESSION DEEPLY AFFECTED LABOR AS THE GOVERNMENT PASSED LAWS THAT SUPPORTED IT FOR THE FIRST TIME.


• NORRIS-LAGUARDIA ACT- PREVENTED FEDERAL COURTS FROM ISSUING RULINGS AGAINST UNIONS ENGAGED IN PEACEFUL STRIKES, PICKETING, OR BOYCOTTS. FORCED COMPANIES TO NEGOTIATE DIRECTLY WITH UNIONS.


• NATIONAL LABOR RELATIONS BOARD- UNIONS’ RIGHT TO COLLECTIVE BARGAINING. CREATED NATIONAL LABOR RELATIONS BOARD TO POLICE UNFAIR LABOR PRACTICES.


• FAIR LABOR STANDARDS ACT- APPLIED TO BUSINESSES THAT ENGAGE IN INTERSTATES COMMERCE AND SET THE FIRST MINIMUM WAGE. ESTABLISHED TIME AND A HALF, AND A FORTY HOUR WORK WEEK, PROHIBITED OPPRESSIVE CHILD LABOR.


• SHIFT POST WORLD WAR II FEELINGS DUE TO COMMUNIST FEAR- CREATION OF “RIGHT TO WORK LAWS” WHICH MADE IT ILLEGAL TO REQUIRE A WORKER TO JOIN A UNION. IF A STATE DOES NOT HAVE A RIGHT TO WORK LAW, A WORKER MAY BE REQUIRED TO JOIN A UNION, IF NOT THEY CAN DECIDE FOR THEMSELVES.


• LABOR-MANAGEMENT REPORTING AND DISCLOSURE ACT- REQUIRED UNIONS TO FILE REGULAR FINANCIAL REPORTS.

AFL-CIO

•ORIGINALLY AFL CONSISTED AS AN ORGANIZATION OF CRAFT OR TRADE UNIONS.
•CIO WAS SEPARATE ORIGINALLY AND SET UP UNIONS IN INDUSTRIES THAT THE AFL DID NOT.
•JOINED TOGETHER IN 1955.

• INDEPENDENT UNIONS- UNIONS THAT DO NOT BELONG TO MAJOR LABOR ORGANIZATIONS.


• CLOSED SHOP-WORKERS MUST JOIN UNION BEFORE THEY ARE HIRED. RULED ILLEGAL UNDER TAFT-HARTLEY ACT DUE TO INTERSTATE COMMERCE.


• UNION SHOP- WORKERS DO NOT HAVE TO BELONG TO THE UNION TO BE HIRED, BUT MUST JOIN SOON AFTER TO REMAIN A MEMBER.


• MODIFIED UNION SHOP- WORKERS DO NOT HAVE TO BELONG TO A UNION TO BE HIRED AND CANNOT BE MADE TO JOIN THE UNION TO KEEP THEIR JOBS, HOWEVER, IF THEY VOLUNTARILY JOIN THE UNION THEY MUST REMAIN MEMBERS AS LONG AS THEY HOLD THEIR JOBS.


• AGENCY SHOPS- DOES NOT REQUIRE A WORKER TO JOIN A UNION AS A CONDITION TO GET A JOB OR KEEP A JOB. IT DOES REQUIRE THE WORKER TO PAY UNION DUES.


• CIVILIAN LABOR FORCE- MEN AND WOMEN WHO ARE 16 YEARS OLD AND OVER WHO ARE EITHER WORKING OR ACTIVELY LOOKING FOR A JOB.
  
  WAGE DETERMINATION:


• WAGE RATE-STANDARD AMOUNT OF PAY GIVEN FOR WORK PERFORMED AND CAN DIFFER FROM ONE OCCUPATION TO THE OTHER.

NON-COMPETING CATEGORIES OF LABOR:

UNSKILLED
•NO SPECIAL TRAINING AND SKILLS
•WORK WITH HANDS
SEMI-SKILLED
•ENOUGH MECHANICAL SKILLS TO OPERATE MACHINES FOR WHICH THEY NEED A MINIMUM AMOUNT OF TRAINING. (BASIC)
SKILLED
•OPERATE COMPLEX EQUIPMENT AND PERFORM MOST OF THEIR TASKS WITH LITTLE SUPERVISION. HIGHER INVESTMENT IN EDUCATION, KNOWLEDGE AND TRAINING.
PROFESSIONAL
•HIGHEST LEVEL OF KNOWLEDGE BASED TRAINING AND MANAGERIAL SKILLS.

MARKET THEORY OF WAGE DETERMINATION:

• LOW DEMAND = LOW PAY


• HIGH DEMAND = HIGH PAY


• EACH MARKET INTERSECTION WOULD LEAD TO THE EQUILIBRIUM RATE- THE WAGE THAT LEAVES NEITHER A SURPLUS NOR A SHORTAGE IN THE LABOR MARKET.

THEORY OF NEGOTIATED WAGES:

• POWER OF UNIONS- THEORY STATES THAT BARGAINING STRENGTH OF ORGANIZED LABOR IS A FACTOR THAT HELPS TO DETERMINE WAGES.


• SENIORITY- LENGTH OF TIME SOMEONE HAS BEEN ON THE JOB.


• SIGNALING THEORY- EMPLOYERS ARE WILLING TO PAY MORE TO PEOPLE WITH CERTIFICATES, DEGREES, AND OTHER INDICATORS THAT “SIGNAL” SUPERIOR KNOWLEDGE OR ABILITY.


• INJUNCTION- A COURT ORDER NOT TO ACT.


• SEIZURE- A TEMPORARY TAKEOVER OF OPERATIONS WHILE THE GOVERNMENT NEGOTIATES WITH A UNION.


• COULD HAVE PRESIDENTIAL INTERVENTION.
  


• COLLECTIVE BARGAINING- PROCESS OF NEGOTIATION BETWEEN THE UNION AND MANAGEMENT REPRESENTATIVES OVER PAY, BENEFITS, AND JOB-RELATED MATTERS.


• GRIEVANCE PROCEDURES- PROVISION IN A LABOR CONTRACT THAT OUTLINES HOW FUTURE DISPUTES AND DISAGREEMENTS WILL BE RESOLVED.


• MEDIATION- PROCESS OF RESOLVING A DISPUTE BY BRINGING IN A NEUTRAL THIRD PARTY.


• ARBITRATION/ BINDING ARBITRATION- AGREEMENT BY TWO PARTIES TO PLACE A DISPUTE BEFORE A THIRD PARTY FOR BINDING SETTLEMENT.


• FACT-FINDING- AGREEMENT BETWEEN UNION AND MANAGEMENT TO HAVE A NEUTRAL THIRD PARTY COLLECT FACTS ABOUT A DISPUTE AND NON-BINDING RECOMMENDATIONS.
  

Mr. Jeff Harris-----Economics-----History of the Stock Market

Stock Market History

The history of stock market trading in the United States can be traced back to over 200 years ago. Historically, the colonial government decided to finance the war by selling bonds, government notes promising to pay out at profit at a later date. Around the same time private banks began to raise money by issuing stocks, or shares of the company to raise their own money. This was a new market, and a new form of investing money, and a great scheme for the rich to get richer. A little further on the history timeline, more specifically in 1792, a meeting of twenty four large merchants resulted into a creation of a market known as the New York Stock Exchange(NYSE). At the meeting, the merchants agreed to meet daily on Wall Street to daily trade stocks and bonds.
Further in history, in the mid-1800s, United States was experiencing rapid growth. Companies needed funds to assist in expansion required to meet the new demand. Companies also realized that investors would be interested in buying stock, partial ownership in the company. History has shown that stocks have facilitated the expansion of the companies and the great potential of the recently founded stock market was becoming increasingly apparent to both the investors and the companies.

By 1900, millions of dollars worth of stocks were traded on the street market. In 1921, after twenty years of street trading, the stock market moved indoors.
History brought us the Industrial Revolution, which also played a role in changing the face of the stock market. New form of investing began to emerge when people started to realize that profits could be made by re-selling the stock to others who saw value in a company. This was the beginning of the secondary market, known also as the speculators market. This market was more volatile than before, because it was now fueled by highly subjective speculation about the company’s future.

This was the pretext for appearance of such stock market giants as NYSE. History books tell us that the reason the NYSE is so highly regarded among stock markets was primarily because they only trade in the very large and well-established companies. It acted as a more stable investment alternative, for people interested in throwing their capital into the stock market arena. The smaller companies making up the stock market formed into what eventually became the American Stock Exchange (AMEX). Contrary to its 80-year old history, today the NYSE, AMEX, NASDAQ and hundreds of other exchange markets make a significant contribution to the national and global economy.

The growth in the number of market participants led the government to decide that more regulation of the stock market was needed to protect those investing in stock. History was made in 1934, when following the Great Crash, Congress passed the Securities and Exchange Act. This act formed the Securities and Exchange Commission (SEC), which, through the rules set out by the act and succeeding amendments, regulates American stock market trading with the help of the exchanges. It also includes overseeing the requirements for a company to issue stock shares to the public and ensures that the company offers relevant information to potential investors. The SEC also oversees the daily actions of market exchanges and how they trade the securities offered.

Although historically, investing in stocks was a “hobby” for the rich, an average person too soon came to realize the value of the investing in stocks vs. traditional assets like land or a house.

What are FIVE strategies or techniques used for buying profitable stocks (“Playing the Market”) ?

1. INVEST [“BUY AND HOLD”]
• Purchase stocks of companies with strong “fundamentals”
• Invest in BLUE CHIPS with a long history of impressive stock performance
• Harvard Business School advises to invest in 5-7 solid companies and not to sell for twenty or more years
• S & P 500 has returned an average return of 10% over the past seventy years

2. BUY STOCK OF COMPANIES YOU KNOW
• Do you see products/services being consumed by friends, family, people of certain companies ? New companies ?
• Stories: Tommy Hilfiger, Starbucks, AOL, Ugg Boots, Cheesecake Factory

3. TECHNICAL ANALYSIS
Use charts, graphs, research, and statistics to judge when a stock will make a move up or down (*see handout)

4. INVEST IN DIVIDEND PAYING STOCKS
Purchase stocks of companies that pay a dividend or profit every three months (ranges 1%-15%)

5. SPECULATE ON COMPANIES
• “Buy & Sell” method of profiting from the stock market
• Searching for higher risk, but more growth potential companies

* What is Day Trading ?




What is a stock?

A stock represent a share in the ownership of a company. If you own a company's stock, then you are a owner, or shareholder, of the company. A stock represents a claim on the company's assets and profits. A stock is also known as equity.

The ownership percent, of a company that you own is calculated by dividing the number of shares a person owns buy the number of shares of stock outstanding.

For example:

1000 shares owned
10,000 shares outstanding

= 10% ownership.


Ownership of stock is represented by a stock certificate. A stock certificate represents your ownership of the company. These days, when you buy stock of a company, you usually do not get the actual stock certificates any more. Instead, your ownership is tracked electronically, making it easier to buy and sell shares.

So, now that you have stock and ownership of a company, what can you do? Not really very much. You will benefit when the price of the stock goes up, or lose if the price goes down. As an part-owner of the company, you are given the right to vote for company's board of directors.

Another way you may benefit is if the company pays dividends. Dividends represent a percent of the company's profit, paid to the shareholders.

Buying stock can be risky, since while the price of the stock may go up, it may also go down. If the company goes bankrupt, then you could potentially lose all the money you invested in the stock. However, that is what investing is all about. Taking risks, in the hope of making money on your investment, with no guarantee that you will make money.


Before investing in stocks, you will need to understand some basic tools. One tool is the stock market table.

The stock market tables give you basic information and price history for stocks. You can use it to see how stocks you own or are interested in owning are performing, how their prices are changing, and how they have performed in the past. Reading a stock market table is simple once you understand how to do it.

THE HARRIS 17
Stock Terms To Know


IPO/ ”Go Public” -A company's first issue of shares to the general public.

Dividend- The portion of the issuer's equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date.

Common Stock- Securities that represent part ownership in a company and generally carry voting privileges. Common shareholders may be paid dividends, but only after preferred shareholders are paid. Common shareholders are last in line after creditors, debt holders and preferred shareholders to claim any of a company's assets in the event of liquidation.

Preferred Stock- A class of share capital that entitles the owner to a fixed dividend ahead of the issuer's common shares and to a stated dollar value per share in the event of liquidation. It usually does not have voting rights, unless a stated number of dividends have been omitted.

Capital Gain-Profit or loss resulting from the sale of certain assets classified under the federal income tax legislation as capital assets. This includes stocks and other investments such as investment property.

Bond-Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time.

Bull vs. Bear-A market in which stock prices are rising versus A market in which stock prices are falling.

Volume-The total number of shares traded on one side of the transaction.

PE Ratio-A common stock's last closing market price per share divided by the latest reported 12-month earnings per share. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at.

Short Selling-The selling of a security that the seller does not own (naked or uncovered short) or has borrowed (covered short). Short selling is a trading strategy. Short sellers assume the risk that they will be able to buy the stock at a lower price, cover the outstanding short, and realize a profit from the difference.

Dow 30 (DJIA)- An average made up of 30 actively traded stocks. The DJIA is calculated by adding the prices of each of the 30 stocks and dividing by a divisor. The DJIA is one of the most widely quoted stock market averages in the media.

S&P 500- is a value-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States.

Insider Trading (SEC)- There are two types of insider trading. The first type occurs when insiders trade in the stock of their company. Insiders must report these transactions to the appropriate securities commissions. The other type of insider trading is when anyone trades securities based on material information that is not public knowledge. This type of insider trading is illegal.

Options (“Put” vs. “Call”)- The right, but not the obligation, to buy or sell certain securities at a specified price within a specified time. A put option gives the holder the right to sell the security, and a call option gives the holder the right to buy the security.

Old Economy vs. New Economy- A term describing the old blue chip industries which enjoyed fabulous growth during the early parts of the century. These companies are usually very traditional in their ways of doing business versus the newer high-growth industries or business sectors, such as biotechnology, information technology, and the Internet; also, the effect of these industries on the economy

Blue Chips-Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.

Spread (“Bid”/”Ask”) -The difference between the bid and the ask prices of a stock.

Mr. Jeff Harris-----Economics-----Stock Market Challenge

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Economics/ Mr. Harris Stock Market Investment Project
$100,000
STOCK MARKET CHALLENGE

Congratulations!
You have been left $100,000 by your long, long, long, long, long, long lost Uncle Chester, who unfortunately recently passed away. However, it seems that Uncle Chester left several stipulations for you to be able to inherit this money.

The regulations are as follows:
-You must invest the entire gift in the stock market
-You must purchase at least 5 different stocks, but not more than 7
-YOU MUST INVEST AT LEAST 15% OF THE MONEY IN EACH STOCK OWNED

-You must purchase the stock on _____________________

-You must sell (liquidate the account) on __________________

-You must keep a weekly account for all the activities of the stock (Friday’s closing price)
-You may “play” the market by buying or selling your stocks. However, you must always maintain a 5 stock minimum and always have your $100,000 fully invested.
-In addition, there is a $100 transaction fee for every stock trade made after your first five!
-Any stock trades (buys or sells) made after the original purchase day must be immediately handed in to Mr. Harris (on the day of the purchase) and signed.
-When you buy you will use the day’s high as the purchase price
-When you sell you will use the day’s low for the selling price

Stipulations for the Project
-You must present your findings to Mr. Harris, the lawyer who is handling the will of your Uncle Chester, on ____________________
-You are only entitled to your inheritance if you turn in the project/complete the stock portfolio presentation

NO LATE REPORTS OR PRESENTATIONS WILL BE ACCEPTED!
Your Project must contain the following elements:
1) An Initial Investment Statement
2) The Tracking Log
3) The Tracking Graph
4) The Final Report – Including the GAIN/LOSS Statement
5) A TYPED Business Letter which summarizes the account’s activity
6) Presentation of findings to Mr. Harris (and the class)
- Visual Aids (Graphs, Charts, etc. on poster/PowerPoint presentation)
- Proper Stock Vocabulary/Lingo – Name Your Portfolio
- Proper Attire (Business Suits)/Vocal Tone/Eye Contact
- Reasons for stock purchases/History of each company

1) The Initial Investment Statement 10 Points]
(Must follow this format)

CASH RESERVES = $ ______________
($100,000 minus total of “Total Cost” Column)
*** YOU MUST MAKE A COPY OF THIS SHEET AFTER FILLING IT OUT FOR YOUR RECORDS ***
[You will hand one in to Mr. Harris, and keep one for yourself]

CLICK HERE FOR The Initial Investment Statement Sheet

SAMPLE STOCK PORTFOLIO:
THE HARRIS FUND

CASH RESERVES = $ 889
($ 100,000 minus total of “Total Cost” Column)

2) THE TRACKING LOG [10 Points]

CASH RESERVES = $___________________

CLICK HERE FOR THE TRACKING LOG

3) THE TRACKING GRAPH [10 Points]

Click here for Tracking Graph
http://www.mrharris101.com/economics/TRACKING%20GRAPH.doc

4) THE FINAL REPORT [20 Points]

Click here for Final Report

TOTAL OUTCOME FOR THE PORTFOLIO:
(Including Cash Reserves & Minus $100 Transaction Costs)

$________________________



5) TYPED BUSINESS LETTER: [20 Points]

You must also write a conclusive statement which summarizes the portfolio’s activities and your final results in a business letter format to the lawyer (me).

Mr. Jeff Harris
380 Old Town Road
East Setauket, NY 11790

6) PORTFOLIO PRESENTATION

[30 Points]
(= ____/100 Points x .3)

EVALUATION FORM

Accurate Information ______/ 20 Points

Visual Aids ______/ 20 Points

Stock Vocabulary/Lingo ______/ 20 Points

History/Reasons ______/ 20 Points

Proper Clothing/Attire ______/ 10 Points

Eye Contact & Vocal Tone ______/ 10 Points
Total ______/100 Points
STOCK MARKET INVESTMENT PROJECT FINAL EVALUATION


INITIAL INVESTMENT STATEMENT ______/10 POINTS



THE TRACKING LOG ______/10 POINTS



THE TRACKING GRAPH ______/10 POINTS



THE FINAL REPORT ______/20 POINTS

(INCLUDING THE GAIN/LOSS STATEMENT)



TYPED BUSINESS LETTER ______/20 POINTS
(PORTFOLIO SUMMARY)



PORTFOLIO PRESENTATION ______/30 POINTS




FINAL GRADE _______/100 POINTS

PORTFOLIO PRESENTATION


EVALUATION FORM

Accurate Information ______/ 20 Points

Visual Aids ______/ 20 Points
(PowerPoint, Poster board, transparencies)
Stock Vocabulary/Lingo ______/ 20 Points

History/Reasons ______/ 20 Points
(Research!)
Proper Clothing/Attire ______/ 10 Points

Eye Contact & Vocal Tone ______/ 10 Points


Total ______/100 Points

(= ____/100 Points x .3)


_______/ [30 Points]

$$DOLLAR VAULE OF PORTFOLIO$$
(INCLUDING CASH RESERVES & MINUS $100 TRANSACTION COSTS)
BUY / SELL TRANSACTION FORM


Student Name _______________________

Click here for the Buy/Sell Transaction Report
http://www.mrharris101.com/economics/BUY.doc

*** YOU MUST STAPLE A PRINT OUT OF A STOCK QUOTE FOR THE STOCK
YOU ARE SELLING AND THE STOCK YOU ARE BUYING TO THIS FORM

*** MAKE SURE TO SUBTRACT $100 FROM THE TOTAL AFTER SELLING
YOUR STOCK AND ADD $100 TO THE TOTAL AFTER BUYING NEW STOCK
(THESE ARE YOUR “TRANSACTION FEES” or COMMISSION FOR TRADING STOCK)

*** YOU MUST MAKE COPIES OF ALL OF THESE FORMS FOR YOUR RECORDS

***MAKE A COPY OF YOUR PACKET BEFORE HAND IT IN!!!
SO YOU CAN REFERENCE IT IN YOUR PRESENTATION.

*** DO NOT CONFUSE THE STOCK MARKET PACKET WITH THE STOCK MARKET PRESENTATION.
THESE ARE TWO DIFFERENT THINGS.
STOCK MARKET PACKET: 70% OF YOUR GRADE
STOCK MARKET PRESENTATION: 30% OF YOUR GRADE

IF YOU ARE USING POWERPOINT TO COMPLIMENT YOUR PRESENTATION, PLEASE MAKE SURE IT WORKS. IF YOU ARE USING A JUMP DRIVE, PLEASE CONSIDER EMAILING ME AT jharris1@threevillagecsd.org TO ENSURE IT WORKS!

Progressive Era Overview- Mr. Harris

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Progressive Era Overview

The Progressive Era actually started long before 1900 and continues in many ways to the present time, for American has been in the business of reform from its earliest existence as a nation. Yet the Progressive Era as designated by historians—roughly 1900 to 1916—was a “just in time” phenomenon. Had Progressivism for some reason not gotten off the ground, the country could well have seen far more violence and upheaval than actually happened.

By the end of the 19th Century much of America was a tinderbox. Cities were crowded with millions of immigrants, working conditions were appalling, and corruption darkened politics from the local level to the highest institutions in the land. Some thing had to be done, and it was. Although the progressive reformers did not fix everything, there was little that escaped their fury.

With input from the “muckrakers”—journalists such as Ida Tarbell, Lincoln Steffens and others—and under the leadership of Theodore Roosevelt and many other political and business leaders, the nation began to clean up its act. By 1916 hundreds of national, state and local laws had begun to make the cities cleaner and healthier, the workplace safer, and businessmen more honest and considerate of their workers and customers. Much was done out of what has been called “enlightened self-interest,” which for some meant doing the right thing for the wrong reasons. But whatever the motives of the reformers, progress was made, and not a moment too soon.

http://www.sagehistory.net/progressive/index.html

I. Sources of Progressive Reform
A. Industrialization, with all its increase in productivity and the number of consumer goods, created
1) Unemployment and labor unrest
2) Wasteful use of natural resources
3) Abuses of corporate power
B. Growing cities magnified problems of poverty, disease, crime, and corruption
C. Influx of immigrants and rise of new managerial class upset traditional class alignments
D. Massive depression (1893-1897) convinced many that equal opportunity was out of reach for many Americans.

Who Were the Progressives? - Mr. Harris

The Standard Oil Company

II. Who Were the Progressives?
A. New middle class composed of young professionals

1. Sought to apply principles of professions (medicine, law, business, teaching) to problems of society
2. Strong faith in progress and the ability of educated people to overcome problems
3. Rise in volunteer organizations organized to address issues (American Bar Association, U.S. Chamber of Commerce, National Association for the Advancement of Colored People, National Municipal League, eg.)
4. Mainly urban in residence and orientation

B. Muckraking journalists attacked corruption and scandal with a sense of moral outrage
1. Lincoln Steffens exposed city machines in The Shame of the Cities (1904)
Lincoln Steffens
From The Shame of the Cities

Perhaps the most influential of the muckrakers was Lincoln Steffens. Steffens' articles were published in McClure’s magazine in 1902 and 1903 and then collected in The Shame of the Cities, published in 1904.

Now, the typical American citizen is the business man. The typical business man is a bad citizen; he is busy. If he is a "big business man" and very busy, he does not neglect, he is busy with politics, oh, very busy and very businesslike. I found him buying boodlers in St. Louis, defending grafters in Minneapolis, originating corruption in Pittsburgh, sharing with bosses in Philadelphia, deploring reform in Chicago, and beating good government with corruption funds in New York. He is a self-righteous fraud, this big business man. He is the chief source of corruption, and it were a boon if he would neglect politics. But he is not the business man that neglects politics; that worthy is the good citizen, the typical business man. He too is busy, he is the one that has no use and therefore no time for politics. When his neglect has permitted bad government to go so far that he can be stirred to action, he is unhappy, and he looks around for a cure that shall be quick, so that he may hurry back to the shop.

Naturally, too, when he talks politics, he talks shop. His patent remedy is quack; it is business. "Give us a business man," he says ("like me," he means). "Let him introduce business methods into politics and government; then I shall be left alone to attend to my business." There is hardly an office from United States Senator down to Alderman in any part of the country to which the business man has not been elected; yet politics remains corrupt, government pretty bad, and the selfish citizen has to hold himself in readiness like the old volunteer firemen to rush forth at any hour, in any weather, to prevent the fire; and he goes out sometimes and he puts out the fire (after the damage is done) and he goes back to the shop sighing for the business man in politics. The business man has failed in politics as he has in citizenship. Why? Because politics is business.
That’s what’s the matter with it. That’s what’s the matter with everything,—art , literature, religion, journalism, law, medicine,—they’re all business, and all—as you see them. Make politics a sport, as they do in England, or a profession, as they do in Germany, and we’ll have—well, something else than we have now,—if we want it, which is another question. But don’t try to reform politics with the banker, the lawyer, and the dry-goods merchant, for these are business men and there are two great hindrances to their achievement of reform: one is that they are different from, but no better than, the politicians; the other is that politics is not "their line". …
The commercial spirit is the spirit of profit, not patriotism; of credit, not honor; of individual gain, not national prosperity; of trade and dickering, not principle. "My business is sacred " says the business man in his heart. "Whatever prospers my business, is good; it must be. Whatever hinders it, is wrong; it must be. A bribe is bad, that is, it is a bad thing to take; but it is not so bad to give one, not if it is necessary to my business." "Business is business" is not a political sentiment, but our politician has caught it. He takes essentially the same view of the bribe, only he saves his self-respect by piling all his contempt upon the bribe-giver and he has the great advantage of candor. "It is wrong, maybe," he says, ‘but if a rich merchant can afford to do business with me for the sake of a convenience or to increase his already great wealth, I can afford, for the sake of living, to meet him half way. I make no pretensions to virtue, not even on Sunday."

And as for giving bad government or good, how about the merchant who gives bad goods or good goods, according to the demand? But there is hope, not alone despair, in the commercialism of our politics. If our political leaders are to be always a lot of political merchants, they will supply any demand we may create. All we have to do is to establish a steady demand for good government. The boss has us split up into parties. To him parties are nothing but means to his corrupt ends. He ‘bolts" his parry, but we must not; the bribe-giver changes his party, from one election to another, from one county to another, from one city to another, but the honest voter must not.

Why? Because if the honest voter cared no more for his party than the politician and the grafter, their the honest vote would govern, and that would be bad—for graft. It is idiotic, this devotion to a machine that is used to take our sovereignty from us.

If we would leave parties to the politicians, and would vote not for the party, not even for men, but for the city, and the State, and the nation, we should rule parties, and cities, and States, and nation. If we would vote in mass on the more promising ticket, or, if the two are equally bad, would throw out the party that is in, and wait till the next election and then throw out the other parry that is in—then, I say, the commercial politician would feel a demand for good government and he would supply it. That process would take a generation or more to complete, for the politicians now really do not know what good government is. But it has taken as long to develop bad government, and the politicians know what that is. If it would not "go," they would offer something else, and, if the demand Were steady, they, being so commercial, would "deliver the goods."

Describe the climate and what exactly the article is exposing.

Do you believe the excerpt is legitimate, and explain why?

What did government do to fight this once the public knew?

2. Ida Tarbell exposed Standard Oil Trust abuses
from "The Rise of the Standard Oil Company"
by Ida M. Tarbell
There were at that time some 26 [oil] refineries in the town--some of them very large plants.... To the owners of these refineries, Mr. Rockefeller now went one by one, and explained [his plans]. "You see," he told them, "this scheme is bound to work. It means an absolute control by us of the oil business. There is no chance for anyone outside.... You are to turn over your refinery to my appraisers, and I will give you Standard Oil Company stock or cash, as you prefer, for the value we put upon it. I advise you to take the stock. It will be for your good." Certain refiners objected. They did not want to sell. They did want to keep and manage their [own] business. Mr. Rockefeller was regretful but firm. It was useless to resist, he told the hesitating .... "You can never make more money, in my judgment," said Mr. Rockefeller. "You can't compete with the Standard. We have all the large refineries now. If you refuse to sell, it will end in your being crushed."
[McClure's, December 1902]

Describe the climate and what exactly the article is exposing.

Do you believe the excerpt is legitimate, and explain why?

What did government do to fight this once the public knew?

3. Upton Sinclair's The Jungle (1906) attacked the meat-packing industry
'There would be meat that had tumbled out on the floor, in the dirt and sawdust where the workers had tramped and spit uncounted billions of consumption germs. There would be meat stored in great piles in rooms; and the water from the leaky roofs would drip over it, and thousands of rats would race about on it. It was too dark in these storage places to see well, but a man could run his hand over these piles of meat and sweep off handfuls of the dried dung of rats." (pp. 134-5).

Describe the climate and what exactly the article is exposing.

Do you believe the excerpt is legitimate, and explain why?

What did government do to fight this once the public knew?

Teddy Roosevelt & the Square Deal - Mr. Harris

II. Teddy Roosevelt & the Square Deal
A. Using the power of the presidency (a "bully pulpit") as no president since Lincoln, T.R. loved to lead and to fight those he felt were not acting in America's best interests.

1. Coal Strike--When coal mine owners refused to deal with the union in a 1902 strike, T.R. summonsed them and the head of the mine workers to the White House and threatened to use army troops to keep the mines open. Owners backed down and T.R. was credited with ending the strike
2. Northern Securities Case--T.R. used the Sherman Antitrust Act to attack a railroad monopoly. Supreme Court ordered the company to dissolve.
3 . Added Departments of Labor and Commerce to the Cabinet
4. Pushed through the Hepburn Act (1906), strengthening the Interstate Commerce Commission
5. Urged Congressional approval of the Pure Food and Drug Act (1906), which forbade impure foods and required labeling of ingredients of foods and drugs.

B. Conservation reform added massive areas to the national forests (total of 190 million acres)
1. Transferred forests to the U.S. Forest Service headed by Gifford Pinchot, who insisted that trees be planted as well as harvested
2. Withdrew millions of acres of public land from sale to protect resources
3. Used public land sale revenues to build dams and canal systems

Describe who Roosevelt was.

What was the Square Deal?

What was the effect of the Square Deal? Describe one of these: Northern Securities Case, Hepburn Act (1906), Pure Food and Drug Act (1906), AMERICAN ANTIQUITIES ACT (1906)

City and State Government Reform - Mr. Harris

Senator Robert La Follette

III. City and State Government Reform
A. City government system changed to prevent boss or "machine" rule
1. City commissions replaced mayors and city councils in some areas
2. City managers (nonpolitical professional managers) were hired to run small cities

B. State level reform efforts championed by Robert La Follette of Wisconsin
1. Direct primary to give voters control over candidates
2. Competitive civil service and restrictions on lobbying
3. Many states passed workmen's compensation laws
4. Election reforms to bring direct democracy to voters
a) Initiative--allowed 5% of voters to "initiate" laws in state legislatures
b) Referendum--in some states voters could then pass initiatives into laws
c) Recall--by petition voters could force an official to stand for re-election at any time

1. Describe who Robert La Follette of Wisconsin was, and what was the Wisconsin Plan?

2. Briefly describe why there was a need for “direct elections of Senators?”

3. Explain in your own words: Initiative, Referendum, and Recall.