Industrial Revolution

Conditions were not satisfactory at the beginning of the industrial revolution. The social

system was not set up to accommodate the massive influx of immigrants. Many who

could not find work were forced with the decision to join the military or turn to begging

and prostitution. For instance, in the Seven Years' War, 1,512 British sailors were killed

in battle while 133,708 died of disease or were missing.

Sadler Report 1832 – anti-capitalist (anti-free market), politically motivated

Michael Sadler, a radical Tory of the British parliament, wanted to shorten the workday

to ten hours. He was sent to investigate the working conditions on factories.

His accounts consisted of “children beaten into deformity, and other conditions of

brutality, degradation, and oppression” which reduced the worker to virtual slavery.

Poverty in 18th century was widespread and horrendous. It’s the main reason that so many

people fled Europe to come to America (the New World). In 17th century England almost

half the entire population subsisted below the poverty level; in other words they earned

less than what it cost to buy bread or some other food to feed themselves.

The reasons for much of this poverty can be attributed to Guilds, slavery, Corn Laws,

Alcohol, Taxes. Corn laws were in juxtaposition to the sale of grain which was on land

owned predominantly by wealthy aristocrats.

1

In the feudal system, serfs owed military service to their lord and were legally tied to the

land owned by a lord who was judge, jury, and executioner. Not unlike today where

people are legally tied to their land by mortgages and government that is increasingly

centralizing power.

A tax on windows in 1696 caused many windows to be boarded up which restricted the

flow of fresh air and sunlight. Perhaps the worst indicator was the death rate of the Irish,

most of whom lived in slums, in the mid 18th century. The average life expectancy was 19

years – whereas the average life expectancy of an American slave was 36 years.

Fuel and clothing were in short supply. Many people starved to death or died from

malnutrition. According to a report in France in1662 “Famine this year has put an end to

over ten thousand families and forced a third of the inhabitants to eat wild plants, some

people ate human flesh.”

The famine of 1696-97 in Finland killed a third of the population.

The Free Market (Economic Individualism)

Men form government to protect themselves from private criminals and they formulate a

Constitution to protect themselves from government. Free market Capitalism requires a

universal ban on the initiation of force. This includes government. If freedom is to be

protected, government must be severely limited.

2

Joseph Addison (English playwright and politician) “There are not more useful members

in a commonwealth than merchants because they create wealth, provide productive

employment, and engage in the peaceful trade which knits mankind together in a mutual

intercourse of good offices.”

Voltaire – “Enter the London stock exchange and you witness a place more respectable

than many a court, for men here of all races and religions harmoniously and without

bigotry engaged in mutually beneficial trade.”

He also praised the reasonableness of business which raised the general standard of living

but also but awarded men offices based on merit, not on birth or religion, and whose

voluntary commercial relations promoted peace.

“Who is more useful, an aristocrat or government official, whose accomplishments

consisted primarily of mastering all the intricacies of courtly ritual or the merchant who

sends ships across the seas and enriches his country?”

British writer Arthur Young “Everything is well done in England, except when it is done

with public money”

The thinkers of the day, the Philosophes, were committed to rationalism which involved

confidence in the reasoning mind and confidence in private judgment as distinguished

from reliance on the dogmatic authority of others. Deism, theory that God created the

world to run in accordance with natural laws that required no further intervention, was

widely held by the Philosophes.

3

The Enlightenment, and the free market, above all stressed the mind, not just physical

labor.

Scottish Enlightenment – precursor to the Industrial Revolution

Voltaire “It is to Scotland that we look for our ideas of civilization”

It was this ideal that man has the capacity to improve his condition that resulted in

improvements in factories and working conditions.

James Watt – commissioned by the Masonic Lodge of Glasgow to make a pipe organ. He

was neither a musician, nor had any formal training in organs, pipe making or music.

However, he researched pipes, organs, and designed the plans and built an organ for

chemist Joseph Black then a larger one for the lodge, entirely by himself.

Black was a professor of chemistry, medicine, and anatomy at the University of Glasgow.

He had been studying the properties of latent heat for years. Watt finally hit upon the idea

of harnessing steam.

Watt’s partner, John Roebuck, was practicing physician, chemist, and inventor who

created the lead-chamber process for manufacturing sulphuric acid, and also owned coal

mines and iron works.

4

James Hutton, a Scottish scientist who was a pioneer of geology, originated the theory of

the evolution of the Earth’s crust, and that the Earth was much older than previously

believed.

John McAdam used small stones and gravel to make travel easier. Over time wagon

wheels and horses hoofs crushed the small stones to make a hard smooth surface, or what

is commonly known as macadam. McAdam later added tar to make tarmacadam or

tarmac.

The Enlightenment and the subsequent Industrial Revolution completely changed

transportation in the 18th century and afterward. Roads in England and Scotland were

horrendous, they were often so muddy when it rained that carriages sank up their axles

and horses up to their stomachs.

John Rennie – Scottish engineer; constructed the Waterloo Bridge, New London Bridge,

among many other projects. Also provided material for the Encyclopedia Britannica.

John Robison also invented the siren, contributed to the Britannica

Thomas Telford – Scottish engineer; “Father of Civil Engineering; noted bridge and canal

builder, which made travel and commerce much more widespread and increased

population, constructed the Ellesmere Canal.

James Brinley – built the Grand Trunk Canal

5

Josiah Wedgewood – created high quality earthenware pottery that was inexpensive so

that the poor could afford it.

Lunar Society of Birmingham

Joseph Priestley – chemist; isolated and described oxygen, ammonia, nitrous oxide, sulfur

dioxide, and carbon monoxide and also wrote the groundbreaking History of Electricity.

John Wilkinson – pioneered the use of cast iron built iron ships and bridges and had a

foundry that built iron machine parts for many uses.

William Hunter made advancements in obstetrics; John Hunter pioneered dentistry

including the names of teeth incisor, bicuspid, molar, etc.

The University of Edinburgh particularly its medical school became a fountainhead of the

Scottish Enlightenment, paved the way for the Industrial Revolution all by using

Newtonian Science.

Richard Trevithick early pioneer of the locomotive

George Stephenson “Father of the Railroad” born poor and had no formal education.

However, he was a brilliant mechanic and had an aptitude for repairing things. He

invented the miner’s safety lamp, and in the 1820’s built a series of locomotives designed

for pulling material such as coal up from mines. This made work far easier for miners.

Stephenson sent his son Robert to school 10 miles away with no public transportation and

no carriages. When Robert would return home from school he would teach his father to

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read and write and together they studied science and technology. They also designed

dozens of advanced steam engines which revolutionized transportation in the 1820s.

Eventually George sent Robert to the University of Edinbergh where he studied

philosophy, mineralogy, and chemistry.

A group of businessmen seeking to connect the cities of Manchester and Liverpool set up

a contest called the “Rainhill Trials”. Stephenson’s locomotive, which weighed less and

consumed less coal, beat out 4 other competitor’s to win the prize. On September 15th

1830 the Manchester Liverpool Railway opened. Robert Stephenson oversaw the

construction of more than 1800 miles of railway in his lifetime.

Industrial Revolution

Thomas Newcomen – built a steam powered water pump used for pumping water out of

mines in 1712

John Kay in 1733 invented the flying shuttle which improves looms and enabled weavers

to weave faster

James Hargreaves created the spinning jenny in the 1760s by which a worker could spin

multiple threads – eventually up to 80 – at once

In 1765 500,000 pounds of cotton had been spun by hand in all of England- by 1784

more than 12 million pounds of cotton were spun by machine. By the early 1860s the

price of cotton cloth was less than one percent of what it cost in 1784 which meant that

hundreds of millions of people could dress warmly and comfortably and cleanly

7

The law of supply and demand dictates that as the supply of a good increase relative to

the demand, the price for something usually decreases.

Guilds: Mercantilism, paternalism, and restrictionism

Special licenses were needed to perform certain labor – licenses were controlled by the

guilds which did not want competition

Guild labor (and even family labor) – much time was needed to complete these tasks –

skill was needed – therefore the prices of these goods were high and could not be

afforded by most

Factories cut down the time and skill needed to produce goods – more people could now

afford even the most basic of necessities such as shoes

Leisure time, a concept which was completely unheard of outside of the class of only the

wealthiest individuals, could now be enjoyed by many. In the late 19th century the first

college football game took place Rutgers vs Princeton November 6th 1869. First pro

football game took place in 1892. Baseball in various forms dates back at least to 1845.

In America and Britain, wages in manufacturing increased 50% between 1860 and 1890

while at the same time, prices fell.

8

There were improvements in sanitation, education, transportation, parks, swimming

pools, paid holidays, leisure activities (existed for the first time in history for people other

than the wealthy)

Some examples of the industrial era:

The steamship industry

Edward K Collins was provided $3 million to construct a small fleet of steam ships to

compete with England’s Cunard line. In addition, he was provided with $385,000 a year

subsidy. This was later increased to more than $800,000.

Instead of five small ships as he had agreed, he built 4 large ships intended to

accommodate wealthy tastes.

When Cornelius Vanderbilt asked Congress for money to build a line of steamships he

was turned down. Undeterred, he found private investors and began his own line of ships

that were faster, more efficient, and catered more to the public. He offered a cheaper fare

to passengers who didn’t mind staying below deck. Poorer passengers had no such choice

on the Collins line.

Senator Judah Benjamin of Louisiana “I believe the Collins line has been our most

miserably managed.”

Senator Robert Hunter of Virginia “The whole system was wrong. It should have been

left like any other trade to competition.”

9

Senator John Thompson of Kentucky “Give neither this line nor any other line a subsidy.

Let the Collins line die. I want a tabula rasa, a new beginning.”

Collins had his subsidy taken away, and within a year the line went bankrupt.

The railroad industry

The Union Pacific and the Northern Pacific were both subsidized by the government for

$61 million total both went bankrupt. John J Hill’s Great Northern did not receive federal

funding (although it did receive state funding)

From 1880 -1900 the cost of making rails fell from $28 to $11.50 per ton while profits

went from $2 million in 1888 to $40 million by 1900.

Oil industry

Rockefeller’s Standard Oil has been the target of much criticism and is often held up as

the epitome of a trust and he was the epitome of the “robber baron”.

Ida Tarbell, of the first investigative journalists and one of the most famous “muckrakers”

wrote The History of Standard Oil in which she painted a picture of a corrupt corporation

run by an unscrupulous owner who made backroom deals with the rail industry to run

competitors out of business.

However, it should be noted that Tarbell’s brother William Tarbell, was the treasurer for

the Pure Oil Company, one of Standard Oil’s biggest competitors. The fact that she never

wrote anything critical of Pure Oil, or of many of Standard’s competitors, is suspect.

10

Rockefeller was the first businessman to recycle and conserve. To create the most

efficient business he used every part of the oil’s byproduct creating new uses such as

soaps, candle wax, petroleum jelly, and kerosene.

Because of Standard Oil's superior efficiency (and lower prices), the company's share of

the refined petroleum market rose from 4 percent in 1870 to 25 percent in 1874 and to

about 85 percent in 1880.(Armentano Anti-Trust & Monopoly)

As Standard Oil garnered more and more business, it became even more efficient through

"economies of scale" — the tendency of per-unit costs to decline as the volume of output

increases. This is typical of industries in which there is a large initial "fixed cost" — such

as the expense involved in building an oil refinery. Once the refinery is built, the costs of

maintaining the refinery are more or less fixed, so as more and more customers are

added, the cost per customer declines. As a result, the company cut its cost of refining a

gallon of oil from 3 cents in 1869 to less than half a cent by 1885. Significantly,

Rockefeller passed these savings along to the consumer, as the price of refined oil

plummeted from more than 30 cents per gallon in 1869 to 10 cents in 1874 and 8 cents in

1885.

Before 1870 only the rich could afford whale oil and candles; the poor went to bed early;

After 1870 the price of oil (and kerosene) was so low that the poor could afford to stay up

after dark. It was only after reading became an after dark activity that poor people had the

chance to do well in school.

11

Trust busting began at the state level before the Sherman Antitrust Act was passed that

affected trusts at a national level in 1890. The appearance of new technologies offered

new ways of doing things and made business more efficient. This caused the

disappearance of some other trades and businesses much like the appearance of the fist

automobiles at the turn of the 20th century saw the decline of the buggy whip and travel

on horseback.

Prime example: the use of refrigeration brought about the emergence of slaughterhouses

in one central location like Chicago, which could then put the beef on refrigerated rail

cars and ship them out. This displaced the local butchers who did the slaughtering and

preparing themselves.

This consolidation and centralization of some of the processes in industry gave the

appearance of monopoly.

Monopoly was defined as the collusion of one or more companies to deny entry into a

certain marketplace at the detriment to the public. Two symptoms of monopoly were:

restricted output of goods or access to services by the public, and higher prices than they

would normally have to pay.

However, neither were true until the state intervened with the Sherman Anti-trust Act of

1890.

The anti-trust mentality is based on a few erroneous assumptions. First, that the public

needs to be protected from greedy industrialists by the benevolent public servants.

12

Second, that the anti-trust laws will actually make things better for the public by

“protecting competition”.

Unfortunately for the public, the Sherman Act and other anti-trust laws were never

intended to protect competition. Instead, it was a protectionist policy designed to

safeguard less efficient and usually smaller companies, who the public servants usually

had a vested financial interest in protecting, from competition.

Farming

Farmers from Georgia, Mississippi, and Tennessee formed an alliance and lobbied their

representatives to protect their cotton industry from jute and twine used to bind cotton

bales. (jute is a plant fiber that can be spun into thread) These alliances proposed using

cotton to tie cotton bales and insisted that the emergence of the use of jute was damaging

their industry.

The 51st Congress (1889-1891) received 64 different petitions calling for actions against

combinations (trusts)

It also compiled a list of industries that were being monopolized by trusts. These

industries included castor oil, cotton seed, coal, iron nuts and washers, lead, liquor, steel

rails, sugar, jute, zinc, steel, oil, petroleum, and matches. In all the industries except

castor oil and matches output increased, meaning prices dropped.

13

From 1865 to 1900 farm prices were falling but at a slower rate than the general price

level. This translated into income gains for farmers in general. From 1840 to 1900 the

ratio of the division of income between labor and property owners (those who provided

capital and resources) remained 70 to 30. However, who made up that 70 percent and

who made up that 30 percent changed regularly in those 60 years.

Some people were losing their wealth because they were invested in industries that were

disappearing or who were subsidizing industries that were inefficient and were losing

profits. The push for anti-trust was an attempt to improve their financial and economic

status.

What cannot be overlooked is that the United States was rapidly changing from a

predominantly agrarian society to a predominantly industrial society.

Real GNP (gross national product) increased almost 25 percent from 1880 to 1890. In the

allegedly monopolized industries, GNP rose on average 175 percent. Showing increases

in output were sugar (75 percent) petroleum (79 percent) steel rails (142 percent) coal

(153 percent) zinc (156 percent) and steel (258 percent).

From 1890 to 1900 the trend continued as real GNP in these industries rose 99 percent as

opposed to the national average which rose by 43 percent.

14

Prices fell as well: In 1880 steel rails went from $68 per ton to $32 per ton in 1890. The

price of sugar was cut in half from 1880 (9 cents per pound) to 1900 (4.5 cents per

pound)

Congressman William Mason “Trusts have made products cheaper, have reduced prices”

Senator Edwards “The sugar trust has reduced the price of sugar and the oil trust has

certainly reduced the price of oil immensely, that does not alter the wrong of the principle

of any trust.”

Wages:

In comparison to wages in 1800, average per capita income had already increased 50%

by 1830 (R.M. Hartwell The Industrial Revolution and Economic Growth (London:

Methuen and Company, 1971) pp314-316

Food prices decreased significantly due in large part to the repeal of the Corn Laws in

1846 (The Anti-Corn Law League put pressure on the government to stop subsidizing

companies and corporations who were politically connected. Look up The Anti-Corn

Law League, as well as Richard Cobden, and Manchester Capitalism)

(Hartwell pp328-337, 356-360)

According to historian J.H. Clapham, “For every class of urban or industrial labor about

which information is available wages had risen markedly between the years 1790 and

15

1850.” For London bricklayers or compositors, wages had risen well over 40%, and for

urban and industrial workers, perhaps about 40%.

(J.H. Clapham An Economic History of Britain Vol 1The Early Railway Age pp548-561)

Overall improvement for the period stretching from 1781-1851 show an average real gain

in excess of 60% for farm workers, over 86% for blue collar workers and more than

140% for all workers, including white collar workers.

(Peter Lindert and Jeffrey Williamson “The English Workers Living Standard During the

Industrial Revolution: A New Look” pp1-2, 23-24)

“After a prolonged stagnation, blue-collar workers wages doubled between 1810 and

1850. This is a far larger increase than even past optimists had announced… Unless new

errors are discovered, the debate over wages in the early nineteenth century is over: the

average worker was much better off in any decade from the 1830s on than in any decade

before 1820. The same is true of any class of worker.”

Jeffrey Williamson Did British Capitalism Breed Inequality (Boston: Allen and Unwin,

1985) pp7-33; Clark Nardinelli Child Labor and the Industrial Revolution

(Bloomington,IN: Indiana University Press, 1990) p156

After the establishment of savings banks in 1817, deposits increased to 14.3 million

(pounds sterling) by 1829, and to almost 30 million by 1850. These savings were largely

the accumulation of wage earners. There were 14,937 depositors of the Manchester and

Salford Savings Bank 1842; 3063 were domestic servants; 3033 were children whose

16

parents saved for them; 2372 were tradesmen, clerks, warehousemen, porters, artists, and

teachers; and 6469 were laborers and industrial workers.

(Hartwell pp324-325)

“Black Innovators and Entrepreneurs Under Capitalism” by Andrew Bernstein

http://www.fee.org/the_freeman/detail/black-innovators-and-entrepreneurs-under-

capitalism#axzz2MWAYEpsD

The real motive behind anti-trust

In the late 19th century tariffs were a major source of government revenue as well as a

source of trade restraint.

According to Senator Sherman himself “Trusts subverted the tariff system; they

undermined the policy of government to protect American industries by levying duties on

imported goods.”

NY Times October 1 1890 “The Campaign Contributor’s Tariff Bill now goes to the

president for his signature which will speedily be affixed to it and the favored

manufacturers many of whom proposed and made the tariff rates which affect their

products will begin to enjoy the profits of this legislation.”

Sherman’s speech September 29th 1890- NY Times notes “We direct attention to those

passages (of Sherman’s speech) relating to combinations of protected manufacturers

designed to take full advantage of high tariff duties by exacting from consumers prices

fixed by agreement after competition has been suppressed.”

17

The entire purpose of tariff protection was to allow manufacturers to raise prices without

fear of foreign competition. Tariff protection is monopolization by government.

The Sherman Anti-Trust Act won votes for legislators and brought in cash from

campaign contributions who believed that antitrust legislation would protect them from

more efficient competitors.

Although industry as a whole was becoming more concentrated there was still plenty of

competition as rapidly rising output and the massive decline in prices show.

Protectionism – public servants will often put their own self-interest over the interest of

the common good.

Republicans controlled the government and especially Congress in the latter half of the

19th century. Republicans favored protectionism and high tariffs.

In the mid 1880s strong political movements emerged at the state level of government in

favor of anti-trust legislation that eventually took the form of anti-trust law.

It is relevant to note that state senators directly elected U.S. senators and that the

Sherman Act was introduced in the Senate and not the House. With the exception of

Maine, all states that enacted state anti-trust laws in 1889 were located on or near the

Mississippi valley.

The Farmer’s Alliance was the most powerful political coalition in Missouri at that time.

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They created a pledge that they would not vote for anyone who would not support their

demands of protection, irrespective of party affiliation.

140 out of 174 state senators and representatives signed the pledge.

The main reason they wanted an antitrust law was that larger corporations were able to

produce goods cheaper, thus smaller companies were unable to compete.

At a 1889 meeting of the Farmer’s Alliance in St. Louis a declaration was issued to

suppress all unhealthy competition. They complained that the price of grain is below the

cost of production.”

Historian David D. March wrote in History of Missouri “Just as the price of raw cotton

spurred expansion of the Southern Alliance, so low grain prices in the late 1880s caused

thousands of farmers to join the national Farmers Alliance.

Volume rose in addition to prices of farm inputs and outputs falling, which is consistent

with what one would expect in an open market.

One of the charges leveled against monopolist “robber barons” is that they colluded with

the railroad industry to fix rates for their own benefit. However, railroad rates fell

dramatically in the latter half of the century after the Civil War. In fact average railroad

rates which charge freight by the ton, fell by a whopping 78 percent from 1865 to 1885.

The output of cattle, hogs, and wheat all fell precipitously in the decades following the

Civil War, all the while prices were declining.

19

Furthermore, farm input prices, in other words what farmers would pay for machinery,

decreased significantly. Farm machinery was two and a half times more expensive in

1870 than it was in 1890.

Consumer welfare is increased when the price of goods fall and the quality increases,

which is what was happening. The advent of the railroad industry coupled with the

widespread use of refrigeration was increasing the quality.

The Vest Committee of Missouri which investigated the alleged monopolization of the

cattle industry in that area found no evidence of collusion by the Chicago meat packing

industry.

Thus, the political impetus for anti-trust law came from the farm lobbies of mostly

Midwestern and agricultural states. The local farmers could not compete with larger

industries and lobbied the government to help protect them from competition.

To sum it all up: in late 19th century America, most industries were expanding output

while prices declined. The Sherman Anti-Trust Act was used to thwart competition for

the less efficient but more politically influential companies. The Act was also used to

shield the policy of protectionism which was the real motive behind Anti-Trust laws.

Evidence of Government Subsidies in the 19th century

NY Times 1-19-1869 p1

A New Financial Scheme Introduced in the Senate

20

The House Opposed to Railroad Subsided and Land Grants

NY Times War With Indians 5-2-1870 p1

“The Union Pacific Railroad Company, Eastern Division, was originally incorporated in

1855, by the legislature of the Territory of Kansas, as the Leavenworth, Pawnee, and

Western Railroad Company, with authority to construct a road from the west bank of the

Missouri to the western boundary of the Territory.”

Was given the authority “to unite or consolidate with any other company”

“In 1862 the Union Pacific Railroad Company was incorporated by Congress with power

to construct a railroad and telegraph westward through the territory of the United

States…”

Was supposed to join with other railroads

“… and to all these roads large grants of land were made and large subsidies engaged on

the security of a second mortgage …”

“Rendering certain services to the government in the transmission of messages and in the

transportation of mails, troops, munitions and other property at reasonable rates of

compensation.”

The corporation was “entitled to certain benefits”

Urging congressional legislation in aid of the railway

At issue was the question of whether the road should be exempt from taxation as it was

an instrument of the Government. It was decided that the road should be taxed.

21

“Congress may make or authorize contracts with individuals or corporations for service

to the Government; may grant aid by money or land …furthermore these individuals or

corporations would be exempt from any State taxation”

The Government has advanced large sums to aid in the construction of a road

NY Times 2-15-1871 p5 Subsidy of the Gulf Steamship line

Gulf Line line of steamers - subsidy of $100,000 annually ($1,798,085.51 in 2010

dollars)

Australian Line - $375,000 annually ($6,742, 820.65 in 2010 dollars)

NY Times 1-2-1875 p4 The Subsidy System

Admission that subsidy system does not work well – mentions Union Pacific

Bribery

Moral standard of Congress was “lamentably low”

Pacific Mail Steamship Company

NY Times 7-13-1877 p4

Effects of the Subsidy System on Public Credit

NY Times 10-1-1877 p4

22

Democrats and Subsidies – talks about how large the subsidy system is and how

politicians interested in re-election are clamorous for subsidies

The Spectacle at Washington 2-20-1879 p4

Calls appropriations bill “…one of the rankest subsidy jobs” that was “disgraceful to both

parties”

“Republican majorities in the South”

NY Times March 23-1880 p1 Pacific Rail Monopoly

Consolidated companies “shall be entitled to all the benefits and immunities of the

individual company”

NY Times Steamship Subsidies 2-20-1881 p4

“The Senate has several subsidy schemes before it…”

“The subsidy, to be effective, would have to be at least equal to the difference in the cost

of construction and maintenance of American and foreign steamers as compared to the

gross earnings. But who is to make this calculation and how? Is it probable or possible

that a committee of Congress can determine the difference in cost caused by lower rates

of interest, cheaper material, cheaper labor, greater experience, lower and different

taxation.”

NY Times 3-20-1881 p1 Railway Works and Plans

23

Speaking of a railway system it is said that “…the Mexican government has granted very

liberal subsidies to the projectors of the enterprise”

The company receiving the subsidy may transfer ownership (to another company through

a deal or trade) “…any company receiving such transfer must have capital stock of no

less than $100,000, 10 percent of which must be paid in…Under the subsidy proper, the

Government gives the company $11,265 per mile of road constructed on the line from

Mexico City to the Pacific, and $10,460 per mile of road on the line to the northern

frontier.”

NY Times How Shipping is Discouraged 4-9-1882 p8

“The money… must come from the pockets of the tax-payers, whose force in the

business of which they were engaged would be lessened by so much, and even by more,

for the machinery of collection by the Government is necessarily defective and costly,

and for every dollar that went to the ship owner, considerably more than a dollar would

be withdrawn from useful employment in some other direction.”

NY Times 5-6-1882 p4

“…bill for the relief of American shipping”

Sources:

Bork, Robert L 1966. “Legislative Intent and the Policy of the Sherman Act” Journal of

Law and Economics (October) 15-56

24

Clemens, Rudolf A. 1923. The American Livestock and Meat Industry. New York: The

Ronald Press.

Clevenger, Homer. 1940. Agrarian Politics in Missouri, 1880-1896. University of

Missouri.

DiLorenzo, Thomas J. 1985. “The Origins of Antitrust: An Interest Group Perspective”

International Review of Law and Economics 5 no. 6: 73-90

Journal of the House of Missouri. 1889 35th General Assembly. Jefferson City, Missouri.

Journal of the Senate of Missouri. 1889. 35th General Assembly, Jefferson City, Missouri.

MacAvoy, Paul W. 1965. The Economic Effects of Regulation. Cambridge: MIT Press

Stigler, george J. 1985. “The Origin of the Sherman Act”. Journal of Legal Studies 14

(January) 1-11.

American Economic Review 1984

Southern Economic Journal (July 1963) 158

NY Times October 1 1890

Socialism

In his work, A History of European Socialism, Albert S Lindemann defined Socialism as

the opposite of individualism. Man was not merely self-sufficient, but rather a part of an

interconnected community. Thus, he had a responsibility to help those less fortunate. If

man must help those less fortunate, then by logical extension, the State must play a

central and necessary role in helping the poor. Thus, the State is redistributing wealth

from the middle class and wealthy to the poorer members of society. It can only do this

by coercion (force) There is no check on the government after it takes from the

25

productive members of society to see that it redistributes the wealth to the “protected

classes”.

“From each according to his ability to each according to his needs” - Marx

In the Strength and Weakness of Socialism, Richard T Ely makes the claim that modern

socialism was brought about by the industrial revolution in the forms of various

inventions that made a select few very wealthy, thereby separating them from the rest of

society.

The goal of Socialism is a just society.

Karl Marx outlined six commandments of his vision of Socialism, the last of which called

for the violent overthrow of the existing order. In his 1850 work, A Plan of Action

Against Democracy, Marx himself advocated the assassination of government leaders and

the destruction of public property. Marx was for the complete abolition of private

property.

Thomas Malthus – authored the work The Principle of Population put forth the idea that

the population expands exponentially and that the food production cannot keep up with

this growth. He proposed a solution of checking human behavior which included

abstinence and postponement of marriage. This is the first instance of a suggestion of

planned living for humans.

26

In Defense of Sweatshopshttp://www.econlib.org/library/Columns/y2008/Powellsweatshops.html

Sweatshop Exploitationhttp://www.gmu.edu/departments/economics/wew/articles/04/sweatshop.html

Testimonies of the Senate Subcommittee on Interstate Commercehttp://www.nlcnet.org/article.php?id=203

The Case for Sweatshopshttp://www.hoover.org/pubaffairs/dailyreport/archive/2864991.html

Chicago World’s Fair 1893http://xroads.virginia.edu/~ma96/WCE/title.html

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