Labor-capital confrontations had been long brewing since the dawn of the industrial age and the start of urbanization. As the owners of the means of production amassed capital, wealth became concentrated into the hands of the few. Labor movements emerged both in Europe and in the United States, transforming the political, economic, and social landscapes of nations. The environment in which labor-capital confrontations developed must therefore be understood within a broader historical context. Market liberalization and globalization led to increased opportunities for labor exploitation, in stalwart industries such as steel and other heavy manufacturing. At the same time, exploitation of workers led to worker unrest, strikes, and protests. The need for stability soon trumped the drive for unbridled financial gain, and the government of the United States finally helped bridge the gulf between labor and capital through a series of laws and commissions such as the National War Labor Board. Yet the excuse of national security during the war also allowed capitalists to gain the ultimate advantage over labor, causing unions to weaken irreparably.
Even after decades of achieving legitimacy in political, economic, and social circles, labor unions and organizations like the AFL/CIO failed to win long-term legitimacy. Wartime complicated the role of labor in American politics, too. Capitalist industry stalwarts in the steel and munitions manufacturing sectors profited from a sense of urgency fueled by wartime propaganda, and wartime realities. To promote industrial development rapidly and without impediments, the government gradually supported capital over labor, yet not without significant compromises that helped labor to achieve some of its goals like the instatement of minimum wage laws and the protection of collective bargaining rights.
After World War One, President Roosevelt helped create greater harmony between labor and capital even prior to the New Deal set of programs.[footnoteRef:1] The National Industrial Recovery Act and similar legislation allowed industry to prosper and continue to promote economic growth and capital gain, while simultaneously addressing the concerns of workers. The National Industrial Recovery Act was also instrumental in re-establishing anti-trust laws that had somewhat weakened during wartime. Depression-era fears hounded both labor and capital during this critical stage of American history. Labor fought for basic rights including collective bargaining and minimum wages; while capital recognized the need to rapidly...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now