Perlman Land Development, Inc. purchased land for $70,000 and spent $30,000 developing it. It then sold the land for $160,000. Sheehan Manufacturing purchased land for a future plant site for $100,000. Due to a change in plans, Sheehan later sold the land for $160,000. Should these two companies report the land sales, both at gains of $60,000, in a similar manner?
Social Movements – Week 7 rd th February 23 and 25 , 2016 Worker’s Alliance of America o Did not last very long o It declines in part due to internal fracturing It tried to unify different organizations with different people Why the decline in the Unemployed Worker’s Movement in General o Sense of indignation and injustice o Bureaucratization dampened protest Lobbying replaced direct action o Political opportunities contracted New Deal coalition weakened o Anti-Communist rhetoric increased Leftist policies branded communist and un-American o Focus shifts from the unemployed workers Work relief replaced direct relief No cash grants, instead a program that provided jobs Southern Democrats o There was a huge political split between the North and the South o These democrats had to decide who they wanted to side with New deal democrats or anti-union republicans Over time they began to support the republicans o They were really scared by New Deal organization and what it would do to race relations A weak state by design o Roosevelt was passing legislation with congress that was supportive of the changes that he was making for the people o The Supreme Court was very conservative and ruled much of his legislation as unconstitutional o Roosevelt then decided to pack the Supreme Court in order to have a majority and be able to have the majority and support Congress did not like the idea and pulled their support James Mark Wilcox (D-FL) 1937 o When we turn over to a federal bureau the power to fix wages, it will prescribe the same wage for the Negro that it prescribes for the white man. Now such a plan might work in some sections of the United States, but it just will not work in the South. You cannot put the Negro and the white man on the same basis and get away with it. o This regional fracture made the political opportunities less favorable for the Worker’s movement Communism o The government was very worried about Communism and they began to do everything that they could to frame Communism as un-American o A committee was created in originally in 1938 to find fascists but it quickly moved to attempting to find communists Work Relief Programs o Federal Emergency Relief Administration Provided states with cash to distribute to the unemployed workers Social Movements – Week 7 rd th February 23 and 25 , 2016 o Works Progress Administration 1935 Replaced FERA Rather than providing money, it created about 8 million jobs in about 8 years. 3.3 million jobs created in a year. Not nearly enough jobs for the people who were needing them Public Support Weakens o Do you thin relief should be given as work relief or as direct cash relief Most said work relief o Should labor unions be regulated to a greater extent Most said yes o Should people who work for the government be allowed to go on strike Most said no o All over the country there have been strikes of WPA workers which is your attitude Prosperous – No sympathy Poor – No sympathy Unemployed – No Sympathy All – No sympathy Most had no sympathy or though that costs supporting the WPA should be cut o Expenditures by the government for relief and recovery are Most said too great others said about right o Do you think it is important that congress Appropriate more funding for relief Take government out of competition with private business Pass laws to curb labor organizations Balance the budget Favorable POS o USA & France o Widespread protest Unfavorable POS o UK Liberty o Lochner v. New York (1905) New York’s Bakeshop Act (1897): Employers cannot require bakers to work more than 10 hours/day or 60 hours/week The cause of this is debated It is argued that it was partially because of the large number of immigrants coming in who were willing to work long hours in bakeshops for less money than Americans This law was challenged and made it to the Supreme Court This was ruled constitutional by the Supreme Court stating that it th violated the 14 amendment. Violating the ability that people had to enter into a work contract – liberty o It did not allow an employer and an employee to create their own jobs. Social Movements – Week 7 rd th February 23 and 25 , 2016 o Adair v. United States (1908) Erdman Act of 1989: criminalized discrimination against workers who belonged to unions, or threats to fire workers who joined unions Banned “yellow dogs” contracts Part of employment agreement that allowed employers to add in a clause that said employees were not allowed to join unions o Adkins v. Children’s Hospital D.C. (1918) set minimum wage for women and children (between $9 and %16.50/week depending on the job) Supreme Court: minimum wage interferes with libertyof contract Reversal o National Labor Relations Board v. Jones & Laughlin Steel Corp. (1937) Jones & Laughlin Steel fired 10 employees after they unionized; the NLRB ordered the workers be rehired and given back pay Supreme Court: The federal government has power under the Commerce Clause to protect union members o Why the reversal Some historians believe that this was changed due to Roosevelt’s court packing scheme. Most of the decisions made against things that Roosevelt was proposing were by thin margins National Labor Relations Act of 1935 o The denial by some employers of the right of employees to organize……lead to strikes and other forms of industrial strife or unrest, which have the intent or the necessary effect of burdening or obstructing commerce. o The inequality of bargaining power between employees….and employers…burdens and affects the flow of commerce, and tends to aggravate recurrent business depressions, by depressing wage rates and the purchasing power of wage earners o If…the Board shall be of the opinion that any person named in the complaint has engaged in or is engaging in any unfair labor practice, then the Board….shall (require) such person….to take affirmative action including reinstatement of employees with or without back pay. Social Movements – Week 7 rd th February 23 and 25 , 2016 o Roaring 20’s Relationship between strikes (blue) and unionization (red) o During this time those unionized is steady and the work stoppages is fairly low 1933 Inauguration After Roosevelt takes office, there is a huge spike in work stoppages because there was a favorable political opportunity However, the unionized rate was actually stead and fell a little bit Wildcat strikes o A strike that does not have union authorization o People join these unions because it gives them the ability to mobilize, but during this time people were doing that on their own 1937 Strikes rise in 1937 then drop dramatically But unionizing dramatically increased There is not a clear systematic relationship between the two During this time is when the Wagner act begins to function in full force. o The government is very much responsible for strikes, unionization, etc. Social Movements – Week 7 rd th February 23 and 25 , 2016 o Piven and Cloward say that formal organizations don’t emerge until after the peak of strikes o It is not social movement activity by itself, but in conjunction with electoral politics Political opportunities o Willingness to repress Governor George Earle (Pennsylvania) pledges never to use state troops to break strikes Governor Martin Davey (Ohio) sent the National Guard to break up picket lines and arrest strike leaders Lead to 16 deaths and many more injuries o People had to look at the benefits and risks. Was it going to be worth the risk to attempt to gain the benefits that they wanted Inter-organizational competition o The AFL also prospered—sometimes because employers rushed to sign up with an AFL union in order to ward off the more militant CIO The AFL was more conservative than the CIO American Federation of Labor They wanted to take advantage of the Congress of Industrial Organizations breaking away Employers tried to get workers to support AFL Social Movements – Week 7 rd th February 23 and 25 , 2016 o When a more liberal organization breaks away from the more moderate organization the moderate organizations look much more appealing to government and thus gain more support Reasons for Failure o Bureaucratization and oligarch Workers are successful when they are pressing for immediate concerns and demands outside of union organization o Working-class fragmentation They have a weaker class based identity (in the United States) Very fractured along racial and ethnic lines and causes a problem with the structure of workers who are attempting to create change o Focus on electoral politics Piven and Cloward say that this is important but cannot have an impact alone. They must happen at the same time as other favorable factors politically o (False) promise of mobility The American Dream When people are promised mobility they are o Anti-union framing o Repression and rollback Dampening Dissent o Many employers agreed to allowing unions because they thought that the union would discipline workers and reduce the wildcat strikes that employers were dealing with. o Unions were supposedly for bargaining not for striking o Union leaders were more likely to stay out of strikes and picketing in order to look better to employers so that they could better bargain for their union members. They wanted to look like they were representatives. They stated that they were not authorizing strikes but rather preaching industrial peace Immigrants o “My wife can always tell from the smell of my clothes what breed of foreigners I’ve been hanging out with” Bill Collins, AFL o The fracturing occurs between these foreigners because many unions refused to allow anyone who was not white to join unions. The Failure of Populism o A party for the little man, attempting to further the little man’s interest o These leaders tried to form an alliance between poor whites and African Americans because they felt that they could be mobilized as a large voting force. o “You are made to hate each other because on that hatred is rested the keystone of the arch of financial despotism which enslaves you both. You do not see how race antagonism makes beggars of you both. The colored laborer with the white laborer. The accident of color can make no difference in the interest of farmers, croppers, and laborers.” o Different parties were making appeals and not many came to support the People’s Party Eugene Debs o Socialist Social Movements – Week 7 rd th February 23 and 25 , 2016 o Ran for president 5 times o The two party system moderates the ability of others to gain the support of the majority of voters Promise of Mobility o Correlation between children’s and parents’ earnings Based on children’s wages as adults The higher the parents make, the more the children make The higher the bar, the lower the upward mobility Anti-Union Framing o It was common for unions to be portrayed as Communist and it was a very successful way to remove support from Unions Roll Back o Repression of Labor to Wagner Act then rolls back to Taft-Hartley Act Wagner Act Mainstream acceptance and removal of oppression Taft-Hartley Act Social Movements – Week 7 rd th February 23 and 25 , 2016 o Most people attribute this rapid drop of the Air Traffic Controllers This strike was in direct violation of U.S. law that did not allow strikes from Federal Employees Government orders employees back to work under the Taft-Hartley act and were given 48 hours to return to work and keep their jobs. Only about 10% came back. The rest were fired and barred from another government job for the rest of their life. Social Movements – Week 7 February 23rdand 25 , 2016 o Union membership can predict some income inequality. It is not the only cause but is definitely a cause Social Movements – Week 7 February 23dand 25 , 2016