All Labor Sites, Zero Carbon

I recently completed visits by electric vehicle to all US national park sites primarily focused on (paid) labor issues, including agriculture, mills, mining, railroads and steel. Even more interesting than learning about dangerous early working conditions, was realizing that the worst cases of labor conflicts and disasters in our history share common circumstances. When there is excess capital with extreme time pressure to achieve returns especially in a limited geographic area, owners engaged in hyper-competition often resort to unethical, unsafe and/or illegal tactics to extract profits at the expense of their own employees.

Agriculture

After visiting one more site, I will write a separate post about slavery. Even after emancipation, agriculture continued to exploit farm labor brutally, through sharecropping & tenant farming, where workers were kept in perpetual debt to the owner.  Cane River is a good place to learn how a plantation adapted to exploit farm labor in different ways from before the revolution to WWII.  As black workers moved into industry after that war, agriculture began to exploit more migrant workers, especially Pilipino & Mexican workers on the west coast.  National chains engaged in ruthless competition with local owners over the most productive fruit farmland in California—supported by unjust foreign labor policies—cutting labor costs to maintain profits as prices fell.  César Chávez park is a good place to learn about the history and resulting farm worker strike.   

Mills 

Water-powered industrial mills pre-date our country, but they were refined and boomed after the revolution.  The company town developed near the first cotton mills in Rhode Island and were copied at similar sites in New JerseyMassachusetts and Ohio.  Before electrification allowed factories to be built in cheaper locations, mill towns only formed in very specific places along rivers with large volume water falls near ports.  This meant concentrated competition among many firms using the same techniques.  Labor needed training and skilled, small fingers were more nimble than large.  So, owners hired women and children.  Immigrants arrived by the boat load.  Supplies of cotton came from slave plantations often owned by the mill owners.  The incredible boom in productivity led to collapses in prices.  70+ hour work weeks, strict control of women’s lives, economic control of labor through company housing, stores, entertainment and even churches, and child labor became used to sustain competitive advantage.  Strikes were oppressed with dirty tricks and pressure tactics including media smear campaigns and violence.  Safety was disregarded, as seen in disasters like Pemberton Mill near Lowell in 1860 when over 100 women & children were crushed by heavy machinery or 50 years later in the Triangle Shirtwaist garment district fire.  

Mining

Mines often create cruel capitalism conditions.  Investors see growing demand & high prices and over-invest, funding multiple aggressive firms with similar equipment.  Labor and small operators flood the area, with everyone trying to ‘strike it rich’ with the mother lode.  From black lung in coal country to radiation sickness in uranium mines, owners sacrifice miner lives and crush strikes with violence and dirty tricks.  (Watch “Harlan County USA”).  The world’s largest pure copper lode was found and mined in upper Michigan (see photo), where at a Christmas party for striking families upstairs in Keweenaw’s Italian Hall, an anti-unionist outside shouted ‘fire’ and blocked the door: 59 children and 14 parents were crushed to death.   

Railroads 

Disregard for the lives of their workers became part of the gilded age tycoon culture.  Despite repeated safety warnings, the wealthy club members on Lake Conemaugh voted to raise their dam an extra two feet to avoid dirtying their hems while crossing.  The resulting flood wiped out the company town of Johnstown Pennsylvania, killing over 2,200 people.  Speculation on railroad stocks led to frequent booms and busts and much over-investment, with only limited lines becoming profitable.  Labor was also imported from China with strict laws prohibiting settling permanently.  Railroad owners faced diminishing returns, and repeatedly pressed labor for concessions, provoking a massive strike led by Pullman porters.  Rather than negotiate, management bought the US Attorney General and influenced President Cleveland to bring in the troops.  

Steel

The history of labor is replete with examples of class division: people of color, women, children and immigrants are systematically paid less. Capitalists can cut labor costs by keeping one group down, which they leverage to lower labor costs for all. World War II broke standard labor practices, hiring women and minorities to build ships and produce armaments, but as after other wars, many labor gains were later lost. Racism is not always understood as an economic tactic, but the history of labor and civil rights are inextricably linked. Birmingham Alabama had a hyper-competitive steel industry—as the only location in the world with significant amounts of iron, coal and limestone nearby—, and owners organized to divide labor along racial lines to lower their costs: they codified racial segregation, including prohibiting black and white children from playing together.  The modern civil rights movement grew in response to racist social policies imposed by steel factory owners seeking to perpetuate a two-tiered wage system. 

Lessons

Capitalism is mutually beneficial for customers, employees, owners and society. But especially when an owner is at personal risk in a hyper competitive business with diminishing returns, there is an incentive to cheat, act unethically or even commit crimes.  Some capitalists use their wealth & power to corrupt government and civic leaders, influencing media and disenfranchising voters. Cruel labor conditions have persisted in this country for centuries, changing only with war, disasters, violent strikes or specific market collapse: i.e. too late.  

If we learn from history, we can curb the excesses of hyper-competitive capitalism. Look for large concentrations of capital aggressively competing to dominate a single market in a short time frame. Look for extreme funding of misinformation, government corruption, efforts to divide the public and restrict voting. Hold business leaders to strict legal and ethical behavior. Then, perhaps, the next tragic chapter in our labor history can be avoided. 

Blackstone River Valley National Historical Park

The river flows from northern Massachusetts into Rhode Island and has a natural waterfall not far from a navigable ocean ship channel. That made it a perfect location for an experimental mill, to see if the fledgling Americans could copy the British mill industry. Here Moses Brown, a Quaker and reformed transatlantic slave trader, gathered an English mill expert/ industrial spy, several inventors, blacksmiths, shipwrights and skilled craftsmen to build the first successful water-powered cotton-spinning machine in America. Here, America joined the Industrial Revolution.

The mill owners knew that the cotton came from slave-plantations and some later owners even invested in plantations while still claiming to be Abolitionists. (The Brown family founded the eponymous University here with slave trade money). The ranger at Slater’s Mill did an excellent job in describing this hypocrisy and the pros and cons of industrial capitalism, along with explaining the mechanics and the history of the mill company towns that grew up all along the valley, until electrification moved the mills south. Pollution from heavy dyes is still a problem as are the dams, but major clean ups have restored much of the riparian ecosystems, for birds, fish, plants, hikers, bikers and paddlers to enjoy. The entire area is interesting, with old shops, an Audobon park, and legacy industrial buildings.

Great Sand Dunes National Park

I’m obviously not much of a photographer, but I like this one. The tallest dunes here are over 700 feet, but they’re dwarfed by the surrounding mountains. Since I camped at Piñon Flats in the park, I was able to take this just as the sun came over the mountains, which added shadows for contrast. I hiked into the dunes before dawn and along the creek, but it’s not easy to take an interesting picture of so much brown sand, even in such a beautiful, surreal landscape in the moonlight. The dunes and the neighboring preserve are basically all wilderness, easily hiked into, and our footprints quickly disappear.

Whenever I wander into any wilderness, I always wonder about what we value. I have both a BS & MBA in business, and I worked in HQ at a Fortune 100 financial firm for a couple decades. And it seems to me that capitalism is terrible at valuation. One problem is that the first business to claim a resource is often just the first idea that comes along. There may be a better and more profitable use for a resource, but the quickest way to make money is typically the one that’s chosen. Another problem is that business people aren’t very innovative. If they see one business is successful in an area, then they will often just copy that idea. Economically, we’re far better off with a diverse set of competitive products and services than with a small number, because then we’re more resilient to market changes. But short term thinking dominates, which leads to over-investment in a few businesses, rather than a broad, diverse range of businesses.

It doesn’t take any special training to see this. Drive through most towns and see the same chain restaurants everywhere. Look at how similar most vehicles are or how all the fields in an area grow the exact same crop or raise the same cattle. Business is mainly herd behavior, and few want to risk money to develop a completely new business. Capitalists need tax incentives to change. Traditional car companies killed the electric car, then ignored Tesla, and now are demanding that the government build a charging network for them to compete. Who knew America’s largest and oldest corporations were such whiny cowards who need taxpayer handouts before they will adapt?

Why do I think about valuation in the wilderness? Because if the first guy to find this place had owned a cement company, he would have started carting off these dunes to make concrete. And then other concrete material suppliers would have copied him, lowering profits to nearly zero. And the wilderness would have been gone before anyone bothered to think whether there were any other better uses. The same is true of forests, wetlands, prairies, rivers, valleys, mountains and oceans. Capitalism rewards the first, fastest, cheapest exploiter for destroying wilderness, and penalizes long term thinking. Because time is money.