The Rise of Economic Liberalism and the Labor Movement

The Rise of Economic Liberalism

Economic liberalism imposed a new system to regulate the economy. Based on the principle of laissez-faire, laissez-passer ("let do, let pass"), this system promoted freedom of action in all economic sectors.

Basic Principles of Economic Liberalism:

• Work is the only source of wealth.
• Personal interest serves the interest of the community.
• Economic activity is regulated by the law of supply and demand.
• Governments should not intervene in production and exchange. Private enterprise must function freely with maximum individual initiative.
• Free trade is essential.

The application of economic liberalism was favored by venture capitalists.

The Labor Movement

The disappearance of traditional worker protections, coupled with the rise of economic liberalism, left workers vulnerable to exploitation by employers. Working conditions were harsh:

• Excessively long working hours under strict discipline.
• Lack of safety and hygiene, leading to illness and accidents.
• Child labor in mines and factories.
• Low wages, particularly for women and children.
• Unrestricted dismissal without compensation.
• No holidays or social security.
• Workers were forbidden from organizing to defend their rights.

The Beginnings of the Labor Movement

Workers began to recognize the need for unity and action to improve their working conditions. Initial reactions occurred in the United Kingdom, with groups of workers destroying machinery—a movement known as Luddism. The government responded by enacting a law imposing the death penalty for such acts.

Local associations of workers in the same trade, known as Trade Unions, began to form, seeking better conditions. Worker demands for reforms reached the British Parliament, notably through the Chartist movement, which submitted a petition with political demands favorable to workers. Parliament rejected the petition.

Other movements emerged, including utopian socialism, an ideology opposed to capitalism that sought state intervention in the economy to improve working conditions.

Some Utopian Socialist Ideas:

• Saint-Simon: Proposed a revolution to improve the living conditions of the working class.
• Charles Fourier: Envisioned a new society based on production cooperatives.
• Robert Owen: Founded a cooperative in his factory in Scotland, established schools, and reduced working hours for his workers.

The Development of the Labor Movement

From the mid-19th century, the labor movement gained momentum with new forms of struggle and the emergence of ideologies critical of capitalism.

Key developments included:

• The growth of trade unionism, enabling workers to organize and negotiate with employers and the state for better working conditions.
• The use of the general strike as a pressure tactic. Both strikes and unions were initially considered illegal.
• The emergence and spread of two revolutionary ideologies: Marxism and anarchism.