Socialism involves the social or communal ownership of production facilities and means in an economic system. In a socialist system, the economy is managed like a cooperative. Social ownership can be through the state, individual parties or a combination of the two. After the American civil war, the United States faced a lot of social and economic problems. A majority of the poor embarked on farming as a means of livelihood. Irons looks at the various judicial decisions made during the late 1800s and early 1900 that shaped the concept of socialism in the United States. The devastation left by the war provided an opportunity for wealthy capitalists to exploit the poor in society. At the time, industrial revolution had already reached the United States and there was a wide scale of agricultural activity facilitated by the introduction of new farm implements that improved the production capacity of farmers.
Iron begins by stating that the United States experienced the fast growth in human population in the period between 1860 and 1900. As a result of the growth, the United States population increased to 75 million people up from 31 million. Of these, about 20 million lived to the west of Mississippi river. The industrial revolution brought about technological improvements in agriculture that significantly reduced the time spent on an activity. Iron argues that American farmers were able to produced way more produce than any other farmers in the world at the time. However, the benefits from their work were never commensurate to the huge output produced ( Irons 253). The devastating effects especially to farmers who felt exploited by the wealthy owners would later lead to unrest and uprisings by farmers and low wage workers in a bid to demand for better terms for their produce and labour activities.
According to Irons, the spectre of socialism appeared to creep into the United States economic and political system as an aftermath of the civil war. Socialism developed as a political movement through the adoption of political philosophies that sought to reform the American economic system to cater for the poor at the expense of the wealth capitalistic individuals. Socialists such as Herbert Spencer brought their ideas to the United States. At a time when the society was quite vulnerable due to the poor economic state of a majority of the people, his ideas were well received by many people. Spencer’s ideologies would even affect the decisions made court judges. The concept behind state socialism is to nationalize a nation’s means of production and distribution. In the United States, means of production were controlled by individuals and the wealthy dictated the terms of purchase and sale of agricultural produce.
The difficulty in acquiring farm equipment also made life miserable for the farmers. The equipment was expensive and suppliers often provided sold them as mortgages backed by farmers’ crops. High interest rates gave the farmers no option but to agree to the crop mortgages. Railroads and grain storage facilities were monopolized by wealthy individuals who charged exorbitant rates for transport and storage of grains. The Grange movement of the 1870s formed by angry farmers to fight price gouging managed to persuade legislators in some states to pass laws that a price ceiling on the rail transport and storage rates (Irons 236).
Railroad owners filed court cases to arguing that their rights were infringed by the new legislations. The cases filed in court had several economic impacts. First, laissez-faire economics acquired some legal recognition. A ruling by Judge Thomas Cooley stated that a law that met all necessary requirements could still fail if it infringed on the private property rights of individuals including corporations. Such rulings promoted laissez-faire systems and encouraged socialism. At the time, the socialist ideas of individuals like Herbert Spencer became popular as an aftermath of the civil war (Irons 237). Irons argues that Spencer’s socialist ideas were easy to sell given the fact that a majority of the people were poor. By definition, socialism involves the social or communal ownership of production facilities and means in an economic system whereby resources are communal. Such an idea would have been very welcomed at the time.
After the civil war, there was a lot of effort made to introduce the concept of social dwarfism in the United States. Legislative efforts to improve the people’s welfare faced a lot of opposition. Spencer’s ideas found an audience in lawyers and judges too. The courts became a major avenue through which the concept of laissez-faire spread. Cases such as Munn v. Illinois (1877) paved way for socialist ideas to penetrate the United States system. The 1877 railroad workers strike for example was viewed by Karl Marx as an explosion of resistance towards capitalism (Irons 242). Marx adds that although it was suppressed, it would act as a stepping stone for socialism. The judicial decisions made at the time were largely based on laissez-faire and socialist arguments. Although it was the duty of the state to protect its weak against harm from stronger parties, it should not be to the detriment of any party.
The spectre of socialism became a serious variable in court cases. It led to the passing of populist legislations such as the 1894 tax laws. The laws leaned towards a socialist approach by suggesting that only those individuals who earned over $4000 dollars would be liable for income tax. At a time when a majority of people earned way less that this amount, it meant that the tax burden would fall significantly on the wealthy. In 1895, the case of Pollock vs. Farmers Loan & Trust Company suffered the effect of the socialism spectre. The case split the then eight-person bench right in the middle. It was only after further arguments by Joseph Choate, a prominent Wall Street lawyer that the tax laws were communistic both by purpose and tendency that five judges voted to abolish the tax law.
One of the most significant impacts of the judicial rulings was that of the Debs case. Irons reveals that the Debs case had a huge impact on politics in America. Eugene Debs who was a democrat transformed into a socialist after his imprisonment. In a subsequent publication by Debs, he states that conflict baptized him into socialism. His inspiration to transform into a socialist came from the class struggle that he witnessed. Debs later became the chairman of the Socialist Party. Debs transverse the United States to spread the concept of socialism and although he may not have succeeded in converting the country to socialism, he managed to keep other politicians alert to prevent their followers from defecting to socialism (Irons 247). Although socialism did not manage to establish its root in America, those who advocated for the concept were able to have a significant impact on the American economic, social and political atmosphere.
Works Cited
Irons, Peter. A People's History of the Supreme Court: The Men and Women Whose Cases and
Decisions Have Shaped Our Constitution. New York: Penguin Books, 2006. Print.
