Cause: The primary cause of the Pullman Strike was the severe wage cuts imposed by the Pullman Company in the wake of the economic downturn caused by the Panic of 1893. While the company reduced its workers' wages significantly, it did not lower rents or prices for goods in the company-owned town of Pullman, leading to extreme financial distress for the workers, many of whom were on the brink of starvation despite their contributions to the company’s wealth. This blatant disregard for the well-being of employees provoked a strong reaction from the workers, who sought to address their grievances through peaceful protest, only to be met with hostility and dismissal from the company.
Effect: A significant effect of the Pullman Strike was the federal government's intervention, which marked a pivotal moment in labor relations and governmental involvement in labor disputes. The strike escalated to a national level, disrupting rail traffic across the United States and leading to a federal injunction that ultimately favored the Pullman Company. The arrival of federal troops in response to the strike resulted in violence and casualties among the strikers, showcasing the lengths to which the government was willing to go to suppress labor unrest. Additionally, this confrontation laid the groundwork for future labor movements and highlighted the need for reform in labor laws and practices, as it sparked national conversations about workers' rights, the role of unions, and the power dynamics between capital and labor in America.