2. Later as towns grew up, people began to specialize and produce only a certain product which they now sold in order to get money to buy the commodities they needed;
3. With the building of roads, canals, steamships and railroads, the area in which the manufactured goods was sold, expanded first throughout the nation and then throughout the world, so that now we have world markets.
c. This expansion of markets has affected the tactics of organized labor. Trade agreements are made on the basis of markets; hence a separate agreement is made with the dress and waist employers to cover that market, and the same is true of the cloak and suit market.
d. The boycott and the union label are means through which labor attempts to exercise its influence in the control of markets.
1. Through the boycott, labor withholds patronage from unfair employers.
2. Through the union label, labor bestows patronage upon fair employers.
V.
a. The third of these great theories explains industrial evolution according to the manner in which man sells the results of his labor. This is known as the Bargaining Theory, and is concerned with the question: with whom does the worker or producer strike the bargain for the work he performs?
b. In the early history of industry the worker produced directly for the customer or consumer, so that there were no middle-men between the worker and the consumer. Later the retail merchant stepped in between the worker and the consumer, so that the worker no longer sold his product to the consumer but worked for the retail merchant. Following this, we have the wholesale merchant and the manufacturer for whom the worker produced, and who sold to the retail merchant, who in turn sold to the consumer.
c. This separation of the worker from the consumer has made it possible for the capitalist to exploit both the worker and the consumer, and forced the workers to organize into unions.
VI.
a. It was this development of factory production, national and world markets, and the middle man or capitalist, which made it impossible for the worker to sell direct to the consumer that brought about modern capitalism and a permanent working class.
b. Modern capitalism is, therefore, an outgrowth of large scale production and national and world markets. These entail
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