LIBERTY OF CONTRACT

The growing influence of Social Darwinism helped to popularize an idea that would be embraced by the business and professional classes in the last quarter of the nineteenth century—a “negative” definition of freedom as limited government and an unrestrained free market. Central to this social vision was the idea of contract. “The laws of contract,” wrote one reformer, “are the foundation of civilization.” Labor contracts reconciled freedom and authority in the workplace. So long as labor relations were governed by contracts freely arrived at by independent individuals, neither the government nor unions had a right to interfere with working conditions, and Americans had no grounds to complain of a loss of freedom.

Demands by workers that the government enforce an eight-hour day, provide relief to the unemployed, or in other ways intervene in the economy struck liberals as an example of how the misuse of political power posed a threat to liberty. “The right of each man to labor as much or as little as he chooses, and to enjoy his own earnings, is the very foundation stone of... freedom,” wrote Chicago newspaper editor Horace White. The principle of free labor, which originated as a celebration of the independent small producer in a society of broad equality and social harmony, was transformed into a defense of the unrestrained operations of the capitalist marketplace.

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