1. Low Agricultural Prices: Falling global commodity prices, primarily for major US agricultural products like wheat and corn, led to a decline in farm income and rural poverty.
Solution: Farmers' Alliance and Grange Movements emerged to push for collective action, including marketing cooperatives and lobbying for government assistance.
2. High Tarrifs: High protective tariffs, such as the McKinley Tariff of 1890, raised prices for manufactured goods that farmers needed, while their crops' prices declined.
Solution: The Populist Party advocated for lower tariffs and increased competition to reduce the cost of living for farmers and workers.
3. Lack of Regulation: Unregulated monopolies, particularly in the railroad industry, led to unfair practices like discriminatory shipping rates, affecting farmers and businesses.
Solution: The Interstate Commerce Act of 1887 aimed to regulate interstate commerce, while the Sherman Antitrust Act of 1890 sought to prevent and break up monopolies.
4. Currency Inflation: The deflationary policies of the gold standard caused falling prices, making it harder for farmers to repay debts and pushing many into foreclosure.
Solution: The Populist Party advocated for inflating the currency, such as through the free coinage of silver, to increase the money supply and alleviate debt burdens.
5. Labor Exploitation: Industrial workers faced harsh working conditions, low wages, and poor safety regulations.
Solution: Labor unions, such as the American Federation of Labor (AFL), organized to demand better wages, improved working conditions, and collective bargaining rights.
These challenges led to social and political unrest, inspiring movements and reforms aimed at addressing the grievances of farmers and workers. Ultimately, these efforts contributed to the rise of the Progressive Era in the early 20th century, which saw significant reforms in areas like labor rights, regulation, and social welfare.