Industrialization and the Condition of Labor In 1873 a major, economic depression of the U.S. monetary system, was started due to a financial panic. Four years later, about one million people were unemployed, business growth was stagnant, and working people were growing anxious. In 1877, many of the railroads issued wage cuts and layoffs, which prompted railroad workers to go on a paralyzing strike. Due to this strike a lot of people died, businesses suffered losses of millions of dollars in destroyed property, leaving citizens stunned at the class warfare they had witnessed. At this time, in American history I personally do not believe things could get worse for the American people.