LABOR is Capitalism

Every major holiday at HX Research, we like to have a moment of introspection.

For most people, the stock market holidays are an excuse to hit the beach or catch up on house chores. We are no different.

In recent years, though, we have spent a few minutes thinking about the meaning of these holidays.

Earlier this year, on the Juneteenth holiday, we shared a background on that holiday. We were not all that familiar with it and thought many of you might not be either.

Today, as our country celebrates Labor Day, we will explore this day.

Labor Day has been a holiday for the lifetime of every reader of this newsletter (it became a Federal Holiday in 1894), and many of you are likely not aware of the troubled history of labor in this country.

While in the 20^th century, we saw the rise of worker protections and unions, there were no protections during the previous century.

The late 1800s saw the height of the Industrial Revolution, and as workers moved from the fields to the factories, there was a fundamental change in the nature of work. The hours were much longer, the conditions brutal, and the pay was minimal.

Childcare also became a much more problematic issue in this new industrial economy. This led to child labor abuses that were tied to the same issues as those facing adult workers.

Do you remember reading Upton Sinclair's 1906 book The Jungle in school? It chronicled the horrific conditions in the Chicago meatpacking industry.

As these abuses and terrible conditions proliferated, a reform movement to protect worker rights began to emerge. Protests spread across the country.

One of the largest was in September 1882, when over 10,000 workers marched from City Hall to Union Square in New York City, creating the first de facto Labor Day Parade.

While this protest was peaceful, many demonstrations across the country turned violent. Chicago was the epicenter of much of this activity and eventually saw the Federal Government sending in troops, resulting in multiple deaths.

These fatalities turned public opinion, and the fight for worker's rights began to make some progress.

While it was already a holiday in 30 states, in June of 1894, President Grover Cleveland signed a bill into law officially establishing Labor Day as a federal holiday.

The battle for worker rights would continue for half a century, but it is valuable to take a step back and consider how far we have come in this regard.

While there are still many tough jobs out there, I think back to the work lives of my parents in the 1970s and 1980s, and the jobs of today seem like vacations by comparison.

This isn't to say that people aren't working hard or that there aren't difficult conditions, but there has been a ton of progress, despite what the critics would like to argue.

We also think that LABOR has been the key to the stock market.

While we celebrate entrepreneurs and CEOs, the incredible success of our economy and stock market would not have happened without the effort of millions of workers.

Our success as a country in implementing worker protections and enabling people to build careers and support their families and lives is the key to our success as a nation. THAT success is also the key to the success of our stock market.

Again, there are always aspects of our economy and society that could be better, but I have no doubts that we have done incredible things here in the United States.

Speak to anyone from countries in Latin America, Asia, Africa, or the Middle East, and they will tell you how good things are here.

While some may think that America is going backward on many fronts, we STRONGLY disagree.

Here at HX Research, we believe that the American experience has always been an evolution in which many have suffered and sacrificed to give us the freedoms we enjoy.

The American experience is one where constructive optimism moves us forward to a better society for all. Our responsibility is to work hard to maintain this positive outlook and continue this success.

Optimism is also your MOST powerful tool in long-term investing. America, our economy, and our stock market are built to succeed. Our optimism in this success ensures this outcome and helps you grow your portfolio.

With our optimism – and willingness to work with our fellow Americans – we honor those who have sacrificed for us to have these freedoms and continue to build a better world.