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12/18/2021

Blog post by Jonah Tolman

https://www.google.com/amp/s/www.businessinsider.com/amazon-lifting-working-class-higher-wages-hiring-spree-factory-towns-2021-9%3famp

Company towns first arose in the 1890’s, for industries like coal mining or railroad construction, naturally set apart from civilization. One company would strategically own all businesses within a town, which ultimately lead to lack of personal freedom for employees. If the controlling company went under, the entire economy collapsed. Eventually, the introduction of automobiles allowed the decline of company towns, since workers could live anywhere and commute to work easily. As the article argues, the possibility of Amazon “factory towns” looms today.

With so many downsides to company towns, who, if anyone, could benefit from them in today's economic, social, and political climate?

Personally, I disagree with these factory towns. I do not think they deliver what promises they claim to, such as being a “solution to inequality.” Instead, they are schemes to make the rich richer, and the poor poorer. We are living out a dystopian novel. Imagine if Salmon became a company town with Saveway. It would be more of a hell-hole than it is already. This is nothing new to American history, just look at all the mining towns around Salmon left crumbling and abandoned. Once the boom dries up, it’s crickets.

38 Comments

Micah Tolman

12/19/2021 12:47:30 pm

Interesting topic for sure. When we were on our way home from vacation to Denver, we passed a town that was built entirely around the natural gas industry. It was a small town with little more than a few houses and a big factory. It was odd. It was quite isolated from other towns too. An interesting discovery I made from the PBS website, was “Without external competition, housing costs and groceries in company towns could become exorbitant, and the workers built up large debts that they were required to pay off before leaving.” From the research I have done, it seems little to no benefits exist except for the company’s themselves.

Lizzie Nelson

12/19/2021 02:21:06 pm

I would have to say that there seems to be like no perks to a factory town. This would make it difficult for people to ever get out of this vicious cycle of death. People would have a hard time getting out of this town to do more like go to college or do something else with their lives.

Kendra

12/19/2021 02:44:19 pm

I think this is sad to see. It makes it so there is only one place to work and if you don’t get along with the business, you have to leave. What is this helping? Only the business I suppose.

Ele

12/19/2021 07:02:00 pm

It definitely would be hard to even try and move to a place like that. Like you said, there is really no benefit unless you are the individual owning it.

Hailey

12/19/2021 01:05:06 pm

Being the daughter of a small business owner, I strongly disagree with the notion of factory towns. This economic structure would deconstruct the livelihoods of many men, women, and children throughout the community of Salmon, Idaho. With Jonah’s example of Saveway, Salmon citizens can witness the issues that arise with a singular company controlling only a couple aspects of our town’s market. Being the only large grocery store in town, Saveway is able to monumentally raise prices since the majority of our community has to shop there. If Saveway owners were in ownership of all the other faucets of the market, our community would have no choice but to pay the price demanded by them. This, as Jonah said, would only make the “rich richer, and the poor poorer.”

Micah Tolman

12/19/2021 02:01:54 pm

This would be quite sad. Many people in Salmon would have nowhere to go because they can’t afford to move. If they can’t afford to live in Salmon anymore too, then they would be stuck.

Lizzie Nelson

12/19/2021 02:24:02 pm

I have to say that it is true that the rich would only get richer and the poor would only get poorer. This would ruin our economy and there really would be nothing left for people to do in Salmon.

Courtney Vennell

12/19/2021 04:55:57 pm

It is crazy to think that Saveway controls so much of the economy of Salmon and that they can just raise prices and we can’t really do much about it.

Lizzie Nelson

12/19/2021 02:18:07 pm

Factory towns have been around for many years. History seems to continue to keep repeating itself because there are still towns like this in the United States. However, if Salmon were to become a town like this than it would utterly lead to the destruction of our town. I think that it would destroy our small economy and leave many people without jobs. If the economy were to crash then we would be left with nothing. This is why we have to have some diversity or nothing will ever work.

Kendra

12/19/2021 02:41:58 pm

I like how you talked about how this is still happening. If this is a pretty big problem then you’d think that people would try to change it, but that doesn’t seem to be happening.

Carson Mildon

12/19/2021 02:48:27 pm

I completely agree with what you said about Salmon. Competition and diversity are imperative to the success of any economy no matter the size or scale.

Hailey

12/19/2021 02:52:09 pm

I like your comment about diversity; it stimulates the economy but also allows individuals the freedom they need to insert themselves into a chosen occupation, rather than being limited to the opportunities available in factory towns.

Erik

12/19/2021 03:16:41 pm

I agree that diversity and competition in a market helps an economy.

Micah Tolman

12/19/2021 03:38:32 pm

Good comment Lizzie. Your point about diversity reminds me of the scripture which teaches there must needs be opposition in all things.

Kendra

12/19/2021 02:40:03 pm

I used to come across towns like this all throughout Wyoming. When we would be traveling to our cousin’s house we would see town built only on one business and that’s it. I don’t think that it would work very well. This sort of reminds me of Leadore. I’m not saying that Leadore’s going to crash because they’re only a farming community, I’m just saying that they are quite dependent on Salmon. They don’t have anywhere to shop for groceries so many of them travel to Salmon to get the things they need for the week. If Salmon became a factory town, it would crash and burn, likely along with Leadore.

Carson Mildon

12/19/2021 02:47:02 pm

I didn't know towns like this were still so common. I like how you gave a personal example of what might be a company town.

Dakota James

12/19/2021 03:13:21 pm

I wasn't aware that company towns existed to this magnitude in today's world, at least in the United States. Like you said, those who live in company towns are ultimately dependent. Not only are the citizens of a town like this dependent on other towns, but they are dependent on the single company and can only hope it does not crash. This is a risky way of life in my opinion. Putting all of one's trust in a single company doesn't sound promising, at least not with today's economy.

Carson Mildon

12/19/2021 02:45:58 pm

While in theory company towns seem as they would work, they do not. It would require the highest of moral standards to not exploit the powers you would have while controlling the economy of an entire population. It is just not a realistic possibility to have a fair and honest company town.

Hailey

12/19/2021 02:50:42 pm

As you suggested, the only way for a factory town to work would be to ensure that the individual(s) that control the economy are morally just people. However, monetary status often leads to greed, which is the driving factor behind all kinds of evil.

Dakota James

12/19/2021 03:09:20 pm

I agree with your claim that company towns are bound to be corrupt. Even if the company was to be completely fair with their employees, the company still benefits more than everyone. I feel like most people understand this and that is why company towns rarely exist anymore, that I know of.

Erik

12/19/2021 03:18:17 pm

I agree that it would take an unrealistic amount of morality to not exploit a monopoly.

Jonah

12/19/2021 03:39:47 pm

I like how you said that. Company towns are one of those things that might sound good on paper, but in reality is not such a great thing.

Robyn Chaffin

12/19/2021 06:43:59 pm

Plus, exploition is a lot easier these days because of social media and it could even be anonymous.

Dakota James

12/19/2021 03:07:27 pm

It seems that the scare of company towns is a much less significant worry today than it was a hundred years ago. However, company towns remind me of monopolies and communism. They are primarily in effect to do just as Jonah said, keep everyone on the same level of poverty and or income. There is no possible benefit for this in today's society that I can come up with. Only one family or business can be successful in company towns. If Salmon were to become a variation of this, I expect most people would move away or boycott it in some way.

Courtney Vennell

12/19/2021 04:53:11 pm

Yeah it’s crazy to think how popular they used to be and now most of them are just ghost towns.

Robyn Chaffin

12/19/2021 06:15:34 pm

I do think that people would just leave. Finding a new job isn't as hard as it used to be.

Erik

12/19/2021 03:15:18 pm

Competition in markets is what allows for companies to be kept in check, without it companies can pick and chose what prices they want for products. This is especially a problem for inelastic products, because they are needed for survival. An example of this could be insulin prices being high, but insulin is still bought because people with diabetes need it to live. Without competition a company that sells inelastic goods can have outrageous prices and still be bought. With company towns a large company could tighten its grip on a market driving out competitors leading to unreasonable prices. Amazon may say company towns are for the benefit of the people, in reality its for their benefit. Once the town has been used to its furthest extent it will be abandoned.

Jonah

12/19/2021 03:42:15 pm

I like how you brought in the more common example of insulin. I also don’t know if I have heard the word “inelastic” before, so I like your verbage.

Nathan

12/19/2021 06:22:47 pm

Good that are a necessity need it have competition because no matter what we will still have to buy it. Should there be laws against becoming a monopoly?

Courtney Vennell

12/19/2021 04:48:34 pm

I think that factory towns are such a weird concept. One whole town where everybody knows everybody and everybody works for the one company in town. What if somebody doesn’t get along with the companies morals and values? I guess they have to pack up everything and move somewhere else do that they can make a living. Personally, I don’t think they are the best thing just based on how many of them have turned out in the past.

Nathan

12/19/2021 06:20:17 pm

Ya it is not really founded on wanting to stay in a place for a long time. Mostly because usually these towns are established to extract a specific fickle resource.

Robyn Chaffin

12/19/2021 06:14:39 pm

Factory towns do not sound like the best idea. The economy would not do well and nowadays people would just quit their job and move away. Moving is a lot easier than it used to be so getting out of a factory town would be the best choice. I don't think factory towns are as big of a deal than they used to be. People are educated now and understand that factory towns didn't work out before and probably won't now.

Ele

12/19/2021 06:59:37 pm

I agree, it can really determine if a family lives in a certain area.

Nathan

12/19/2021 06:17:45 pm

Company towns are basically the equivalent of a monopoly. I believe that saveway is already a monopoly they are the only grocery store so they can control the prices of all the goods. They also own several other businesses like quick stop and the gas station.

Beth

12/20/2021 11:52:54 am

I agree that they are the equivalent of a monopoly

Ele

12/19/2021 06:58:20 pm

Factory towns, like it says in the article have been around for many years. They have brought many interesting ups and downs to their locations. I don’t believe that they are overall amazing. They can determine many things like who lives there, who works, and if the town is successful. One downfall and it could lead to a devastating outcome. This is beneficial to the family or families that own those factories and companies, everyone else is stuck under there demand. There are so many of these situations happening in our world today.

Beth

12/20/2021 11:52:25 am

I agree that one thing cannot determine the lives and success of every person in a town and that each town is also completely different.

Beth

12/20/2021 11:50:28 am

I think that a monopoly, like Jonah said. are only benefiting the people who own them. The rich become richer and the poor become poorer. Towns like this are filled with monopolies and only having access to the town by trains is completely unrealistic. Natural disasters, malfunctions, and other accidents would completely cut off the town from the rest of the world and would be their downfall financially. It would damage everyone involved. The rich and the poor.

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