In 1869, a group of Massachusetts reformers persuaded the state to try a simple idea: counting.
The Second Industrial Revolution was belching its way through New England, teaching mill and factory owners a lesson most M.B.A. students now learn in their first semester: that efficiency gains tend to come from somewhere, and that somewhere is usually somebody else. The new machines weren’t just spinning cotton or shaping steel. They were operating at speeds that the human body—an elegant piece of engineering designed over millions of years for entirely different purposes—simply wasn’t built to match. The owners knew this, just as they knew that there’s a limit to how much misery people are willing to tolerate before they start setting fire to things.
Still, the machines pressed on.
So Massachusetts created the nation’s first Bureau of Statistics of Labor, hoping that data might accomplish what conscience could not. By measuring work hours, conditions, wages, and what economists now call “negative externalities” but were then called “children’s arms torn off,” policy makers figured they might be able to produce reasonably fair outcomes for everyone. Or, if you’re a bit more cynical, a sustainable level of exploitation. A few years later, with federal troops shooting at striking railroad workers and wealthy citizens funding private armories—leading indicators that things in your society aren’t going great—Congress decided that this idea might be worth trying at scale and created the Bureau of Labor Statistics.
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