During the economic depression of 1893, Pullman cut workers' wages by 25–50% while refusing to lower the cost of housing or goods in the company town. This caused severe financial hardship for employees, leading to unrest and calls for intervention.

The strike also brought national attention to Eugene V. Debs, who later became a prominent socialist leader. Furthermore, the widespread outrage over the federal response and the poor treatment of workers helped the labor movement, leading to increased demands for fair wages, better working conditions, and union recognition.

President Grover Cleveland sought to mend relations with labor by establishing Labor Day as a national holiday in 1894, recognizing the contributions of workers to the nation’s economy.

The federal government, under President Grover Cleveland, viewed the strike as a threat to interstate commerce and mail delivery. When negotiations failed, Cleveland sent federal troops to Chicago to break the strike, resulting in violent clashes between strikers and law enforcement. The conflict escalated, leading to the deaths of over 30 workers and the injury of many others.