Final answer:
Pullman, Illinois, was an unusual company town created by George Pullman to provide housing for his workers with the aim of increasing productivity and preventing strikes. It eventually became the site of the Pullman Strike in 1894 after Pullman reduced wages without lowering rents and prices in the town.
Step-by-step explanation:
Pullman, Illinois, was an unusual town because it was built by a company to house its workers. This town was envisioned by George Pullman, founder of the Pullman Palace Car Company, and was created to provide employees with decent living conditions thought to improve their productivity and discourage labor unrest. Pullman, Illinois embodied the principles of welfare capitalism, but despite its initial appearance of a model town, it became the center of controversy due to Pullman's strict control over the workers' lives and economic exploitation. The discontent culminated in the Pullman Strike of 1894 when George Pullman reduced wages but refused to lower rents or prices at the company store, leading to a significant conflict assisted by the American Railway Union and its leader, Eugene Debs.