part i: why big business is good defending the corporation in american society, 1870-1920
TRANSCRIPT
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Part I: Why Big Business is Good
Defending the Corporation in
American Society, 1870-1920
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Why Big Business?A Growing National Market
Railroad Mileage: 46,000 in 1865, 238,000 in 1909.
Railroads: Faster, More Efficient, Operate in Night and Bad Weather.
National Goods Began Replacing Local Operations (Examples: Swift and Armour Meatpacking Companies)
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Rise of a National Market Created Consumer Culture
Example:Sears CatalogIn 1880s
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Why Big Business Becomes More Productive
Vertical Integration: “All parts of the production process—from raw materials to final product—are controlled by a company.”
Economies of Scale: “When producing more means producing more cheaply on a per unit basis.”
Example: James Bonsack’s Cigarette Machine
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Was the Rise of Big Business Inevitable?
A. Probably Yes
B. No
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Life Before Big Business: The Oil Industry
Oil Fields Oil Transportation
Refineries Retailers
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John D. Rockefeller IntegratedOil Industry
Oil Fields
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John D. Rockefeller IntegratedOil Industry
Oil Fields
Oil Transportation
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John D. Rockefeller IntegratedOil Industry
Oil Fields
Oil Transportation
Refineries
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John D. Rockefeller IntegratedOil Industry
Oil Fields
Oil Transportation
Refineries
Retailers
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Why Rockefeller Was More Productive
Most efficient refining technology. Not dependent on outside suppliers: own
railroad cars, own barrels, own pipelines. Frantic devotion to cutting costs: The glue
example. Economies of Scale: Price of Kerosene Falls
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Big Business Pioneered New Management Techniques
Middle Managers: More Prominent, More Important
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The Virtues of Big Business: Andrew Carnegie
Poor Immigrant from Scotland
Tom Scott & Pennsylvania RR
From PA RR to Carnegie Steel
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Carnegie Demonstrated “Virtues” of Big Business
Opportunity to All (Immigrants)
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Carnegie Demonstrated “Virtues” of Big Business
Opportunity for All (Immigrants)
Continuous Technological Change
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Carnegie Demonstrated “Virtues” of Big Business
Opportunity for All (Immigrants)
Continuous Technological Change
Lower Prices Revolutionize Economic Life (Survival of the Fittest)
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Lower Prices Generally Benefit …
A. The Rich
B. The Lower and Middle Classes
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Innovation Keeps Coming
Oil
Steel
Automobile
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“Giving it All Away”
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Part II: Why Big Business Was Bad
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Rich Societies Are Generally Happier than Poor Societies
A. Yes
B. No
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Why Big Business Was Bad
Exploitation of Workers
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Why Big Business Was Bad
Exploitation of Workers
Rise in Inequality
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Why Big Business Was Bad
Exploitation of Workers
Rise in Inequality
Plight of Small Producers (End of Free Labor Ideology?)
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Why Big Business Was Bad Exploitation of
Workers
Rise in Inequality Plight of Small
Producers (End of Free Labor Ideology?)
Big Business and Political Corruption