sept. 18 notes (big business)
TRANSCRIPT
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Major belief in the late 1800s
“Social Darwinism”
“Survival of the fittest” in the business world People who are good at business will succeed
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The businesses that “survived” were those that
killed their competition!
PROBLEM…
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Entrepreneurs in the late 19th Century (1800s)
organized production to make increasing profit, leading to big business
REMEMBER…
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Uniting companies in the SAME industry
Horizontal Consolidation
Merger ~ buy out other companies
Trust ~ group of people runs separate companies as one large corporation
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One company controls an industry’s production, quality, wages, and prices
MONOPOLY
Caused by mergers/trusts Created in order to make more and more profit
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Putting together companies from DIFFERENT industries
Vertical Integration
Buy out suppliers in order to control the quality & price of your product
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Loss of competition leads to high prices
Effects of Monopolies
Poor working conditions
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Monopoly ownersRobber Barons
Controlled the market to increase their own wealth
Didn’t share wealth with employees or consumers
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Monopoly ownersRobber Barons
RESULT: wealth & resources were controlled by just a few people
Very few very wealthy people & many poor people
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Examples…Robber Barons
U.S. Standard Oil
John D. Rockefeller
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Examples…Robber Barons
Banking Industry
J.P. Morgan
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Examples…Robber Barons
Carnegie Steel
Andrew Carnegie
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1890~ Sherman Anti-trust Act
Government Response
Made monopolies illegal
Law was unsuccessful because it was not easy to enforce and was not upheld by the Supreme Court
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