Big Business Rises

Published on Oct 01, 2017

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PRESENTATION OUTLINE

Big Business Rises

Topic 2.2
Photo by le_woolf

Corporations

  • A form of group ownership
  • Number of people share ownership
  • If a corporation experiences financial problems, the investors lose no more than what they invested.
  • Perfect solution for expanding business
  • had the same rights as an individual
  • could buy and sell property, sue in the courts
  • interests could be sold

Corporations are Perfect for business:

  • huge amounts of capital (money)
  • operated in several different areas
  • This is to the railroad and telegraph
  • important to industrial capitalism
Photo by Gamma Man

"30 Rock"

  • Industrialists like J.P. Morgan and John D. Rockefeller were involved in cartels.
  • Cartles
  • business that make the same thing agree to limit their production to keep prices high.
  • Example: Rockefeller and railroads made an agreements making it difficult for his competitors to ship products

HOrizontal Integration

What is it?

Horizontal Integration

  • Merging competing firms into a giant company
  • lower production costs
  • way to gain a monopoly
  • Monopoly is complete control of a product or service
  • with no competition, the business can set prices
  • Rockefeller was the first to use Horizontal Integration
Photo by Great Beyond

Production Management

  • management innovation
  • designed to maximize the efficiency of production process
  • Business owners could meet production needs with fewer workers

Ohio Law

  • Says one corporation can't buy stock in another
  • can create monopolies
  • Rockefeller would find a way around this...
Photo by Austin Ochoa

companies assign their stock to a board of trustees. then comping it into a new corporation.

Photo by Yves Hanoulle

Standard Oil

  • Rockefeller and his Standard oil trust
  • Controlled most of the oil refined in the United States

Andrew Carnegie

Steel Tycoon
Photo by NedraI

Verticle Integration

Carnagie and Rockefeller
Photo by Rob Bye

Vertical Integration

  • gaining control of the different businesses that are involved in all stages of manufacturing.
  • Example: Carnegie owned the coal mines and iron ore fields that provided raw materials for his steel, as well as the sips and railroads that brought the steel to his mills
  • reduced the cost of production

Vs. Captains of Industry

Photo by cdrummbks

small businesses vs Trusts

  • squeezed out of business by joint trusts
  • those smaller that joined trusts received few profits
  • consumers were against high prices
Photo by ralphrepo

backlash against trusts, monopolies, cartels

  • consumers, workers, and the government being to believe business leaders had unfair advantages.
  • Laissez-Faire was too hands off
  • Begin to refer to these leaders as "Robber Barons"
Photo by wbeem

Captains of Industry

good?
Photo by dOOnLoL

Captains of industry

  • some thought industrialists served the country positively
  • Laissez faire policies allowed business to flourish
  • helped free enterprise
  • encouraged railroad, factories, and mills production
  • developed technology
  • stimulated innovation
  • Carnegie, Rockefeller, and Vanderbilt were Philathropists

Captains of industry

  • some thought industrialists served the country positively
  • Laissez faire policies allowed business to flourish
  • helped free enterprise
  • encouraged railroad, factories, and mills production
  • developed technology
  • stimulated innovation
  • Carnegie, Rockefeller, and Vanderbilt were Philathropists
Photo by epicharmus

Cause and effects

Of the ideas of Social darwinsim
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Professor William Graham Sumner

  • Yale professor applied Darwin's evolution theory to society
  • said, "wealth was A measure of one inherent value and those who had it were the most fit"
  • "Survival of the fittest"
  • Supporters of Laissez faire wanted government to stay out of private business
  • Wrong to use public funds to help the poor
  • used to fuel discrimination
  • Said those in poverty were unfit
Photo by Thomas Hawk

Changing Relationships

between Government and Business
Photo by 401(K) 2013

Attempts to regulate business

  • Railroads were fixing rates
  • And Pooling (entering into secret agreements to divide up the nation's freight(.
  • Unfair to consumers
Photo by dbnunley

Interstate Commerce Commission (ICC)

  • Icc put into place to monitor railroad shipping rates
  • BUT: could only watch railroads that crossed state lines
  • Could not make laws to control rR's transactions
Photo by Carney Lentz

Sherman Anti-Trust Act

  • Sentate passed in 1890
  • Outlawed trusts that operated to restrain trade or commerce
  • law was seldom enforced
  • courts favored business owners
  • business said labor unions limited trade
Photo by Mike Wilson

Balance

  • Gov't tried to limit powers to try and create a fair environment
Photo by mikecogh

Melodee Sweeney

Haiku Deck Pro User