Ch. 4.2 The Rise of Big Business
description
Transcript of Ch. 4.2 The Rise of Big Business
![Page 1: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/1.jpg)
CH. 4.2 THE RISE OF BIG BUSINESS
![Page 2: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/2.jpg)
OBJECTIVES
1. Analyze the different methods that businesses used to increase profits.
2. Describe the public debate over the impact of big business.
3. Explain how the government took steps to block abuses of corporate power.
![Page 3: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/3.jpg)
FIGHTING FOR PROFITS
• Corporations:• Group ownership• Had the same rights as a person
![Page 4: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/4.jpg)
CONT…
• Corporations worked to maximize profits• Low wages• Monopoly: complete control over product• Cartel: agreement with other businesses to limit
production• Horizontal and Vertical Integration: See pg. 110• Trust: companies assign their stock to a board of trustees
who combine them into a new company. • Way to get around laws
![Page 5: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/5.jpg)
DEBATING ROLE OF BIG BUSINESS
• Robber Barons or Captain of Industry?• Some thought monopolies and cartels were unfair• Some felt they were a positive force for nation
• Social Darwinism • “wealth was a measure of one’s inherent value and those
who had it were the most “fit”
![Page 6: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/6.jpg)
GOVERNMENT IMPOSES REGULATIONS
• Interstate Commerce Commission (ICC)• Oversee railroad operations
• Sherman Antitrust Act• Outlawed trusts “in restraint of trade or commerce
among the several states”• Not enforced• Actually helped businesses
![Page 7: Ch. 4.2 The Rise of Big Business](https://reader033.fdocuments.us/reader033/viewer/2022061517/56816181550346895dd1129d/html5/thumbnails/7.jpg)