Chapter 13 Section2
-
Upload
brandon-gray -
Category
Documents
-
view
28 -
download
0
description
Transcript of Chapter 13 Section2
![Page 1: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/1.jpg)
Chapter 13 Section2
The Growth of Big Business
![Page 2: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/2.jpg)
Social Darwinism
• Survival of the fittest• Believed in little
government interference
![Page 3: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/3.jpg)
How did the theory of social Darwinism affect the government’s relationship to big business?
• It encouraged government to take a hands-off approach to big business
![Page 4: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/4.jpg)
Oligopoly
• Occurs when to cost of starting a certain type of business is high
![Page 5: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/5.jpg)
Monopoly
• When a business gains complete control of a product or service
![Page 6: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/6.jpg)
Cartel
• A loose association of businesses that make the same product
![Page 7: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/7.jpg)
Andrew Carnegie
• Founded first plants to use Bessemer Process to produce steel
![Page 8: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/8.jpg)
Gospel of Wealth
• A personal philosophy of Andrew Carnegie
• Became a movement of the early 20th century
![Page 9: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/9.jpg)
Gospel of Wealth
• Carnegie donated money to build 3,000 libraries
• Supported art and research institutes
![Page 10: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/10.jpg)
Vertical Consolidation
• Business tactic of Andrew Carnegie
![Page 11: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/11.jpg)
Economies of Scale
• As production increases, the cost of each item produced is lower
![Page 12: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/12.jpg)
John D. Rockefeller
• Founded Standard Oil in 1870
![Page 13: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/13.jpg)
Horizontal Consolidation
• Business tactic of Rockefeller
• Bringing together many firms in the same business (taking over your competitors)
![Page 14: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/14.jpg)
How did methods such as vertical and horizontal consolidation, and factors such as economies of scale help companies dominate their markets?
• Through horizontal consolidation, companies purchased competing companies
• Through vertical consolidation and economies of scale, companies lowered production costs so much that other companies could not compete
![Page 15: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/15.jpg)
Trust
• Different firms in the same business (oil for example) being run as one company by a board of trustees
![Page 16: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/16.jpg)
Sherman Antitrust Act
• Outlawed any combination of companies that restrained interstate trade or commerce
![Page 17: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/17.jpg)
Why did the Sherman Antitrust Act seek to stop big business from forming trusts?
• Trusts threatened fair competition in industry
• Trusts may cause prices to rise due to lack of competition
![Page 18: Chapter 13 Section2](https://reader036.fdocuments.us/reader036/viewer/2022082611/56812cf1550346895d91be0d/html5/thumbnails/18.jpg)
What were some features of the new big businesses?
• Large amounts of capital
• Wider geographic span• Broader range of
operations (they make more than one thing)