BIG BUSINESS AND LABOR FREE

Real problem was high protective tariffs that made it possible for big business to rip off American consumers. Prosecuting companies difficult government stops enforcing act. Monopoly is a company that reaps a economic benefit by restricting output and raising prices-No companies acted in this this way-output increased and prices fell with companies accused of being monopolies.

BIG BUSINESS AND LABOR FREE

Sherman Antitrust Act (1890): trust illegal if interferes with free trade-вЂќtrustвЂќ not defined. Sherman Antitrust Act -Government thinks expanding corporations stifle free competition. Critics call industrialists вЂњrobber barons.вЂќ -Industrialists also become philanthropists-Rockefeller-500 million, Carnegie donated 90% of his wealth.Д¬. Standard Oil in decline by normal market competition, before government intervention (under TR). 1870-3% of market by 1880s controlled 90% of refineries and 25% of oil wells. Rockefeller and the вЂњRobber BaronsвЂќ -Rockefeller profits by paying low wages, underselling others- when controls market, raises prices. Industrial Consolidation: Iron & Steel FirmsД«. Rockefeller founds Standard Oil Company, forms trust: *Trustees run separate companies as if one. Holding companies buy all the stock of other companies. Buy all others to form monopolies-control production, wages, prices. Growth and Consolidation -Businesses try to control industry with mergers-buy out competitors. See riches as sign of GodвЂ™s favor to stay in poverty must be lazy, inferior. Notion of individual responsibility in line with Protestant ethic. A New Definition of Success -Idea of survival, success of the most capable appeals to wealthy or those wish to be. Economists use Social Darwinism to justify doctrine of laissez faire (Fr. Social Darwinism, or social evolution, based on DarwinвЂ™s theory.

Principles of Social Darwinism -DarwinвЂ™s theory of biological evolution: the best-adapted survive. Carnegie controls almost entire steel industry. Through horizontal integration merges with competing companies. Uses vertical integration-buys out suppliers to control materials. Hires talented staff offers company stock promotes competition. New Business Strategies -Carnegie searches for ways to make better products more cheaply. Andrew Carnegie one of first moguls to make own fortune-rags to riches.Д«. Debs Industrial Workers of the World (IWW) Mary Harris Jones

Rockefeller Sherman Antitrust Act Samuel Gompers American Federation of Labor (AFL) Eugene V. Define the following terms: Andrew Carnegie Vertical and horizontal integration Social Darwinism John D. Opening Activity: In a paragraph discuss what personal qualities you think a person would need to be a billionaire in todayвЂ™s world.Д¬A Social Science Content Standards: 11.2.1, 11.2.5, 11.2.7, 11.6.5ДЇill-in the notable achievements and setbacks of the labor movement between 1876-1911. Chapter 6, Section 3: Big Business and Labor The expansion of industry results in the growth of big business and prompts laborers to form unions to better their lives.

Big business and labor