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October 11, 2011 Skip Line, date, copy questions, answer

October 11, 2011 Skip Line, date, copy questions, answer. OPENER #4 What were some of the negative effects of the railroads? Why were railroad reforms unsuccessful?. Big Business & Labor. Objectives.

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October 11, 2011 Skip Line, date, copy questions, answer

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  1. October 11, 2011Skip Line, date, copy questions, answer • OPENER #4 • What were some of the negative effects of the railroads? • Why were railroad reforms unsuccessful?

  2. Big Business & Labor

  3. Objectives • Identify management & business strategies that contributed to the success of business tycoons. • Explain Social Darwinism & its effects on society.

  4. Monopoly • When one company has complete control over an industry. • Control production, quality, wages, and prices. • Eliminated a company’s competition, allowing it to increase profits. • Oligopolies are when a few companies control the industry.

  5. Vertical Integration • The process by which a companyowns all parts of its supply chain. • Gave a company total power over the quality and cost of its product; helped to create a monopoly.

  6. Horizontal Integration • The process in which a company buys out, or merges with, its competitors. • Gave a company control over its competition; helped to create a monopoly.

  7. Social Darwinism • Economic theory based on Darwin’s theory of evolution. • -free competition would ensure success or failure in business. • If everyone has equal opportunity then the smartest and hardest working will make the most money. • Glorified big business; discouraged government interference. • The problem is that equality doesn’t exist. Rich kids get better opportunities than poor kids. • Little Jocko’s can’t compete with McDonalds.

  8. Holding Company • A corporation that does nothing but buy the stock of other companies. • These companies don’t actually make anything, they just own other companies and makes money off of them. • Helped to create monopolies

  9. Trust • A combination of companies owned by one group of people (board of trustees). • When all the companies in an industry are owned by the same people. • Helped to create monopolies

  10. “Robber Barons” • Term used to describe the ultra-rich tycoons. • Implied that they used unfair and illegal means to get rich. • Turned public opinion against them and their businesses. • Encouraged government regulation of big business

  11. Free trade vs Big Business • Open markets will regulate themselves through competition. • If McDonald’s charges too much or makes bad food you’ll go to Burgerking. • If Burgerking doesn’t pay enough employees will go to McDonalds. • Monopolies & Trusts eliminate competition so that there is no regulation. • The Government needs to protect its people. • The gov. must step in to set regulations or create fair trade. • Minimum wage, workers protections, fair prices, etc.

  12. Sherman Anti-Trust Act • 1890 – law passed to break up Standard Oil Trust. • Made trusts (and monopolies) illegal. • Made it possible (though not easy) to prosecute companies.

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