1. Chapter 6 Section 2 Rise of Big Business

2. REVIEW  What does laissez-faire mean?  Explain the philosophy of Marx  How was Darwin’s theory of evolution applied to society?

3. ARGUMENTS REGARDING GOVERNMENT’S ROLE IN BUSINESS Social Critics Factory life and poor working conditions harmed workers All citizens should own all means of production Government assistance would prevent thebest businesses from rising to the top Business Leaders Individuals should be self- reliant Businesses would prosper in the absence of government interference Government interference would reduce self-reliance Using pp. 201-202

4.  “Nature’s cure for most social and political diseases is better than man’s” Nicholas Murray Butler

5. Corporations  At close of Civil War businesses are owned by individuals, families or partnerships  Not enough capital to manage new industries  Definition Organizers raise money by selling shares of stock in company Stockholders receive % of profits– called dividends Stockholders had little or no part of daily operations

6. Advantages of corporations  Could raise large sums of money  Stockholders held limited liability– not responsible for corporations debt  Stable organization– not dependent on owner for its existence  Problems– where competition was fierce, prices and profits fluctuate

7. Jay Gould  Worked as grocery clerk  Invested in railroad stock and earned $77 million

8. Trusts  Corporations band together to form trusts  Turn control of business over to board of trustees  Trustees run business as one large company  Limits overproduction by reducing competition  Develops monopolies or complete control over price and quality of product

9. Chapter 6 Section 2 GRAB A BOOK P. 208 - #2,3