Ch. 4.2 The Rise of Big Business

Objectives Analyze the different methods that businesses used to increase profits. Describe the public debate over the impact of big business. Explain how the government took steps to block abuses of corporate power.

Fighting for Profits Corporations: Group ownership Had the same rights as a person

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

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”

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