1. Ch. 4.2 The Rise of Big Business

2. 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.

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

4. 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

5. 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”

6. 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