1. Big Business & Laws Against Them
Andrew Carnegie : Vertical Integration
John Rockefeller : Horizontal Integration

2. Vertical Integration vs. Horizontal Integration
Vertical Integration: Andrew Carnegie : Buys out the suppliers
Horizontal Integration: John Rockefeller : Buys out competition

3. Big Business and the Laws Against Them
Depression Monopoly Interstate Commerce Act (1887) Sherman Anti-Trust Act (1890)
Many producers hoped to eliminate competition by establishing a monopoly. Monopoly power allowed a manufacturer to dictate prices to consumers.
Government did little to regulate big business. They stayed out of business : Laissez-Faire approach.
Laissez-Faire Capitalism = Free Enterprise System
Some felt that the Constitution did not allow Government regulation.
Prohibited unfair practices by Railroads.
States began to pass laws – Congress says States cannot control Interstate Commerce
1st time Congress Regulates Business
Purpose of the Sherman Anti-Trust Act was to stop monopolies from unfair practices that limited competition.
Significant change in the attitude of Congress toward the abuses of big business
The government gave up their laissez-faire approach to big business and began to prohibit unfair business practices. These laws were to first to regulate aspects of business.