How Did People Respond To Big Businesses?
- Created by: Helen Morley
- Created on: 15-09-13 15:23
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- How Did People Respond To Big Businesses?
- Background
- Market was Unstable
- Number of Entrepeneurs Increased
- Dominated Organisation and Development of Social Industries
- Controlled majority of industry
- JOHN D ROCKEFELLER
- Owned 90% of Oil Industry
- Developed the Idea of a Trust (Horizontal Integration)
- Smaller Companies are controlled and regulated by a Larger Company
- Could control distribution and prices across the US
- Founder of Standard Oil
- Vertical Integration
- "pay no-one a profit"
- Process by which a businessman gains control of an industry by buying both the inputs and the outputs
- ANDREW CARNEGIE
- Dominated the Steel Industry
- CORNELIUS VANDERBILT
- Dominated the Railroads
- Background
- Background
- Market was Unstable
- Number of Entrepeneurs Increased
- Dominated Organisation and Development of Social Industries
- Controlled majority of industry
- JOHN D ROCKEFELLER
- Owned 90% of Oil Industry
- Developed the Idea of a Trust (Horizontal Integration)
- Smaller Companies are controlled and regulated by a Larger Company
- Could control distribution and prices across the US
- Founder of Standard Oil
- Vertical Integration
- "pay no-one a profit"
- Process by which a businessman gains control of an industry by buying both the inputs and the outputs
- ANDREW CARNEGIE
- Dominated the Steel Industry
- CORNELIUS VANDERBILT
- Dominated the Railroads
- Negative Response
- How Did People Respond To Big Businesses?
- Robber Barons
- Exploited workers
- Eliminated competitors - drove them out of business
- Afraid of Monopoly
- Situation where the producer of a particular product controls the market for that product by eliminating all competitors
- Not only exploiting the workers but also the consumers - they had the ability to control all the prices of that product and wages of their employers
- Many felt that bgger businesses were removing opportunities for others by dominating the market
- People argued that Industrial Progress did not guarantee prosperity
- Imbalance of Power
- Growing distance between worker and employer
- harder to protect the workers rights
- Growing distance between worker and employer
- Unjustified Power
- bigger businesses had greater purchasing power - they could strike better deals with suppliers
- Smaller businesses felt threatened
- Farmers saw it as a discriminatory practice
- Big businesses could negotiate reductions on bulk with railroads
- Farmers saw it as a discriminatory practice
- Smaller businesses felt threatened
- bigger businesses had greater purchasing power - they could strike better deals with suppliers
- How Did People Respond To Big Businesses?
- Positive Response
- Produced more and better products
- Accelerated the rise of middle class citizens due to more job vacancies
- Created wealth and jobs that benefitted many people
- Stabilised the market for products in constant demand (e.g. food)
- Made America a serious competitor in the Global market
- Introducing new techniques and methods of production
- Social Darwinism
- Negative Response
- Robber Barons
- Exploited workers
- Eliminated competitors - drove them out of business
- Afraid of Monopoly
- Situation where the producer of a particular product controls the market for that product by eliminating all competitors
- Not only exploiting the workers but also the consumers - they had the ability to control all the prices of that product and wages of their employers
- Many felt that bgger businesses were removing opportunities for others by dominating the market
- People argued that Industrial Progress did not guarantee prosperity
- Imbalance of Power
- Growing distance between worker and employer
- harder to protect the workers rights
- Growing distance between worker and employer
- Unjustified Power
- bigger businesses had greater purchasing power - they could strike better deals with suppliers
- Smaller businesses felt threatened
- Farmers saw it as a discriminatory practice
- Big businesses could negotiate reductions on bulk with railroads
- Farmers saw it as a discriminatory practice
- Smaller businesses felt threatened
- bigger businesses had greater purchasing power - they could strike better deals with suppliers
- Robber Barons
- Survival of the fittest people in society
- Negative Response
- Used wealth to build institutions that could benefit people (e.g. Libraries, Parks, Hospitals, ect.)
- Overproduction
- Fluctuating Prices
- Periodic Economic Depressions
- "Long Depression" 1873-79
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