How Did People Respond To Big Businesses?

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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
    • 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
      • 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
    • 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
          • 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
        • Survival of the fittest people in society
      • 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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