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Unit VI – A Growing America

Unit VI – A Growing America. Chapter 19 Section 2 – Big Business Lecture Station. Big Business. The Big Idea The growth of big business in the late 1800s led to the creation of monopolies. Main Ideas

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Unit VI – A Growing America

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  1. Unit VI – A Growing America Chapter 19Section 2 – Big Business Lecture Station

  2. Big Business • The Big Idea • The growth of big business in the late 1800s led to the creation of monopolies. • Main Ideas • The rise of corporations and powerful business leaders led to the dominance of big business in the United States. • People and the government began to question the methods of big business.

  3. Main Idea 1: The rise of corporations and powerful business leaders led to the dominance of big business in the United States. • Many entrepreneurs. • A new type of business organization developed called the corporation • Corporate leaders. • Successful corporations. • Corporations encouraged. • laissez-faire capitalism • Social Darwinism • Trusts • Mass Marketing

  4. Advantages of Corporations and Stockholders. • 1. Stockholders are not responsible for the debts of the corporation. • 2. If the corporation fails the stockholders only lose the money they invested. Invest in strong companies that will survive. • 3. Stockholders can sell their stock to whomever they wish when ever they wish. • 4. By 1900 over 100 million shares were traded on the NYSE every year.

  5. The Rise of Big Business • Terms: • Entrepreneurs- Risk takers who started new ventures in free enterprise. • Capitalism- Free Enterprise. Economic system based on ownership of land, factories, • Laissez-faire- companies operating without government interference. • Social Darwinism- competition by the species, survival of the fittest. Natural selection. Strong business prosper, weak ones fail. Society should not interfere with business. Gov’t stay out. • Tycoons- businessman with great wealth and power. • Robber Barons- destroying competitors with tough tactics • Captains of Industry- Using business skills to strengthen the economy.

  6. Business Leaders • Andrew Carnegie • Used vertical integration • Carnegie Steel • Gospel of • Wealth • John D. Rockefeller • Standard Oil Company • Developed horizontal integration, • Formed a trust • Rebates Leland Stanford

  7. Industrial Tycoons Made Huge Fortunes

  8. Rock Oil Lights the World • First uses- • Drilling- • 1859- George Bissell, Edwin Drake and Titusville, Penn. • Wildcatters- • 1901- Boom in Texas lasts 20 years. • Cleveland, Ohio (railroads and rivers) and Rockefeller • Pipelines, Oil lamps • Rebates.

  9. Dominance of Big Business • What role do stockholders play in corporations? • Why are corporations advantageous for stockholders? • Why do you think Andrew Carnegie was one of the most admired businesspeople of his time?

  10. Main Idea 2:People and the government began to question the methods of big business. • Big business as a problem in the late 1800s. • Concerned about • Social Darwinism. • Rich should help the poor. • Carnegie, Rockefeller, Stanford, and other business leaders gave away large sums of money to charities.

  11. Monopolies • Business competition became fierce • Pools:. • Holding companies: • Trusts:

  12. The Antitrust Movement • Critics said many businesses earned their fortunes through unfair business practices. • Used size and strength • Powerful trusts sold goods and services. • Monopoly,or total ownership of a product or service. • The Sherman Antitrust Act passed in 1890. • The act did not. • Corporations and trusts continued.

  13. Questioning the Methods of Big Business • What is Social Darwinism? • Why did some business leaders give money to charity? • Why did critics oppose the practices of big business? • Was the Sherman Antitrust Act successful in curbing the power of wealthy trusts? Why?

  14. Section 2 Activity Write at least three sentences on the back of the Sect. 2 homework sheet on why these men were so important in U.S. History?

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