Corporation became an important form of business

This preview shows page 14 - 16 out of 30 pages.

Corporation- Became an important form of business organization in the U.S .after the Civil War. Has advantage because corporations could generate large amounts of capital(money and materials needed to run a business) with limited liability (risk/responsibility) for investors. Major goal was to consolidate (unite into one) the manufacture and distribution of products. Used mechanizationand the division of laborwhich made it difficult for smaller industries to be competitive. Increased efficiency in production methods. Social Darwinism- Theory which believed that the growth of large business at the expense of others was merely survival of the fittest (the stronger businesses will succeed and the weaker one will fail). Used tojustifythe formation of business monopolies. Used to explain the differences in income between the rich and poor. Believed that economic success comes to those who are the hardest working and most competent. Laissez-faire Capitalism - Economic policy which argues that government should limit any interference in the economy(the government should leave the economy alone). Free Enterprise System- investments and profits are controlled by individuals. Pricesof products are determined bythe interaction of supply& demand/ marketplace. Claimed that government regulation of businesswould be harmfulto economic growth.
13 Influenced the growth of the U.S. economy during the late 19thcentury, which led to economic domination by business trusts. EX: Standard Oil Trustwas intended to control pricesand practices in oil refining. Rise of Big Business (1865-1900) Federal Government followed laissez-faire economic policy. Trusts and monopolies were created by entrepreneurs to maintain control of the market. Robber Baron- Term used during the Gilded Ageto characterize leaders of big businesswho used ruthless tacticswhen dealing with competitors. Ex: John D. Rockefeller, J.P. Morgan, Cornelius Vanderbilt. Gilded Age- Mark Twainlabeled the late 1800’s the Gilded Ageto describe the extremes of wealth and poverty (big differences between the rich and the poor). Urbanization- Rural (countryside) residents move to urban (inner city) areas in search of jobs. Size of cities increase. Caused by industrialization. How the Other Half Lives- Book by Jacob Riisthat exposed the living conditions of urban slums (working-class, inner-city neighborhoods). Exposed the desperate lives of poor people to the general public in the U.S. Urban middle class increased the most as a result of the Industrial Revolution. Working Conditions -Rapid industrial growth leads to shiftfrom rural to urban lifestyle, widespread use of child labor, and growth of tenements & slums (overcrowded inner city neighborhoods located near factories).

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture