Big Business

Question 1

how did Hayes show that he supported big business in 1877?

Answer 1

• sent military in to the rail strike

- digit because big businesses voted for republicans

Question 2

how was avalibility of the capital important?

Answer 2

• entrepreneurs need money to develop businesses

- profits from civil war encourage stock markets

Question 3

what was the return of the stock exchange in 1865?

Answer 3

6 billion

2nd largest by 1890

Question 4

how did businessmen have complete freedom during the guided age?

Answer 4

• no tax on profits
• no restrictions on working hours
• few legislations passed to restrict big business

Question 5

how did the federal governments policies of the guilder age help business expansion?

Answer 5

make foreign goods more expensive

- tariffs high as 50%

Question 6

what’d no trade unions mean during the gilded age?

Answer 6

• bosses free to manage work force

- had support of authorities who sent in troops to help

Question 7

what were corporations and trusts?

Answer 7

legal methods of avioding state laws

- to monopolise markets (caused by laissez faire)

Question 8

how did carnegie dominate the US steel industry?

Answer 8

• cheap steel with bessemer converter
• rapid expansion caused by vertical integration
• keep prices low and invest in plants and equipment
• refused unions in factories

Question 9

how did vanderbilt make his fortune?

Answer 9

invested in rail boom of 1860’s

• used standard track gage
• 100 million when he died in 1877 (richest in america)

Question 10

how did railroads cause economic expansion?

Answer 10

allowed people to start businesses

• otherwise wouldn’t have been enough demand
• shipment to greater areas

Question 11

what was the 1873 depression caused by?

Answer 11

• poor banking like jay cooke investing deposits badly (northern pacific rail)
• caused other companies and banks to collapse
• stock exchange close for 20 days
• factories close - 1 million unemployed

Question 12

what was the boss system in new cities?

Answer 12

• mayors often courrupt

- sell rights to transport, buildings etc.. to highest bidder

Question 13

what happened when small farmers tried to compete with big business?

Answer 13

• failed to compete

- south soon too dependant on single cash crops like cotton

Question 14

how were carnegie and rockefeller philanthropists?

Answer 14

• rockefeller donate 550 million to medicine, education and blacks

Question 15

how much did carnegie sell his empire to JP Morgan for in 1890?

Answer 15

480 million

Question 16

how did carnegie monopolise steel production?

Answer 16

vertical intergraton
(controlled all processes of production to lower costs and increase profits)

Question 17

when did rockefeller do in 1862?

Answer 17

• first oil refinery

Question 18

what did rockefeller do in 1870?

Answer 18

standard oil (said to resume industry)

Question 19

what did rockefeller do in the 1880’s?

Answer 19

control 80% of US steel production

Question 20

what was rockefeller in 1913?

Answer 20

worlds first billionaire

Question 21

what was rockefeller fortune in 1899?

Answer 21

200 million

Question 22

what were good things about individuals controlling the market?

Answer 22

• no disputes
• no drastic price change
• more philanthropy
• larger profits
• lots of jobs
• security of industry

Question 23

what are bad things about individuals controlling the market?

Answer 23

• no competition/ innovation
• biased decisions
• exploit workers
• small businesses destroyed

Question 24

when was the first national rail strike?

Answer 24

1877

Question 25

when was the granger movement?

Answer 25

1867

Question 26

when was Munn vs Illinois and what was it?

Answer 26

1877 | on little people side rather than big business

Question 27

when was shorn anti trust act?

Answer 27

1890

Question 28

what were the main causes of big business?

Answer 28

- rails - immigration - tycoons - social darwinism - population growth - laissez faire gouvernement - isolationism (high tariffs) - trusts and corporations - civil war - tech

Question 29

what are the positive impacts of big business?

Answer 29

- economic boom - more jobs - cities grow - philanthropy - immigration

Question 30

what are the negative impacts of big business?

Answer 30

- exploit workers - push out small businesses - pay gap - bad working and living conditions - lack of innovation

Question 31

what did the E.C knight vs US case show?

Answer 31

- sherman anti trust ineffective - 98% monopoly - ruled as not a control of trade

Question 32

by 1904, how much of the industry did the largest companies control

Answer 32

largest 4% of companies produce 59% of industry

Question 33

what did the 1893 depression cause?

Answer 33

rise of progressivism | reading rail company caused the crash

Question 34

why did progressivism emerge?

Answer 34

- need to regulate big business | - because of monopolies and hostilities to individuals