I-2

Question 1

How were corporations suited to take advantage of expanding markets?

Answer 1

Access to huge amounts of capitol, or invested money> fund new technology, enter new industries, or large plants across the country- aided by railroads & telegraph> operated in several different regions

Question 2

What are some of the ways corporations worked to maximize profits?

Answer 2

Decreased cost of producing good or services> paid workers lowest wages or paid as little as possible for raw materials
Advertised products widely, Support research labs, Monopoly & cartel

Question 3

Contrast horizontal and vertical integration.

Answer 3

Horizontal- System of consolidating many firms in the same business
Vertical- Gaining control of the many different businesses that make up all phases of the product development

Question 4

Why did some people begin to view capitalists as ‘robber barons’?

Answer 4

Trust, cartels, monopolies> unfair disadvantage
Small businesses> bought or squeezed out of competition,received few profits from trust, harmed by unfairly high prices, Swindled the poor

Question 5

Why did others begin to view capitalists as ‘captains of industries’?

Answer 5

Factories, steel mills, railroads> jobs
Development of business practices & industrialists support for developing technology> nation/s economy
Stimulating innovation> strong international leaders
Business leaders> important philanthropists- universities, museums, libraries, etc

Question 6

How did the ideas of laissez-faire economics & Social Darwinism factor into the national discussion about big business?

Answer 6

Laissez-faire economics> private business shouldn’t be messed with- interference would disrupt natural selection
Social Darwin> grow strong by allowing the most vigorous members rise to the top, wrong to assist the poor with public funds, fueled discrimination, used poverty-stricken condition as evidence

Question 7

How did the federal government begin to regulate big business? (1887, 1890)

Answer 7

Interstate Commerce Commission> oversee railroad operations, required railroads to send in their records
Sherman Antitrust Act> any trust that restrained trade

Question 8

What impact did the regulations on big business have, at first?

Answer 8

At first, they were seldom forced but began to trend toward federal limitations on corporations’ power