Railroads, Steel and Oil 6.1 Flashcards
(20 cards)
Corporations
Companies or Goups of People that INVEST in a business, then SHARE ITS PROFITS
Depression
A Severe and LONGTERM ECONOMIC DECLINE. Characterized by 1) a number of business failures 2) reduced industrial output 3) high unemployment
Recession
A relatively SHORT-LASTING slowdown of economic growth. Often paart of a NORMAL business cycle.
Robber Barons
Railroad Industry Leaders who became known for their ruthless methods against competitors. (Like Cornelius Vanderbilt and Jay Gould)
Interstate Commerce Act
A law that established a commission that supervised and regulated the nations railroads, investigated complaints about business practices, and sued companies that violated regulations.
Bessemer Process
The use of forced air to remove impurities, such as carbon from iron, which transforms iron into steel.
Vertical Integration
A company takes control of ALL phases of production, from start to finish.
Horizontal Integration
Purchasing other companies that offer the same goods and services to reduce the # of competitors and achieve control within an industry.
Monopoly
The complete control of an industry or the market for a service or product
Social Darwinism
19th Century Philosophy: Argued human social history could be understood as a struggle between the wealthy and the poor, with the strongest and fittest invariably triumphing.
Trust
A company managed by members of a board rather than owners or stockholders.
Muckrakers
Investigative journalists of the early 1900s who exposed misconduct by powerful organizations of people.
How were WORKERS affected by economic downturns?
Many workers lost their jobs.
The companies used cash reserves during these times, and fired workers as needed to save money.
How did some states respond to robber barons?
Some states set up commissions or agencies of experts to investigate the railroad practices and to settle issues of rates, finance and service.
Andrew Carnegie
Dominated the Steel Industry
Believed in Social Darwinism, but also believed the wealthy were bound by duty to share their wealth with society.
Philanthropy
Promoting the welfare of others through financial support.
John D. Rockefeller
Oil tycoon.
Founded Standard Oil Company.
Robber Baron because he used price- cutting to lure constomers and horizontal integration to dominate the market.
How are the tactics and actions of the industrial leaders similar?
Used tactics to dominate the industry
Vertical Integration
Horizontal Integration
Price-cutting
Also contributed large sums of money to philanthropic organizations.Ida Tarbell
A Muckraker, she wrote a series of articles called The History of the Standard Oil Company, exposing the negative affects Rockefeller’s business practices had on his workers. (Paid poorly, many living in poverty)
Characteristics of the 2nd Industrial Revolution
1) Government’s increased role in social and business affairs. 2) Ownership in company stocks became a common practice.
