Chapter 6 Section 2 Rise of Big Business

Social Darwinism Adapted Charles Darwin’s theory on natural selection and Evolution Society progresses through natural selection The “fittest” would and should rise to positions of wealth and power The “unfit” would fail Any attempt to assist poor or less capable would slow social progress Religious leaders echoed support– wealth became a sign of Christian virtue

Using pp. 201-202 Social Critics Factory life and poor working conditions harmed workers All citizens should own all means of production Government assistance would prevent thebest businesses from rising to the top Business Leaders Individuals should be self-reliant Businesses would prosper in the absence of government interference Government interference would reduce self-reliance ARGUMENTS REGARDING GOVERNMENT’S ROLE IN BUSINESS Using pp. 201-202

“Nature’s cure for most social and political diseases is better than man’s” Nicholas Murray Butler

Corporations At close of Civil War businesses are owned by individuals, families or partnerships Not enough capital to manage new industries Definition Organizers raise money by selling shares of stock in company Stockholders receive % of profits– called dividends Stockholders had little or no part of daily operations

Advantages of corporations Could raise large sums of money Stockholders held limited liability– not responsible for corporations debt Stable organization– not dependent on owner for its existence Problems– where competition was fierce, prices and profits fluctuate

Jay Gould Worked as grocery clerk Invested in railroad stock and earned $77 million

Trusts Corporations band together to form trusts Turn control of business over to board of trustees Trustees run business as one large company Limits overproduction by reducing competition Develops monopolies or complete control over price and quality of product

Grab a book!! P. 208 #2,3,4 Please complete the questions on a sheet of paper DUE FRIDAY, 19.SEP