 a type of economy  ownership of the means of production, distribution, and exchange of wealth is made by private individuals or corporations  opposite of public or state-owned wealth (i.e. socialism)

 Resources and businesses are owned by private citizens or corporations (NOT the government)

 Different companies can make the same product  Companies compete with each other to make the best product – at the lowest price

 Goods are made and sold in an effort to make a profit

 the economy will regulate itself through supply and demand, (a.k.a. market forces)  no need for government intervention or regulation (i.e. laissez-faire)

 Idea that individuals, or corporations, should be free to bargain the terms of their own contracts

 Consumers use their purchasing power to help determine what companies should produce  Also… let companies know when they are unhappy with a product by going elsewhere

1. Encourages innovation and invention (i.e. entrepreneurship) 2. Ideally provides the best possible product at the cheapest price 3. Helped the U.S. become one of the strongest & wealthiest nations in the world

1. Potential for greed and corruption = development of monopolies and trusts 2. Misuse/abuse of labor force and the environment 3. Large divide between the rich & poor; growth of slums 4. Workers lost pride in their work

 New form of group ownership  Perfect for expanding risky businesses  Allowed for huge amounts of capital (i.e. money and/or resources) to be pooled together Funded new technology Began new industries Ran larger plants

monopolies = an attempt to control or eliminate any competition that threatens the growth of your business

Consolidation of many firms in the same business

Example: John D. Rockefeller and Standard Oil Company

Corporation that does nothing but buy out the stock of other companies Holding Company – buys controlling stock of operating companies Controls operating companies’ output, prices, etc…

Joining with competing companies in a ‘trust’ agreement Stock is turned over the Board of Trustees Board runs separate companies as one large corporation Stockholders elect of Board of Trustees

Gain control of the many different businesses that make up all phases of a product’s development

Total power over quality and cost of the finished product By 1901, Carnegie owned 80% of all U.S. steel production

 Exploiting workers low wages, long hours, harsh work conditions  Ruthlessly driving competitors out of business  Pro-business governmental policies

ROBBER BARONS?CAPTAINS OF INDUSTRY?