 OPENER #4  What were some of the negative effects of the railroads?  Why were railroad reforms unsuccessful?

 Identify management & business strategies that contributed to the success of business tycoons.  Explain Social Darwinism & its effects on society.

 When one company has complete control over an industry.  Control production, quality, wages, and prices.  Eliminated a company’s competition, allowing it to increase profits. ▪ Oligopolies are when a few companies control the industry.

a. The process by which a company owns all parts of its supply chain. b. Gave a company total power over the quality and cost of its product; helped to create a monopoly.

a. The process in which a company buys out, or merges with, its competitors. b. Gave a company control over its competition; helped to create a monopoly.

 Economic theory based on Darwin’s theory of evolution.  -free competition would ensure success or failure in business. ▪ If everyone has equal opportunity then the smartest and hardest working will make the most money.  Glorified big business; discouraged government interference. ▪ The problem is that equality doesn’t exist. Rich kids get better opportunities than poor kids. ▪ Little Jocko’s can’t compete with McDonalds.

 A corporation that does nothing but buy the stock of other companies. ▪ These companies don’t actually make anything, they just own other companies and makes money off of them.  Helped to create monopolies

 A combination of companies owned by one group of people (board of trustees).  When all the companies in an industry are owned by the same people.  Helped to create monopolies

 Term used to describe the ultra-rich tycoons.  Implied that they used unfair and illegal means to get rich.  Turned public opinion against them and their businesses.  Encouraged government regulation of big business

 Open markets will regulate themselves through competition. ▪ If McDonald’s charges too much or makes bad food you’ll go to Burgerking. ▪ If Burgerking doesn’t pay enough employees will go to McDonalds.  Monopolies & Trusts eliminate competition so that there is no regulation.  The Government needs to protect its people.  The gov. must step in to set regulations or create fair trade. ▪ Minimum wage, workers protections, fair prices, etc.

 1890 – law passed to break up Standard Oil Trust.  Made trusts (and monopolies) illegal.  Made it possible (though not easy) to prosecute companies.