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Published byEarl Ellis Modified over 8 years ago
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This is capitalism in its purest form. As an economic philosophy it literally means "hands free" or government’s hands off of business. The notion was that the best way for government to help business and promote industrialization was to leave it alone, to do nothing. This meant no regulations, no laws governing business, nothing. This was the idea that it was a person’s responsibility to help themselves. There would be no government safety net, no welfare. This philosophy instilled and reinforced the hard work ethic. This was the application of Charles Darwin's philosophy of "survival of the fittest" to humanity. It was the basic belief that those that deserved and were strongest would become wealthy and those that were poor were obviously not fit enough. This philosophy did not allow for people’s circumstances as an excuse.
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MASS PRODUCTION: Assembly line, standardization of parts (interchangeable parts) more products produced at lower prices WIDE DISTRIBUTION OF GOODS: More money was invested in advertising and distributing products EFFICIENT MANAGEMENT: Capital invested in hiring most capable leaders and researchers greater focus on raising capital for reinvestment ELIMINATION OF COMPETITION: Buyouts and underselling of competitors helped successful corner markets POWER OVER THE CONSUMER: Consumers hurt by raising of prices after monopolies were formed (“price gouging”) EXPLOITATION OF WORKERS: Low wages, long hours, unsafe workplaces INFLUENCE OVER GOVERNMENT: Bribes of politicians for the “buying” of votes
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Terence Powderly
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Samuel Gompers
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