1. Chapter 6 Section 2
Rise of Big Business

2. 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

3. 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

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

5. 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

6. 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

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

8. 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

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