1. The Rise of Big Business

2. Corporations ●Started by investors
●Group of people who start a company
●You can only lose what you put in
●Seek to maximize profits and decrease cost of production
●Famous heads of corporations
●J.P. Morgan
●Cornelius Vanderbilt—started in steamboats; made $$$ in RR’s; drove competition out  

3. ●Some form monopolies to control the product
●Buy out a company or force them to quit
●Advantage: set your own prices
●Some formed cartel’s to control a product
●Those who make the same product agree to limit production to keep prices high

4. Horizontal Integration

5. Vertical Integration

6. Horizontal v. Vertical Integration
●Horizontal Integration—create a giant company with low production costs
●John D. Rockefeller: Made $$ in oil by making deals with RR companies
●Vertical Integration—increase power by taking over the phases of production = reduced production costs
●Andrew Carnegie—Steel
●Rockefeller

7. Fighting Big Business ●Smaller businesses raise ?’s
●Federal government decides trusts, cartels and monopolies give too much power
●Social Darwinism—evolves from Darwin’s Origins of Species
●Applies “survival of the fittest” to social world
●Declares that those with wealth are most “fit”
●Used by supporters of laissez-faire and no gvmnt intervention
●Fuels discrimination

8. Government Regulations
●Interstate Commerce Commission: oversees RR’s
●Sherman Antitrust Act: outlaws trusts that restrained interstate commerce or trade

9. Target Goal
Design a business logo and slogan that shows the impact of big business on the American economy in the late 1800’s/early 1900s.