20) Business and Labor in an Era of Industrial Expansion Flashcards
1
Q
Positive Effects of Monopolies
A
- Out of them grew the large, efficient, corporations which made important contributions to the growth of the nation’s economy
- Enabled businesses to keep their sales stead and avoid sharp fluctuations in price and production
2
Q
Vertical Integration
A
- Occurs when a company controls both the production and the distribution of its product
- Andrew Carnegie used vertical integration to gain control of US steel industry
3
Q
Horizontal Integration
A
- Occurs when one company/single person/trust gains control over other companies that produce the same product
- Rockefeller’s Standard Oil Company controlled virtually all the oil refining capability in the US in the late 1800s by using horizontal integration
4
Q
Consequences of Consolidation
A
- Corporations built large, systematically organized factories where work was increasingly performed by machines and unskilled workers
- Corporations introduced Taylorism
- Corporations accumulated vast sums of investment capital
- Corporations used the railroads to help develop national markets for their goods
5
Q
Sherman Antitrust Act (1890)
A
- Prohibited all restraints of trade and unfair methods of Competition
6
Q
Trusts
A
- A type of monopoly in which rival businesses were controlled but not formally owned
- Used to combine several smaller competitors into large business concerns
- Tactic eliminated competition between the firms
- Existed in a number of industries including sugar, whisky, meat, leather, tobacco
7
Q
American Federation of Labor (AFL)
A
- An alliance of skilled workers in craft unions
- Concentrated on issues such as higher wages, shorter hours, better working differences
8
Q
Monopolies
A
- Little regulation of economy by government in 1880s
- Monopolies were larger businesses that ride of their smaller competitors and assumed complete control of their industries
9
Q
Taylorism
A
- System of scientific management developed by Frederick W. Taylor
- Sought to develop a disciplined labor force by eliminating wasted motion
- Corporations introduced Taylorism to increase factory production and lower labor costs
10
Q
Key Labor Trends (1865 - 1900)
A
- Immigrants, women, children significantly expanded the labor force
- Machines increasingly replaced skilled artisans
- Large bureaucratic corporations dominated the American economy
- Corporations developed national and international markets for their goods
11
Q
Negative Effects of Monopolies
A
- Business leaders exercised unfair business practices
- Some acquired so much power that they took unfair advantage of others
- Those who had little or no competition would require their suppliers to supply goods at a low cost, sell finished products at high prices, and reduce the quality of the product to save money
12
Q
Labor Movement Overview
A
- Grew out of the need to protect the common interests of workers
- Organized labor fought for better wages, reasonable hours, and safer working conditions
- Led efforts to stop child labor, give health benefits, and provide aid to workers who were injured or retired
13
Q
Pullman Strike (1894)
A
- When the national economy fell into a depression, the Pullman Palace Car Company cut wages while maintaining rents and prices in a company town where 12,000 workers lived
- Strike halted a substantial portion of American railroad commerce
14
Q
Gospel of Wealth
A
- Promoted by Andrew Carnegie
- Expressed the belief that the rich are the guardians of societies wealth and they have a duty to serve society
- Over his lifetime, Carnegie donated more than $350 million to support libraries, school, peace initiatives, and the arts
15
Q
Social Gospel
A
- A reform movement based on the belief that Christians have a responsibility to confront social problems
- Christian ministers were among the leaders of the Social Gospel Movement
