Big Business Flashcards
Monopoly
Dominating an entire market
1870’s companies begin “pooling” so they don’t have to compete with each other
Vertical Integration
A Company buys suppliers to make a specific product
Car maker produces components and sells cars
Horizontal Integration
Buying out competition to form 1 company - not entire market
What are the 3 business methods
Monopoly
Vertical Integration
Horizontal Integration
Trusts
Several companies in one field entrust their stock to a board, board makes decisions
Captains of Industry vs Robber Barrons
Good versus bad in business
Cornelius Vanderbilt
Grabs up land to build Railroads.
Controls the entire industry
John D Rockefeller
Standard Oil – John D Rockefeller 40 competing firms are
forced to join or be destroyed.
Standard controls the market and fixes prices for a maximum profit
Andrew Carnegie
Created a steel monopoly - US Steel,
richest company in the US
JP Morgan
Banker who cornered the market in the growth and spread of electricity
Labor Union
Workers UNITE to protest abuses in low wages, hours and working conditions by forming Unions
Scabs
People who go to work at a company whose workers are on strike –
Hurts the cause of strikers, by keeping business running
Stike
Stop working
Workers go on strike to gain public sympathy and stop companies’ production
Homestead Strike (1892)
Against Carnegie Steel for higher pay
Pinkerton guards brought in, strike turns violent and several people are killed
Pullman Strike 1894
Railroad workers exploited. Strikers put a halt to railroad traffic.
Army brought it to move trains.
