Chapter 13 Flashcards
Protective Tariff
- Government tax on imported goods making the pricehigh enough to protect domestic goods from foreign competition
- Drives people to buy domestic goods
Laissez-Faire
- Lenient, as in the absence of government controlover private business
- Businesses can operate under minimal government control
- Economic system that would like this: Capitalism
- Communists or Socialists would not like this
- Cannot happen today (FDA)
Patent
-Official rights given by the government to an inventorfor the exclusive right to develop, use, and sell aninvention for a set period of time
Thomas Edison
- 1876: Inventor
- Supported by J.P. Morgan
- Created a laboratory in Menlo Park, New Jersey where he received thousands of patents for new inventions
- Invented the light bulb
- Lit sections of entire sections of cities within a few years - Others improved upon his work
- George Westinghouse: figured out how to send electricity over long distances
Bessemer Process
- Method developed in the mid-1800s formaking steel more efficiently
- Steel was created by Henry Bessemer
- Used in construction of buildings, bridges
- Skyscrapers become prominent in urban areas
Suspension Bridges
- Bridge that has a roadway suspendedby cables
- Suspensions are made of steel
Time Zones
-Any of the 24 longitudinal areas of the worldwithin which the same time is used
Mass Production
- Production of goods in large numbersthrough the use of machinery and assembly lines
- Any person could join an assembly line because little skill was needed (people easily replaceable)
Corporation
-Company recognized as a legal unit that hasrights and liabilities separate from each of its members
-Shared risk in money loss
-Economic problems occur: people don’t loose any more than they put in
Joint Stock Company: Virginia Company (founded Jamestown)
Monopoly
-Exclusive control by one company over an entireindustry
-You can control your on prices, cut costs, and raise profit
-Hurt the consumer
-Monopolies are illegal in the United States now
Ex: Microsoft Windows
Cartel
- Association of producers of a good or service thatprices and controls stocks in order to monopolize themarket
- Ultimate monopoly
John D. Rockefeller
- Oil Tycoon
- Made deals with railroads to increase his profit
- Other oil people couldn’t ship their oil
Horizontal Integration
-System of consolidating manyfirms in the same business
Ex: Rockefeller formed Horizontal businesses
Andrew Carnegie
- Immigrant
- By the time he was 40: wealthy investor and nations most successful steel maker
- Established many charitable organizations
Social Darwinism
- The belief held by some in the late nineteenthcentury that certain nations and races were superiorto others and therefore destined to rule over them
- Survival of the fittest
Entrepreneur
-Person who invests money in a product orbusiness with the goal of making a profit
Trust
-Group of separate companies that are placed underthe control of a single managing board in order to form amonopoly
Vertical Integration
-System of consolidating firms involvedin all steps of a product’s manufacture
Interstate Commerce Commission (ICC)
- First federalagency monitoring business operations, created in 1887to oversee interstate railroad procedures
- Railroads charged whatever they wanted (hurt consumer)
- You have to publish the rates so consumers know the cost”
- Munn vs. Illinois: Made it constitution to regulate business
Sherman Anti-Trust Act
- 1890 law banning any trust thatrestrained interstate trade or commerce
- Eliminates the possibility of monopolies
Sweatshops
- Small factory where employees have to worklong hours under poor conditions for little pay
- Usually produced clothing
Collective Bargaining
- Process in which employers negotiatewith labor unions about hours, wages, and other workingconditions
- Negotiate as a group
Company Towns
- Community whose residents rely upon onecompany for jobs, housing, and shopping
- Rise up around coal mines
- Company who owned mines would build homes, workers charged rent
- Town stores
- Deduct rent, food costs, supply costs from your pay
Socialism
- System or theory under which the means of productionare publicly controlled and regulated rather thanowned by individuals
- Wealth distributed equally
Knights of Labor
- Uriah Smith Stephens founded it
- Labor union that sought to organize allworkers and focused on broad social reforms
- Strikes failed and eventually group broke up
Terrence V Powderly
- Took leadership of the Knights of Labor (made it public)
- Son of Irish Immigrant
- Worked menial job before becoming mayor of Scranton, Pennsylvania
- Wanted to lead workers out of bondage
- Led strikes with the Knights (failed)
Samuel Gompers
- Formed the American Federation of Labor (AFL)
- Poor English immigrant
American Federation of Labor (A.F.L)
-Labor union thatorganized skilled workers in a specific trade and madespecific demands rather than seeking broad changes
Haymarket Riot
- 1886 labor-related protest in Chicagowhich ended in deadly violence
- Anarchist: Someone who doesn’t believe in a form of government
- Strikes between labor unions and management
- Anarchists threw bombs into Haymark
- Labor unions were blamed for violent (put labor unions in bad light)
Homestead Strike
- 1892 strike against Carnegie’s steelworksin Homestead, Pennsylvania
- Company doesn’t allow them to go on strike
- Leader of factory was shot
Eugene V. Debs
- Led the American Railway Union (A.R.U)
- Worked his way up from a low paying railroad job
Pullman Strike
-Violent 1894 railway workers’ strike whichbegan outside of Chicago and spread nationwide
