History 18-2 Big Business and Organized Labor - Sheet1

Question 1

How did big business change the workplace and give rise to labor unions?

Answer 1

Big business, motivated by profits, cut costs to eliminate competition. As a result, pay and working conditions deteriorated. Workers formed unions to oppose harsh working conditions, increase wages, and shorten workdays.

Question 2

How did corporations raise capital?

Answer 2

by selling stock

Question 3

What are some advantages of corporations?

Answer 3

Investors take less risk, banks lend more money to corporations, and corporations can raise money from stockholders.

Question 4

How did banks help corporations grow?

Answer 4

by lending them large amounts of money, or capital

Question 5

How did lending money to corporations help banks?

Answer 5

Banks and bankers made huge profits from these loans.

Question 6

What business tactics did Carnegie and Rockefeller use to become successful?

Answer 6

Carnegie gained control of every step of the process of making steel. Rockefeller slashed prices to eliminate competition.

Question 7

What experience taught Rockefeller his first lesson as a businessman?

Answer 7

When he was 12 years old, he loaned a local farm $50 at 7% interest for one year. When the loan was repaid, Rockefeller learned the value of investing money.

Question 8

How were trusts both good and bad for the nation?

Answer 8

Trusts were good for the nation because they helped the economy grow and created jobs. They were bad for the nation because they got in the way of free competition.

Question 9

How did Rockefeller control the oil industry?

Answer 9

Rockefeller shashed prices to eliminate competition.

Question 10

According to Tucker, how does the public benefit from trusts?

Answer 10

The public gets cheaper products.

Question 11

How does the view of monopoly expressed in the p. 616 cartoon differ from Tucker’s view?

Answer 11

It suggests that the monopoly is consuming the nation without feeling, not helping Americans.

Question 12

What dangers and disadvantages did child workers experience?

Answer 12

They worked in hazardous jobs and had no schooling.

Question 13

What is ‘Social Darwinism?’

Answer 13

Those who succeed are more “fit” or deserving than those who do not.

Question 14

Who benefited from the Social Darwinism philosophy?

Answer 14

Big business owners and factory managers benefited because according to the philosophy, they deserved to succeed.

Question 15

Who did not benefit from the Social Darwinism philosophy?

Answer 15

Workers did not benefit because the philosophy said they did not deserve to succeed.

Question 16

What dangers did factory workers face?

Answer 16

lung disease, burns, and death from molten metal

Question 17

What were the goals of labor unions?

Answer 17

higher wages, safer working conditions, and shorter hours

Question 18

Did the government support striking unions?

Answer 18

Not really, because they were disruptive to business and sometimes led to violence.

Question 19

What methods did the AFL use?

Answer 19

collective bargaining; if that failed, its members went on strike

Question 20

How were trusts viewed as both a threat and an advantage to the free enterprise system?

Answer 20

Trusts eliminated competition but also created jobs and lowered the costs of goods.

Question 21

How did changes in the factory system affect workers in the late 1800’s?

Answer 21

It created jobs, but workers labored in bad conditions.

Question 22

Why was there an effort to organize workers into the labor unions?

Answer 22

to improve working conditions

Question 23

What does “adopted” mean in: To raise capital, Americans adopted new ways of organizing business?

Answer 23

In this case, it means to take up a new approach and use it. The root suggests seeing a choice and then taking it out to make it your own.