History 18-2 Big Business and Organized Labor - Sheet1 Flashcards
How did big business change the workplace and give rise to labor unions?
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.
How did corporations raise capital?
by selling stock
What are some advantages of corporations?
Investors take less risk, banks lend more money to corporations, and corporations can raise money from stockholders.
How did banks help corporations grow?
by lending them large amounts of money, or capital
How did lending money to corporations help banks?
Banks and bankers made huge profits from these loans.
What business tactics did Carnegie and Rockefeller use to become successful?
Carnegie gained control of every step of the process of making steel. Rockefeller slashed prices to eliminate competition.
What experience taught Rockefeller his first lesson as a businessman?
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.
How were trusts both good and bad for the nation?
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.
How did Rockefeller control the oil industry?
Rockefeller shashed prices to eliminate competition.
According to Tucker, how does the public benefit from trusts?
The public gets cheaper products.
How does the view of monopoly expressed in the p. 616 cartoon differ from Tucker’s view?
It suggests that the monopoly is consuming the nation without feeling, not helping Americans.
What dangers and disadvantages did child workers experience?
They worked in hazardous jobs and had no schooling.
What is ‘Social Darwinism?’
Those who succeed are more “fit” or deserving than those who do not.
Who benefited from the Social Darwinism philosophy?
Big business owners and factory managers benefited because according to the philosophy, they deserved to succeed.
Who did not benefit from the Social Darwinism philosophy?
Workers did not benefit because the philosophy said they did not deserve to succeed.
What dangers did factory workers face?
lung disease, burns, and death from molten metal
What were the goals of labor unions?
higher wages, safer working conditions, and shorter hours
Did the government support striking unions?
Not really, because they were disruptive to business and sometimes led to violence.
What methods did the AFL use?
collective bargaining; if that failed, its members went on strike
How were trusts viewed as both a threat and an advantage to the free enterprise system?
Trusts eliminated competition but also created jobs and lowered the costs of goods.
How did changes in the factory system affect workers in the late 1800’s?
It created jobs, but workers labored in bad conditions.
Why was there an effort to organize workers into the labor unions?
to improve working conditions
What does “adopted” mean in: To raise capital, Americans adopted new ways of organizing business?
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.
