Midterm Review Flashcards
1
Q
What are fixed cost and fixed cost industries?
A
An industry that takes a lot of expense to get it started, but then basically functions by itself, despite how many items are involved
Railroads, steamships, movie theaters, Big universities (500 students for one professor)
2
Q
Federal Income tax
A
1913
3
Q
Adamson Act
A
1916: Under Wilson
RR workers can only work 40 hours a week,
Working overtime=getting paid for a time and a half
4
Q
Variable costs and variable cost industries
A
Each new job=more work. Lawn mowing and and construction company, Hillsdale
5
Q
America was prosperous despite progressive era
A
- Didn’t affect most industries
2. The power of entrepreneurs can often offset government intervention. (Henry Ford, Wright Brothers, and Gillette)
6
Q
Airplane industry
A
Entrepreneurs and government together
Private: helping others and making money
Govt. subsidy: If Europe invents the airplane, then they could fly over and drop a bomb. (must reallocate resources to that which is best for the national interest)
The govt. chose Langley
7
Q
Langley
A
Govt. subsidized to create an airplane Thrust theory (thrust the plane in the air) fails
8
Q
Farmers and smaller merchants complaint of RR rates
A
Complained about paying more about
9
Q
Wright Brothers
A
Flew their first airplane 9 days after Langley’s failed flight
This invention offset the regulations of govt.
10
Q
King Camp Gillette and the Razor Blade
A
1855-1932
Wrote “The Human Drift”: needed everyone in the world to live 60 miles within Niagra Falls (water power)
Invented the razor blade (filled a niche)
Razor and 12 blades=$5: expensive
Economies of scale: lower price
Changed fashion b/c it became more efficient to shave
Wrote “The People’s Corporation”: Everyone should move to TX
11
Q
Who were the purifiers and the separatists?
A
The purifiers wanted to stay in England and purify the church and government
The separatists believed that the English church wouldn’t change so wanted to go to America.
12
Q
How did Bradford split up the land in America?
A
The first year he wanted the community to share the entire land, but that failed miserably.
Second-year: privatization of land. Successful.
13
Q
What most economists look at when considering a new policy?
A
The immediate effects and the long term effects
14
Q
What was Bastiat’s idea of the broken window?
A
There’s no advantage to destruction. The man with a broken window loses out because he has to replace something instead of adding to his wealth.
This principle relates to wars.
15
Q
What is the Myth of the union?
A
Machines replace workers and therefore technology is bad.
16
Q
Why is Technology good?
A
Machines produce more, and therefore more men are hired.
People naturally attempt to reduce the effort it requires to accomplish a given result.
Explanation for the world’s increase in population
17
Q
What happens if a tariff is repealed?
A
It may hurt one business, but will overall create better or cheaper goods for consumers. It would help both countries.
18
Q
What is a tariff?
A
A government regulation that benefits the producer at the expense of the consumer. They indirectly limit the amount outsiders can buy from America. It is the repelling of an invasion of foreign products.
19
Q
What is the consequence of price-fixing?
A
It raises the demand for the commodity and lowers the supply of it. Leads to a shortage.
20
Q
What was the difference between a political entrepreneur and a market entrepreneur?
A
A political entrepreneur use federal aid and vote buying to create a successful business. Market entrepreneurs created superior products at a lower cost without government funding
21
Q
What did the gibbons the Ogden case do?
A
It Eliminated the Fulton monopoly and said that federal government could regulate interstate commerce. It also introduced competition into the Steamship industry.
22
Q
Who was Edward Collins?
A
The man who owned the steamship government-subsidized company. Was economically wasteful.
23
Q
Hey Vanderbilt cut prices on his steamship?
A
- No insurance on this fleet 2. Spent less on the repairs and maintenance 3. Invited second and third class passengers to ride his steamship.
24
Q
How did government subsidies hurt companies?
A
It created overall inefficiency. It made the owner not have to innovate and protected him from judgment errors that would have ruined his competitors.
25
Who was Cornelius Vanderbilt?
Steamship entrepreneur. Beat out Collins and his government regulated company. First man to be worth $100 million.
26
How did John Winthrop set up the land in America?
He privatized the land and the neighbors volunteered for the betterment of the community.
Very tight knit family
27
What were Adam Smith's ideas on economic wealth creation?
Making products are providing services with the goal of personal gain. rational self interest. Society would benefit as a whole if people thought this way.
28
According to Adam Smith, how does self-interest create competition?
All sellers want to sell high and all buyers want to buy low so competition creates a specific price.
29
What Did Joseph schumpeter believe about entrepreneurship?
It was the driving force and economic progress. They take a leap of faith to pursue a vision. They also take a personal risk.
30
How do others benefit from entrepreneurs' failure?
First, I jejunoileal failures provide critical information about others wants and needs. Second business failure frees up resources for the use of other businesses. Third consumers profit.
31
What is a corporation and how does it play its role in the economy?
It is a large multiunit business enterprise with many employees. Corporations are more important to the economy but small businesses create competition for these larger businesses.
32
Why is war not a blessing to the economy?
You create jobs, but you don't create wealth. You arent moving the global economy forward. Opportunity cost-if we are making bombs, we aren't making cars. Creation of jobs-money to support jobs could have been allocated someplace else or to pay private workers. Things are being destroyed, and therefore has no net gain
33
What is the difference between the revenue tariff and a protective tariff?
Revenue tariff-raise tax to pay off a debt.
| Protective tariff-tariff designed to help a business be competitive.
34
What does the sweater industry represent?
The tariff on the British sweater supposedly protect American people and the American business that is not originally competitive. It will eventually make the American people poorer. Great Britain also may hit us with a Retaliatory tariff On American goods sold in Britain. Tariffs never encourage deficiencies.
35
What are some key elements of mercantilism?
Zero sum game. Gold and silver were the measurement of wealth. Export more than you import. Heavy regulation. Kings and queens created monopolies. Every country should be as sufficient as possible.
36
How did the British use tariffs to control the American economy?
Went down the American coast and created monopolies. VA-tobacco. They also passed the navigation acts in 1651. They created Enumerated commodities.
37
How did the British pay the Americans for their goods?
The British would examine the world price of the good the previous year and would give America that amount for their goods. If the world price was higher than what Americans were being paid than the Americans would smuggle their products to the Dutch. So the British establish customs services to check all ships going in and out of American ports. But the custom officers could be bribed or threatened.
38
What's in the riot act say?
Mobs should disburse or else it would be imprisoned or flogged. Custom officials still took bribes.
39
Why did Britain impose the stamp tax?
They doubled their national debt because of the French Indian war so they created the stamp tax, which taxed any paper good. The British thought everyone in the British Empire had to pay it in order to pay off the debt. Americans had a problem with it because it was taxation without representation.
40
What did the Pacific Railroad Act do?
Created Inion Pacific (UP) and Central Pacific (CP)
| Govt. gave them more money every time a new addition of track was laid. This incentivied speed, not efficiency
41
What did the govt. dictate to the railroad company?
The building strategy and made the railroad builders dependent on the govt. The power to subsidize=power to destroy.
42
What was the Thurman Law?
Said the UP had to pay 25% of net earnings each year to repay its debt to the govt.
43
How does a subsidy end in a company bankruptcy?
Subsidy-->inefficiency-->consumer wrath-->govt. regulation-->company bankruptcy.
44
Who was Henry Villard?
owned Northern Pacific in 1881
1. Manipulated stock, 2. created monopoly 3. Good persuader
Rushed into building to collect subsidies, raised rates, poorly constructed the NP.
Competed with James J. Hill
45
What was Hill's strategy for building the Pacific RR?
Chose land that had lots of resources and people could settle in.
he built slowly and developed the export of the area.
Moved immigrants there for a cheap rate if they would till the land.
Built RR for efficiency and durability, not scenery: shortest and leave curviest
46
What were private companies' advantage over govt. subsidized companies?
Those who got fed. aid ended up being hung by the strings that were attached to it.
Hill could buy from international businesses, whereas the subsidized transcontinentals had to buy American goods.
47
What was the counterargument for govt. subsidized companies?
1. The social gain for the public was temporary
2. Loss of shipping with an inefficient railroad was permanent
3. One subsidy turned into many subsidies
4. Promoted shady business ethics and political corruption.
5. Subsidies required massive lawmaking to keep the transcontinental UP, CP, and NP in action.
48
What did the ICC do?
Investigate and abolish race discrimination on the RR industry. Bureaucracy grew
49
What was Hill's Philosophy in business?
1. Build the most efficient line possible
2. Use line to promote exports in your section (help others before you can be helped)
3. Expand only aas profits follow
50
What did the Hepburn act say?
Rates had to be made public and applied equally to all shippers and couldn't be changed without 30 days notice.
51
Why did entreprenuership flourish in America?
1. Presence of private property: Clear definition of ownership
2. Economic freedom: freedom of enterprise:
3. Reliance upon competition instead of govt. planning to allocate resources
52
What is freedom of enterprise?
The right of people adn firms to enter any markets they choose and to conduct their own operations as successfully as their abilities, resources, and even luck allow them.
53
Who was John Jacob Astor:
multi-millionaire fur traders
Participated in world trade
Founded American Fur Company (used merit system)
Traded the best supplies at reasonable rates of exchange
54
Who was Thomas Mckenney
Astor's govt.-supported fur trader
Supplied goods to Indians that didn't interest them
Refused to sell indians liquor and attempted to teach them to be virtuous.
55
Who was Stevens T. Mason?
He launched a gigantic scheme of state run railroads and canals that almost bankrupted the state.
Became acting governor of Michigan at age 19.
56
What were the forces that made overseas exploration more profitable?
New technologies, political changes that coincided with search for treasure and advances in shipbuilding technology, and the Protestant Reformation.
57
What were the advantages of joint stock companies?
First, they allowed investors to spread the risk among many owners. Second the company didn't have to die when the proprietor did. This shares of stock changed hands.
58
What were the reasons for the rise of an English-Atlantic civilization?
First, they have the best business practices. Second, they had a social climate receptive to risk-taking. Third, the property rights were so firmly established.
59
Why was the mercantilist state bad for an entrepreneur?
Wealth was limited because it was measured in gold and silver. The nations position rested on the amount of gold they had. Government regulation used tariffs and subsidies and believed in a zero-sum game.
60
Who is John Smith?
He believed that those who do not work will not eat. He found tobacco. He believed and giving land to encourage immigration.
61
Who was Paul Revere?
A premier silversmithing Goldsmith. At age 65, he builds rolling mills to produce sheet copper.
62
Prior to heavy government regulation, what was the governments role in business?
Government just collected taxes. When taxes became too high, items were smuggled into the Nation.
63
What did John Locke think about liberty?
The state would shrink as liberty grew-the government that governs best governs least. Laissez faire. The perfect market equals no external forces that affected supply, demand, or competition.
64
What was the Stamp Act of 1765?
A government stamp was placed on every paper transaction. The stamp was a tax. It taxed everyone at every turn in their daily commerce.
Americans believed in no taxation without representation.
65
What did the tea act of 1773 do?
A crackdown on smuggling in and out of America. It angered Americans, and shifted the debate from British rights to impose taxes to the process by which government made decisions. The Boston tea party resulted because of this.
66
Who was the known financier of the revolution?
Robert Morris. His bank made short-term loans to businesses and collected interest
67
What the constitution do politically and economically for America?
It created the political and legal climate conducive to economic risk taking. The federal government ensured uniformity and consistency. The powers given to states were equally important and greatly shaped business and the economy. The document was flexible and resilient. And it provided a framework of order.
68
What did the Erie Canal do?
I connected the Great Lakes and Atlantic coast so that New York citizens and New Englanders could come to Michigan. It's success encourage states to have active governments detectors taxers citizens and build a transportation network
69
What did Mason come to realize after his failure with building a government railroad system?
The subsidize companies tasted the sweetness of subsidies and They didn't spend their money as wisely as they would've spent their own. Also, because no one owned the bridge, no one had direct financial stake in building it well.
70
Make policy did Alexander Hamilton favor?
He defended State activism in the economy. He favored government planned approach for economic growth.
71
What did the Townsend acts tax?
Tea, glass, and paper. This tax applied to the entire British Empire. Prime Minister Lord North decided to get rid of this and just tax tea. He took a loss on the tea selling.
72
Why did America enter the Revolutionary war?
They were fighting for natural rights. This included life liberty and pursuit of happiness. Government is supposed protect these. The British government did not do that so America called for independence. They asked for loans from patriots but did not get the right support.
73
What were the first battles of the Revolutionary war like?
Horrible living conditions, cold winters, the army was dissolving.
74
Who did George Washington work with to raise money for the war?
Robert Morris.
75
What were the advantages of the Bank of the United States?
Had a larger capital than any other bank, they had a huge pool of government funds on deposit, and the profitability went up because it could make more loans, and they supported interstate branch banking so they could establish branches in any state they chose.
76
What was Jeffersons land policies?
He believed that landowners would be more self-sufficient small farmers. He passed the Northwest ordinance of 1787, which permitted settlers to form a territorial government when a population reached 5000 males.
77
How did John Jacob Astor make his money?
He was involved in the first trading business. First Raughton circulated as currency because money was scarce. He pushed government out of the for business.
78
What did mass production lead to?
Economies of scale-the ability to maintain a profit by lowering Per-unit cost of items through higher production. Urbanization brought supply businesses closer to primary businesses
79
What did Eli Whitney do?
He pushed the north and the south away from each other by having a musket manufacturer dominate the north and have the cotton gin dominate the south.
80
What did Friedrick Tudor do?
He worked in food preservation, and harvested ice from New England and shipped it to the south. He change the national standard of ice drinks.
81
What did banks have to do to prove Their worthiness to their customer?
Thanks for Decheau they were providing a public service, not just making a profit
82
What was fractional reserve banking?
When banks keep a small amounts of funds on hand in case of Bank runs.
83
What did Stephen Girard do?
Played a key role in persuading Congress to create a second Bank of the US
84
Why didn't the national Road fail?
First government money was used, so political decisions were made not economic ones. Second, the road cost more for the subsidized company to build it and the entrepreneur's. Third no one own the national Road, so no one kept it up.
85
What was the first suggestion to pay off government bonds to the people after the Revolutionary war?
Instead of paying back $40 million, the government would only pay back 10 million. However, this would cause distrust between the government and the people, and was therefore turned out.
86
What was the Madison Bill concerning bonds?
They would pay everyone back but not include the interest. This plan also failed.
87
What was the Hamilton plan about bonds?
To pay everyone back at whatever the government promised. They would redeem the oldest ones first and then pay back the newest ones. George Washington backed him up on this plan because it supported integrity.
88
What were the two types of taxes after the Revolutionary war?
A revenue tariff, where 5% tax on all imports. A vice tax-taxed whiskey at 25%.
89
Why did the government not make that much money on the whiskey tax?
Because customer service had to go out to the distillery, which was hard to find. Also scared because of the whiskey rebellion. A tax collector was Tarred and feathered.
90
What did Washington say in his farewell address?
He said to cherish public credit-it creates strengthen security-avoid the accumulation of debt and just charge war debts during times of peace.
91
During what time was the most explosive growth in business?
Between the Missouri compromise in the Mexican war Because land was so cheap that immigrants could come and inhabit it
92
What was Albert Gallatin's plan for roads?
Ask Congress to give $20 million to private corporations to build roads and canals. Jefferson did not support this.
93
What were the positive and negative effects of the transportation revolution?
It's open new markets, facilitated shipping, and encourage settlement in remote areas. It also created pollution, noxious smells, and offensive sights and loud noises.
94
What did Williamhurst say about property rights?
Believe that the American business favored developmental rights over Prestine property rights. He believed in eminent domain-private land could be seized after public process that involves paying "fair value" for land deemed necessary for public use.
95
What did De Witt Clinton do about the Erie Canal?
Successfully persuaded the New York legislators to build The Erie Canal
96
Over the two fundamental dangers created through the state governments heavy investment in bonds?
First, subjected states disproportionately to sundrenched economic changes that could have caused the value of bonds to plummet. Second state taxpayers had to bear the brunt of debacles involving canals.
97
Who is Robert Fulton?
He created the steamship Clermont That went from New York to Albany. The New York legislation gave Fulton a monopoly on steamboats for 30 years.
98
What did Cornelius Vanderbilt do?
Lowered fares for the steamboat and challenge the Fulton monopoly through Gibbons V Ogden.
99
Who is Nicholas Biddle?
He was the head of the second Bank of the United States. He maintain discipline among state banks, and made state banks hold large specie reserves of banknotes.
100
What did the safety fund attempt to do?
It hope to protect banks from bank runs, but was not successful. Each bank in New York City paid into an emergency fund to cover losses to depositors.
101
What is information cost?
Costs of buyers and sellers of obtaining accurate and timely information for sound business decisions.
102
Why did the post office fall short in the business world?
Because they didn't have competitive pressure to incorporate the latest technology or cut costs.
103
Describe Washington Tariffs?
He had a tariff on luxury items.t
104
Why didn't Washington free his slaves?
He knew the plantation economy and new that no one would hire them. If they went to the north they wouldn't be trained in attending Northern crops. The idea of getting rid of slaves was good, but not economically feasible.
105
What were the Tripoli wars all about?
Tripoli, off the coast of Spain, collected money from all of their European nations to enter into the Mediterranean Sea to trade. Jefferson refused to pay the Tripoli Fee, And the Tripoli king declared war against the US. US fought for free trade.
106
With the canals or the railroads faster in moving freight and people?
The railroads
107
What did Thomson do?
Organize the Pennsylvania Central Railroad. He studied railroad operations in England and joined a bank railroad business. He created managerial hierarchy.
108
What is a managerial hierarchy?
A framework of managers with a top-down authority structure in which strategic decisions are made by the top levels of management.
109
Who was Daniel C McCallum?
He created a set of rules so that one could create and empower managerial hierarchies. He created line and staff positions.
110
Who was Albert Fink?
Created cost accounting-tracking performance of individual divisions.
111
What did subsidies encourage?
Quantity over quality. They encouraged higher repairs and operating costs.
112
What did the rise of the professional managerial class mean?
A rise of the big business, the death of the entrepreneur.
113
Why was Erie Canal so successful?
It had a great geographical location, and wasn't easy project. If private companies would've built the erie Canal, there wouldn't be the baggage of the other eight canals that De witt clinton pushed for.
114
What was the plantation owner's argument for slaves?
Northern factory owners enslaved their workers with an adequate wages, but plantation owners cared for slaves needs conscientiously.
115
Why did James Madison veto the federal public works though?
Constitution says Congress doesn't have this right- doesn't fall under the power to regulate commerce nor under providing common defense and general welfare.
116
What did Jay Cooke do with bond sales?
Bought up lots of US government bonds and used his newspaper advertising to sell bonds to general public with a patriotic pitch.
117
What were the consequences of Lincolns actions?
First, discarded debate over personhood of slaves. Second, ex slaves where consumers and majorly demanded change demand. Third, thousands of self-employed business owners arose.
118
What did James B Duke mass-produce?
Cigarettes. He abhorred inefficiency and constantly emphasized cutting waste.
119
What did Henry Heinz do to promote his product?
He gave a free pickle away in exchange for huge advertising.
120
What did Gustavus swift do with waste products?
He found ways to use virtually all parts of beef and pay carcasses and created new industries including soap.
121
What was Frederick Weyerhaeuser known for?
He was an environmentalist and Lumbermen. He sold much timber, but also focused energies into reforestation soil erosion and fire prevention.
122
What was Dartmouth v. Woodward?
John Wheelock wanted to stay on Dartmouth's board. Dartmouth rep. Daniel Webster said that no state share impair the obligation of contracts. Court declared that state cannot appoint people to a college board. Therefore, Wheelock was not reinstated.
123
Who was Albert Gallatin
Wanted to build a good river system through govt. assistance. Thought govt. would be paid back by the profits.
124
What did Folsom say about Madison's veto of federal public works bill?
In you stretch the interpretation to "the common defense and general welfare", it will lose its value. Roads and canals are good, but the constitution does not say the govt. should build them.
125
What did Madison realize about taxes?
That once they are in place, they are difficult to remove because the govt. gets dependent on it.
126
What was the Underground railroad?
A trail of families that helped slaves travel North to freedom. This system couldn't work unless whites and blacks worked together to fulfill the Bill of Rights.
Constitution (higher law) was more important than the normal law on property rights.
127
Who was Joseph Scranton?
Started a rolling mill to produce iron for RR tracks. Competed with Britain. Initially chose a poor area w/ limited natural resources, but built a city around their ironworks and built an RR to connect the city to outside markets. Drew in entreprenuers.
128
Why did people not like Scranton?
Farmers didn't want their farms to be turned into an industrial community.
129
How did the city of Scranton grow?
It grew as a manufacturing center and attracted many capitalists who were willing to take different types of risks: incentiveness and creative entrepreneurship.
130
What does the saying "rags to riches" infer?
investment, business talent, and perserverance can take an average soul to a life of abundance.
131
How were social elites portrayed in media?
Scandals spread through the papers: viewed as obscenely wasteful, which insulted wage laborers, farmers, and small business owners.
132
What did the Populist party call for?
It was made up of farm protest organizations and also minors and wage earners-called for an expanded money supply to alleviate that problems
133
Who was Frank Baum?
He wrote the parable populism in the Wizard of Oz. He also invented the show window outside stores.
Kansas represented the Hotbed of populism
Scarecrow represented the farmer who needed a brain.
Tin man represented industrial workers that adapted to mechanization-more efficient the less human. Needed a heart.
Lion equals politicians
The wizard was revealed as a little insignificant man once she stripped from his office and regalia.
134
How did Progressives view the factory Jobs?
They thought capitalists viewed workers of the cog in the machinery of industry. They also believed factory work was monotonous And dangerous.
135
How did employers abuse their immigrant employees?
The employers where obsessed with efficiency and sought to squeeze out higher productivity from the greater labor.
136
Who was Welch?
He created a tasty grape juice during Prohibition. Fully utilized advertising.
137
Who was Samuel Gompers?
He headed labor unions and wanted laborers to control and master the change not be controlled by it. He illuminated radicals and only use strikes as a last resort.
138
How did employers resist union behavior?
First they use yellow dog contracts-couldn't work as part of the union. Second, they used a black list. Third, injunction-restricting strike activity. Fourth, harassment.
139
Who was John D Rockefeller?
Lowered kerosene prices so that whale oil and coal oil We're no longer sold.
140
Who is Elijah McCoy?
Used the Underground Railroad to reach Canada. Created the engine lubricator to help railroads not stop as often.
141
Who is Madame Walker?
Innovated haircare products for African-American women. Most entrepreneurs were successful within their Race Or ethnicity
142
What was America's debt before and after the Civil War?
Before, it was $65 million. After, it was$ 2700 million. The annual interest on the new debt was higher than the total debt before the Civil War.
143
How did America pay off its war debt?
First, the leaders saw that if they taxed the people too much, it would stifle individual liberty and discourage entrepreneurs to innovate. For 28 straight years the government took in more revenue then spent on expenditures.
144
What did Pres. Grant abolish?
The income tax. He encouraged economic development and trade so that "the rising tide will lift all boats". Government shows who to tax with the income tax. The people chose how they would be taxed with regular taxes.
145
Who was Andrew Carnegie?
Greatly cheapened steel in America. Had a high EQ-entrepreneurial quotient. Said "watch the Costs and profits will take care of themselves."a strong Christian. Built a refinery to change Olele and kerosene. Competed with the Russians. God first, family second, career third. The Sherman antitrust act told standard oil to break up into separate state companies.
146
Who was Charles Schwab?
Carnegie's problem solver. Found favor with Carnegie because of his hard work. When Carnegie retired, he sold Carnegie steel to J.P. Morgan who renamed it US steel. Schwab didn't have as much authority. Lived lavishly and his retirement.
147
What happened during the Gilded Age? 1865 to 1900.
25 years of budget surpluses. Grant offered $100 million worth of gold to reimburse people further greenbacks. Some took him up on it, but some kept their greenbacks because they have the assurance of the gold standard.
148
How many vetoes the Grover Cleveland have in his first term from Congress and what was the Texas Seed veto?
414. Texas farmers had a bad crop and Congress wanted to give them $10,000 worth of seeds to plant next year's crop. Cleveland vetoed it because the Constitution said they couldn't give subsidies to certain Americans. He did encourage charity to help them. People helping people, not government helping people.
149
Did entrepreneurs thrive in post-Civil War?
Yes. Carnegie was the steel entrepreneur during this time. High EQ. Took advantage of economies of scale.
150
Why was Rockefellers Railroad Company of fix cost business and why did railroad people give him rebates?
It wasn't that much of a cost difference between Paul and 50 carloads then hauling five. Rockefeller received rebates because he use though railroads so much. He also used his own company to load the equipment.
151
Who was Otterbilt Dow?
Study bromine and used Alexis releases to extract bromine particles. Competed With bromkonvention (German). When they cut their prices so low to push out Dow industries, Dow bought up all of German bromine and repackaged it and sold it again for a higher profit.
152
What were income taxes considered the replacement of the tariff system?
They shifted the control of taxation from the local to the national level. They would also equalize tax burdens. They would also redistribute wealth.
153
Why was their recession in 1921?
First higher wages. Second, agricultural depression. Third, enlarged labor pool because veterans came home from World War I one.
154
How did Wilson hurt the war preparation?
He created the war industries Board which had conflicting bureaus and complicated bureaucracy.
155
What were World War I's for effects on American enterprise?
First, anticorporate management and government together. Second, government expansion into the private sector. Third, solidified positions of professional accountants, economists, academics-brought in the act of scientifically predicting business. Fourth, it validated the appendices of the progressive movement.
156
How did Henry Ford create the People's car?
Invented universality in mass production. Made model T and only painted it black. It was created through complete interchangeability with the parts. Did have quick turnover with his laborers.
157
What did the Sherman antitrust act say?
Any combination or corporation in restraint of trade is illegal. This is very vague.
158
What was the court case of DC EC Knight versus the US?
A sugar refiner. The sugar refining company buys out EC Knight and controlled 98% of sugar refining. The court favor to EC Knight said that they were not restraining trade.
159
What was the spirit of the Gilded Age and what was the spirit of the progressive era?
Spirit of the gilded age-free people from government can do great things. Spirit of progressive Era-government intervention can make things better.
160
How did Vanderbilts huge house to play into Taking from the rich and giving to the poor?
He built a house was 70 rooms. If you would've built only 69 rooms that money from the extra room could pay for the entire cities health care for one year. Can't society be restrained once one room is taxed?
161
How did Terry Roosevelt use the Sherman antitrust act to hurt James J Hill?
Convince the court to Break up The Northern securities company because it restrained trade to have one company own all of the Northern Railroad transportation.
162
How did Roosevelt attack Rockafella?
Use the Sherman antitrust act of 1911 to break up standard oil Company into 30 different companies with a different Board of Directors.
163
What was the ICC?
The interstate commerce commission. It was the first federal regulatory industry that regulated how much railroads could charge.
