Topics 6.6-6.9 Flashcards
Cornelius Vanderbilt
A business tycoon who amassed a fortune in the steamboat business and who helped to consolidate many small rail lines under the New York Central Railroad
Pools
An informal agreement between a group of leaders to keep their prices high and competition low
J.P. Morgan
A banker who financed the reorganization of railroads, insurance companies, and banks
Andrew Carnegie
A Scottish-American industrialist who led the expansion of the steel industry
John D. Rockefeller
An American industrialist who founded Standard Oil
Monopoly
When a business owns or controls all of their competitors
Trust
An organization or board that manages the assets of other companies
Horizontal integration
One company takes control of all its competitors
Vertical integration
One company controls all stages of making a product
Holding company
A company created to own and control diverse companies
Laissez-faire
“Hands off” economics
Social Darwinism
“Survivial of the fittest”: The strongest in biology, sociology, and economics will prevail
“Self-made men”
The idea of rags to riches and the concept of working your way into wealth through determination and hard work
Protestant work ethic
Material success was a sign of God’s favor and a reward for hard work
“Iron law of wages”
Raising wages would only increase the working population, and the avaliability of more workers would in turn cause wages to fall, resulting in a cycle of misery and starvation