University:
Boston University
Course:
MET HI 101 | The History of Western Civilization I
Academic year:

2022
Views:

5

Pages:

4
Author:

Alma Stephenson

CAPITAL & LABOR THE MARCH OF CAPITAL Industrialization Begins • Railroads pioneer modern capital markets and management strategies • Telegraph lines and rails link far-flung markets enabling national economy • Standardization of parts enables interchangeability. • This allows emergence of mass production techniques in range of industries like meatpacking, sewing machines, bicycles Monopolies/Trusts Form • Firms therefore aggressively consolidate to stabilize markets, control competition • Trusts form with monopolistic control over oil, sugar, tobacco, whiskey, lead, beef etc. 2 LAISSEZ-FAIRE • Laissez-Faire – “hands off” *** • Basically, meant that if the government left the economy alone, it would self-regulate. • Myth: • The American government prior to the Great Depression held firm to the Laissez-Faire ideology. • Truth: • The American government was pro-business and would only implement Laissez-Faire when it was for the benefit of American business owners. THE GREAT MERGER MOVEMENT • • Massive mergers occur from 18951904 • Companies merge into one larger company to eliminate competition Over 4,000 companies folded into consolidations and giant trusts Seen as way for companies to bypass instability and low profits from competition • U.S. Steel merging Carnegie Steel and other producers in 1901 becomes first billion-dollar company • Just 41 consolidations control over 70% of market in their respective industries • 4