Big Business

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Big Business
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Andrew Carnegie

• Started his own steel company in 1873.
• By 1899, his company manufactured more steel than
  all of GB.
• Management techniques
• Searched for ways to make better products more
  cheaply.
• Attracted talented people.

3
Carnegies Business Strategies

• Vertical Integration bought out all suppliers.
• Horizontal consolidation bought out competition
  by merging with others.

4
Social Darwinism

• Big Business explained its wealth with this
  principle.
• It said that the rich were rich because they were
  stronger and had Gods favor.

5
As businesses consolidated, oligopolies and
sometimes monopolies formed in certain markets.
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John D. Rockefeller

• Started Standard Oil Company.
• Used trusts as a merger approach.
• Paid workers low wages and ran competitors out of
  business by charging extra low prices for oil.

7
Sherman Anti-trust Act

• Passed by Congress in 1890 to combat businessmen
  like Carnegie, but the act was not enforced for
  very long.
• Said trusts and any other thing that tampered
  with free trade was illegal.

8
The South was slow to industrialize because it
lacked capital. It remained mostly
agricultural, and the businesses that did exist
in the South were forced to compete with Northern
industry.