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10-20-10 Daily Speak!!!

What major website has been having issues with keeping people’s information private?

Big Business

Chapter 19, Section 2

Dominance of Big Business

Many people were forming businessesCorporations

Sell portions of ownership called stock shares

Stocks

Mr. Madsen buys 100 shares of Baskin Robbins…they cost $1.00, so I spent $100

Baskin Robbins’s stocks go up…I make money

Baskin Robbins’s stocks go down…I lose money

But only as much as I put in!

Andrew Carnegie

Born in ScotlandPoor immigrantAs a teenager took job with a railroad

company and worked up to become railroad superintendent

1873 focused efforts on steel making

Vertical IntegrationAndrew Carnegie

expanded business by buying out competitors when steel prices were low

Vertical IntegrationOwnership of businesses

involved in each step of the manufacturing process

Mr. Madsen’s Chocolate Sprinkle Ice Cream

Vertical Integration I buy all steps in making Ice Cream

I buy the following

Cows

Cone factory

Sprinkle Factory

Chocolate Factory

John D. Rockefeller

By 21, he was a partner in a wholesale business

Decided to start an oil-refining businessOnly 10 years Rockefeller’s Standard Oil

Company was the country’s largest oil refiner

Horizontal IntegrationH.I.: Owning all businesses in a certain

fieldRockefeller controlled 90% of the oil

refining business in the United States

Mr. Madsen’s Chocolate Sprinkle Ice Cream

Horizontal Integration I buy all Ice Cream

Companies I buy

Baskin Robbins

Dairy Queen

Coldstone

Frosty Tips

J.D. Rockefeller too powerful

Had U.S. gov’t in the “palm of his hands”

Why Would Americans be nervous of John D. Rockefeller?

Social Darwinism and Business Leaders

Leaders justified their business methods bySocial Darwinism

Charles Darwin’s theory…survival of the fittest

Many Leaders helped the poor

The AntiTrust Movement

Many people believed that there were unfair business practices

People feared monopoliesTotal ownership of a product or service

Example: Comcast for some communitiesSherman Antitrust Act

Made it illegal to create monopolies or trusts that restrained trade