Big Business

Definition

Big Business refers to the large-scale corporate enterprises that emerged during the Gilded Age, characterized by significant capital investment, monopolistic practices, and substantial influence over the economy and politics. This era saw the rise of powerful business magnates who controlled key industries, often leading to tensions with labor groups and prompting political responses aimed at regulating their practices.

5 Must Know Facts For Your Next Test

1. Big Business was characterized by the emergence of powerful industrialists like Andrew Carnegie and John D. Rockefeller, who controlled key sectors such as steel and oil.
2. The rise of Big Business led to significant economic growth but also resulted in harsh working conditions and low wages for laborers.
3. The government response to Big Business included the Sherman Antitrust Act of 1890, aimed at preventing anti-competitive practices and monopolies.
4. Many labor unions formed during this period as workers sought better conditions and wages, leading to strikes and confrontations with business owners.
5. The influence of Big Business extended into politics, as corporate interests often shaped legislation and public policy through lobbying and financial contributions.

Review Questions

• How did Big Business impact the labor movement during the Gilded Age?
  • Big Business significantly influenced the labor movement by creating working conditions that prompted workers to organize for better rights. Laborers faced long hours, low pay, and unsafe environments, which led to the formation of unions seeking to address these issues. The response from Big Business often included resistance to unionization efforts, resulting in strikes that sometimes ended in violence, illustrating the tension between corporate interests and labor rights.
• Evaluate the effectiveness of government regulation on Big Business during the Gilded Age.
  • Government regulation during the Gilded Age aimed to curtail the power of Big Business, primarily through legislation like the Sherman Antitrust Act. However, these regulations were often poorly enforced, limiting their effectiveness in dismantling monopolistic practices. The influence of corporations on politics made it difficult for lawmakers to challenge Big Business effectively, leading to ongoing struggles between economic powerhouses and regulatory efforts.
• Assess the long-term consequences of Big Business's dominance on American society and economy.
  • The dominance of Big Business during the Gilded Age had profound long-term consequences for American society and the economy. It laid the groundwork for modern corporate structures and influenced economic policy towards favoring capitalism. However, it also led to significant social inequalities and strained labor relations that persisted into the 20th century. Additionally, the concentration of wealth and power in the hands of a few created an environment ripe for reform movements that sought greater economic justice and regulation.

Related terms

Monopoly:

A market structure where a single company or group has exclusive control over a commodity or service, limiting competition.

Labor Union: An organized association of workers formed to protect and further their rights and interests, often in negotiations with employers.

Trust: A legal arrangement where several companies transfer control of their stock to a single board of trustees, effectively creating a monopoly.