Big Businesses

Definition

Big Businesses refer to large corporations that dominate their respective industries through the use of advanced technology, extensive resources, and often monopolistic practices. During the late 19th century, these entities significantly influenced the economy and society, shaping the political landscape and contributing to economic disparities. Their power and wealth raised questions about capitalism, regulation, and the role of government in addressing social inequalities.

5 Must Know Facts For Your Next Test

1. Big Businesses emerged prominently during the Gilded Age, with industries like steel, oil, and railroads being dominated by a few major players.
2. Figures such as John D. Rockefeller in oil and Andrew Carnegie in steel epitomized the rise of Big Businesses, leading to immense wealth concentration.
3. These corporations often engaged in unethical practices like price-fixing and exploiting labor to maximize profits, sparking public outrage.
4. The influence of Big Businesses extended into politics as they lobbied for favorable laws and regulations, raising concerns over corruption and the integrity of democracy.
5. The rise of Big Businesses eventually led to calls for government intervention and regulation, culminating in antitrust laws aimed at curbing monopolistic practices.

Review Questions

• How did Big Businesses influence politics during the Gilded Age?
  • Big Businesses had a profound impact on politics during the Gilded Age by wielding significant economic power that translated into political influence. Many corporate leaders engaged in lobbying efforts to sway legislation in their favor, often resulting in policies that prioritized corporate interests over public welfare. This relationship between big businesses and politicians raised concerns about corruption, as powerful businessmen were able to manipulate the political system to maintain their dominance.
• Evaluate the social consequences of the rise of Big Businesses on American society during this period.
  • The rise of Big Businesses had significant social consequences for American society, including increasing economic disparities and labor exploitation. While these corporations generated immense wealth, they also contributed to widening income inequality as profits concentrated among a few wealthy owners. Workers faced harsh conditions and low wages, leading to widespread labor unrest and the emergence of labor unions seeking better rights. This tension between corporate interests and workers' rights highlighted the growing divide within American society.
• Assess how the emergence of Big Businesses changed the landscape of American capitalism and prompted responses from government and society.
  • The emergence of Big Businesses fundamentally altered American capitalism by fostering an environment where monopolistic practices became prevalent, shifting the focus from competitive markets to corporate control. This transformation prompted significant responses from both government and society, as people recognized the need for regulation to address the negative effects of unfettered capitalism. The introduction of antitrust laws reflected societal demands for fairness and equity in the marketplace, aiming to dismantle monopolies and ensure a level playing field for smaller businesses. This ongoing struggle between corporate power and governmental oversight continues to shape American economic policies today.

Related terms

Monopoly:

A market structure where a single seller controls the entire supply of a product or service, leading to reduced competition and higher prices.

Robber Barons:

Wealthy and powerful businessmen in the late 19th century who used exploitative practices to amass their fortunes, often criticized for their unscrupulous methods.

Trusts:

Legal arrangements in which several companies agree to merge their operations or control their markets under a single management to reduce competition and increase profits.