History Chapter 4 Test Study Guide

How did big business shape the American economy in the late 1800s and early 1900s?

*They used railroads to transport their goods* and expand their businesses across the country, which helped increase their profit, therefore making America one of the most economically powerful countries in the world

Labor unions formed

*Workers tried collective bargaining to gain more power against employers*. One form was the strike, in which workers stopped working until their demands were met

Why did the major strikes of the late 1800s lead to a backlash against labor unions?

*set important trend so employees appealed frequently* for court orders against unions

Socialism

-A movement called socialism spread through Europe in the 1830s. -It held that wealth should be distributed equally to everyone -most americans rejected socialism, but some labor activists borrowed ideas from it to support social reforms.

Robber Baron

1. "rob" workers of a just wage 2. "rob" resources out west by getting generous government contracts 3. "rob" competitors by using unfair business practices to drive others of business 4. "rob" the public through higher prices of scarce goods (oil)

problems with capitalism?

1. *few worker rights*,little workplace and product safety 2. *trend toward monopoly* and higher prices 3. *reliance on charity* or philanthropy for poor and disadvantaged.

problems with socialism (command economy)

1. *government owns most resources* and makes most decisions 2. *private individuals are discouraged from inventing and improving* 3. *can lead to a police state* (communism) if people defy the government

Captain of industry

1. created jobs for millions of workers 2.mass production of goods improved quality and reduced prices 3. changed the look of cities-steel skyscrapers,Brooklyn bridge. 4. faster transportation-steam locomotive trains, steamboats, eventually automobiles and airplanes 5. stabilized oil, steel, and railroad "boom and bust" cycles

the theory of survival of the fittest is used to defend big business

Charles Darwin's idea of evolution of species -applied to american capitalism -becomes social darwinism

What is the solution? ( for socialism and capitalism).

Have a mixed economy which is free enterprise and also personal and corporate income tax to help the lower class -government regulation of business practice, the workplace, and products.

Explain why you agree or disagree with this statement "the late 1800s was a time of great progress for all americans."

I disagree, because even though life was easier for people, they still faced higher coast of living , and were dependent upon cash wages to buy food, and preformed repetitive work in factories.

How did industrialization (heavy industry) and new technology affect the economy and society?

Industrialization made the economy and the society more developed with the world. The new inventions that came about made things easier for people and the economy had a rise. The peoples lives were easier and helped so many people.

what do the workers organize

Knights of labor- formed in 1869 as the first labor union in the nation Goal 1- shorter work day goal 2- end child labor goal 3- equal pay for men and women.

Why did business leaders create new forms of ownership like monopolies, cartels, and trust?

Monopolies had a complete control of a product or service. Corporation either brought out its competitors or drove them out of business. A cartel, a business making the same product agrees to limit their production and thus keep prices high. A Trust, companies assign their stock o a board of trustees, who combine them into a new organization. Thats why they created new forms ownership.

How did the rise of labor unions shape relations among workers, big business, and government?

More tension and struggled intensified

What is "free" about the free enterprise system?

No regulations and no taxes

Would you characterize all of the government's policies in the late 1800's toward business as laissez faire?

No, because the government also had something called the protective tariffs and made the imported goods cost more than those made locally. So not all of them are laissez faire which allowed business to operate under minimal government regulation

How did the system of patents encourage innovation and investment?

Patents encouraged innovation and investment because the federal government gave the inventor the exclusive right to develop, use, and sell an invention for a set period of time. Businessmen invested heavily in these new innovations, hoping to create new industries and expand old ones.

How can business leaders like Rockefeller and Carnegie be called both "robber barons" and "captains of industry".

Rockefeller- He made deals with railroads to increase his profits. A good thing is from his first earning he gave 10 percent to his church. By the time he died he had given away hundreds of millions of dollars. Carnegie- Andrew Carnegie increased their power by gaining control of the many different business. A good thing he did would be he had given away more than 80 percent -over $350 million- of his own fortune.

what is the difference between socialism and capitalism ?

S- government does it all C- Individual or business

How does socialism differ from free enterprise capitalism?

Socialism is owned by state or public and capitalism is owned by individuals.

What does the prevalence of child labor in the 1800s tell you about society viewed children at the time?

Society viewed children more as workers then kids. They did not attend school, rather they were working.

Identify the major problems faced by workers on the mechanized assembly line?

Some problems in factories are that workspaces were poorly lit, often overheated, and badly ventilated. Some workers lost hearing from the noisy machines. Accidents were common, both from faulty equipment an lack of proper training.

What does the fact that government regulation of business was not very successful at first tell you about the relationship between government and big business?

The relationship between government and big business had a bad time. The businesses were doing whatever they wanted, including building monopolies, paying low wages, allowing terrible working conditions. The government did little to stop. But then the government did want to stop the abuse and the business were not happy and they have been fighting about that.

What is the result of the business cycle?

economic cycle- which entrepreneurs try to control the market (get bigger) so they can survive an economic downturn

Why were employers generally opposed to labor unions?

employees saw it as a threat to their business and profits

How are the working conditions in factories

factory workers, miners and steel workers faced serious injury or death on a daily basis. children worked in many industries, doing dangerous work for low pay.

ICC

federal law to regulate , oversaw railroad operation

Thomas Edison

invented the light bulb

Samuel Morse

invented the telegraph

What are the factors of production?

labor land factory power- (stem power, petroleum, electric motors). capital (money) transportation

John D. Rockefeller

oil

Vanderbilts

railroads

Andrew Carnegie

steel

What is the role of a entrepreneur?

the inventor, or invest money on product and makes profit.

J. Pierpont Morgan

used profits earned as banker to purchase other major companies. He became the head of U.S steel company.

What is profit?

whatever is left over after your expenses

what are the unions of the AFL?

• Screen actors guild. • American Postal workers union • American federation of teachers • United steel workers of america • United Mine workers of america • International association of firefighters