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History Chapter 4

Terms in this set (41)

Entrepreneur
A person who organizes, manages, and takes on the risks of a business.
Protective Tariff
A tax on imported goods that raises the price of imports so people will buy domestic goods
Laissez-faire
Idea that government should play as small a role as possible in economic affairs.
Patent
exclusive rights over an invention
Thomas Edison
American inventor best known for inventing the electric light bulb, acoustic recording on wax cylinders, and motion pictures.
Bessemer Process
A way to manufacture steel quickly and cheaply by blasting hot air through melted iron to quickly remove impurities.
Suspension bridge
bridge that has a roadway suspended by cables
Time zone
any of the 24 longitudinal areas of the world within which the same time is used
Mass production
Process of making large quantities of a product quickly and cheaply
Corporation*
A business that is owned by many investors.
Monopoly
the exclusive possession or control of the supply or trade in a commodity or service.
Cartel
a formal organization of producers that agree to coordinate prices and production
John D. Rockefeller
Established the Standard Oil Company, the greatest, wisest, and meanest monopoly known in history
Trust
a combination of firms or corporations formed by a legal agreement, especially to reduce competition
Andrew Carnegie
A Scottish-born American industrialist and philanthropist who founded the Carnegie Steel Company in 1892. By 1901, his company dominated the American steel industry.
Social Darwinism
The belief that only the fittest survive in human political and economic struggle.
ICC
Interstate Commerce Commission, regulated economics and services of specified carriers engaged in transportation between states
Sherman Antitrust Act
1890 law banning any trust that restrained interstate trade or commerce
Sweatshop
small factory where employees have to work long hours under poor conditions for little pay
Collective bargaining
Process by which a union representing a group of workers negotiates with management for a contract
Socialism
A system in which society, usually in the form of the government, owns and controls the means of production.
Knights of Labor
labor union that sought to organize all workers and focused on broad social reforms
Terence V. Powderly
led the Knights of Labor, a skilled and unskilled union, wanted equal pay for equal work, an 8hr work day and to end child labor
AFL
American Federation of Labor formed in 1886 by Samuel Gompers in order to voice the working class (only highly skilled laborers). It fought against labor forces and debated work conditions for skilled workers. Utilized Strikes.
Homestead Strike
1892 steelworker strike near Pittsburgh against the Carnegie Steel Company. Ten workers were killed in a riot when "scab" labor was brought in to force an end to the strike.
Eugene V. Debs
Leader of the American Railway Union, he voted to aid workers in the Pullman strike. He was jailed for six months for disobeying a court order after the strike was over.
Pullman Strike
in Chicago, Pullman cut wages but refused to lower rents in the "company town", Eugene Debs had American Railway Union refuse to use Pullman cars, Debs thrown in jail after being sued, strike achieved nothing
How did capitalism encourage Industrialization?
"rags to riches" mentality, encouraged entrepreneurs, created jobs, and attracted foreign investments
How did electricity affect the work day in America?
created shift work and allowed people to work longer
Which industry spurred economic growth and innovation in related industries?
railroads
What effect did the Bessemer process have on American industry?
made making steel easier and faster, which made it easier and more popular to use than iron.
What advantage do corporations have?
reduced financial risk, owners are only liable for their shares
Which two methods can corporations use to maximize profits?
decrease cost of production, pay workers low wages, and advertising
Define horizontal integration. Which entrepreneur utilized this technique?
Rockefeller, and when one company merges with another that operates at the same level in an industry
Define vertical integration. Which entrepreneur utilized this technique?
Carnegie, combination in one company of two or more stages of production normally operated by separate companies
Why was the ICC formed?
oversee railroad operations and required railroads to send reports to Congress to allow Congress to initiate investigations of unfairness
Why did workers tolerate poor wages in the late 1800s?
the workers knew they could be replaced easily and they needed the money
How did the federal gov. support employers during labor unrest?
didn't recognize unions as legally protected groups
How did industrialization and new technology affect the economy and society?
linked world markets, shifted U.S. from agrarian to industrial, and U.S. grew to economic power
How did big business shape the American economy in the late 1800s and early 1900s?
used railroads to transport goods and expand their reach and increase profit
How did the rise of labor unions shape relations among workers, big business, and government?
sometimes gave workers a voice in how the company was run, put a spotlight on child labor, and created laws regarding labor
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