Question

name class date lesson 3, continued wealthy found this theory sensible; however, others did not. 1. why would business leaders favor laissez - faire capitalism and social darwinism? new business strategies how did entrepreneurs try to control competition? most entrepreneurs were willing to do whatever was necessary to gain control of their industry. andrew carnegie entered the steel industry in 1873, and by 1899 he was determined to control the entire steel industry. through vertical integration, he bought companies that supplied his raw materials such as iron and coal, and railroads to transport the steel. he used horizontal integration by buying out or merging with other steel companies. some entrepreneurs tried to control competition. banker j.p. morgan, for example, did this by taking over and merging other peoples businesses. he created companies that did nothing but buy out the stock of other companies. so he gained control of the railroad, steel, and farm equipment industries. control over their industrys production, wages, and prices. consumers had fewer choices and were forced to pay whatever price stated for products. workers had fewer choices, too. they were stuck with the wages companies offered because they could not easily find another job. while carnegie and other wealthy business owners made charitable contributions, some americans thought of them as robber barons because they took advantage of workers and consumers. 2. what problems were caused by monopolies? government and business what was the purpose of the sherman antitrust act? as the power of giant corporations grew, the government became concerned that there was a lack of free competition. in 1890 the sherman antitrust act made it illegal to form a trust and prohibited monopolies and other activities that prevented competition. however, this was a difficult act to enforce. first, the definitions of a trust and monopoly were not clear. second

Explanation:

1. Business leaders favored laissez - faire capitalism and Social Darwinism as it allowed them to operate with minimal government interference, enabling them to accumulate wealth and power freely under the idea of "survival of the fittest" in business.
2. Monopolies caused problems such as limited consumer choice, higher prices, and limited worker choice with lower wages as companies had significant market power.
3. The purpose of the Sherman Antitrust Act was to prevent the formation of trusts and monopolies and to promote free competition as the power of giant corporations grew and threatened fair market conditions.

Answer:

1. Laissez - faire capitalism allowed minimal government interference, and Social Darwinism's "survival of the fittest" idea justified their accumulation of wealth and power.
2. Limited consumer choice, higher prices, limited worker choice with lower wages.
3. To prevent the formation of trusts and monopolies and promote free competition.