Question

lesson 3, continued
entrepreneurs there had to deal with high transportation costs, high tariffs, and lack of skilled workers. the business boom in the united states bypassed the south, which continued to suffer economic stagnation.
answer the questions to identify causes and effects of business practices and government regulation.
cause\teffect

1. why were big businesses able to thrive during the late 1800s?\t2. what were the effects of laissez - faire capitalism?
2. what did andrew carnegie want to gain control of?\t4. how did andrew carnegie reach his goal?
3. why was j.p. morgan able to control his competition?\t6. what was the result of his controlling the competition?
4. what was the purpose of trusts?\t8. how did forming trusts help john d. rockefeller?
5. why did monopolies come about?\t10. what problems did monopolies create?
6. why did the government pass the sherman antitrust act?\t12. what were the results of the sherman antitrust act?
7. what made the sherman antitrust act so ineffective? it wasnt enforced very well.

Explanation:

1. Big businesses thrived in the late 1800s due to factors like access to capital, new technologies, and lack of strict regulation.
2. Laissez - faire capitalism led to rapid economic growth but also income inequality and poor working conditions.
3. Andrew Carnegie wanted to gain control of the steel industry.
4. He reached his goal through vertical integration, controlling all aspects of steel production from raw materials to distribution.
5. J.P. Morgan was able to control his competition through his vast financial resources and business consolidation methods like mergers.
6. The result of his controlling the competition was the creation of large, powerful corporations and more centralized economic power.
7. The purpose of trusts was to eliminate competition and gain a monopoly in an industry.
8. Forming trusts helped John D. Rockefeller gain near - complete control of the oil industry, allowing him to set prices and maximize profits.
9. Monopolies came about due to factors such as economies of scale, mergers, and the ability of large companies to out - compete smaller ones.
10. Monopolies created problems like higher prices for consumers, reduced innovation, and unfair business practices.
11. The government passed the Sherman Antitrust Act to prevent monopolies and promote competition in the marketplace.
12. The results of the Sherman Antitrust Act were mixed; it had some success in breaking up some monopolies but was also weakly enforced at times and faced legal challenges.

Answer:

1. Access to capital, new tech, lack of strict reg.
2. Rapid growth, income inequality, poor working cond.
3. The steel industry.
4. Vertical integration.
5. Vast financial resources, business consolidation.
6. Creation of large corps, centralized economic power.
7. Eliminate competition, gain monopoly.
8. Gain near - complete control of oil industry, set prices, max profits.
9. Economies of scale, mergers, out - competing small cos.
10. Higher prices, reduced innovation, unfair practices.
11. Prevent monopolies, promote competition.
12. Mixed; some success in breaking monopolies, weak enforcement, legal challenges.