The rise and affects of monopolies in America

A detailed Summary of The rise and affects of monopolies in America

The United States became a large subject to influence and change during the period of 1870 to 1900. This period was mainly governed by the rise of monopolies and its affects. Through the ideals represented by monopolies, a force broke into American society that negatively changed her business structure and the way that companies were run through the late nineteenth century.

America was supported with an economic system that went by the name of capitalism. Capitalism is "An economic system characterized by freedom of the market with private and corporate ownership of the means of production and distribution that are operated for profit." This system let businesses run their own show. They had the freedom to grow at their own will and over take all businesses in the way. Such businesses began to sprout under this system. New industries began and supplies began to flourish. Due to the amount of supplies that were available to the customer, competition began. This competition, brought about by the demand of supplies, created the theory of supply and demand. Supply was the amount that the companies agreed to sell at an arranged price. Demand was the amount of customers willing to pay the specific price for the product. Acc

In the years between 1870 and 1900, the nation of America experienced several new aspects of business. The people of the nation felt fear for their future. Monopolies jeopardized their lives and hopes. In a sense these trust brought jobs to society, which would be a positive aspect. Yet these jobs were not secure. The laborers found work to be intolerable and found themselves wishing that they could protest. They knew that if they did they would be easily replaced. Their lives were based on fear due to the new structure of business. The lives in fear were the lives that felt the negativity of big business.

John D. Rockefeller was the owner of Standard Oil Company. His company eventually eliminated competition by buying or gaining control of refineries through the east and mid west. He was able to prove that he was the man that would the head of the industry very early into his ambitions. He controlled about 90 percent of the nation's oil business. Rockefeller integrated his oil business from top to bottom. His organizational ideas for his industry were horizontal. This meant that he followed one of his products through all of its stages. For example, Rockefeller controlled the oil when it was drilled, through the refining stage, and he maintained control over the refining process turning it into gasoline. He came to be the dominant person in the oil industry. "He believed primitive savagery prevailed in the jungle world of business, where only the fittest survived." Rockefeller believed in a very ruthless way of business. He was out to win and only win. He was now at the point that he controlled almost the entire oil industry, which was a necessity for the American people. They used his product for the heating of their homes, lamps, and for the few cars that were around. He almost had complete control over America. He treated his customers and workers cruelly and harshly. An example of his ruthless mind set and his power was when he threatened to start his own chain of grocery stores. The Standard Oil Company desperately wanted every possible company to buy their products (McCloskkey, p. 145). He threatened to start his own chain in order to force companies to buy his product and no others. If he were to begin his own chain of grocery stores, he would put all the local merchants out of business. People are living in fear of him. He has the power to raise prices as high as he wants and America has to pay for it. For the common man, live is a ni

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Approximate Word count = 1679
Approximate Pages = 7 (250 words per page double spaced)

Category: History