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Section 3
Growth of Corporations -Until the late 1800s, most businesses owned by 1 person -Proprietorship -Corporation -Business owned by investors who purchase stock -Stockà Certificate of ownership in a company -Each share of stock gets portion of profit -Dividend -Pros -Corporation can raise lots of money -Limited risk to investors -Cons -Few regulations on corporations -Laissez-faire capitalism -Gov’t does not interfere with the affairs of the economy -Possibility of monopoly -Complete control of an industry -Pros and cons of a monopoly
Oil and Steel -Oil tycoon (major businessman) Standard Oil Co. -Created “trust” -Board of directors controlling many companies -Standard Oil Trust controlled 95% of oil refining -Bought out other oil refineries -Monopoly -Tried to control all the processes related to steel-making -Both were “philanthropists” -People who give large amounts of money to charity -Gave away nearly $1,000,000,000
Corruption in Politics -GraftàMoney obtained illegally by a politician who abused his power to get the money -The time was known as “The Gilded Age” (Mark Twain) -Underneath the shiny surface lay corruption -Political Machinesà Powerful political parties -Tammany Hall (political machine in NYC) -William Tweed in charge (Tweed Ring) -Took $200,000,000 in 6 years -Spoils SystemàAwarding jobs/contracts to friends/donors -Pendleton Civil Service Act (1883) -Created a Civil Service Commission -Gives tests for gov't jobs; score determines chances for hire
-1880àJames Garfield elected president -Assassinated by an anarchist after only 80 days -Chester A. Arthur takes over -Did not get nomination in 1884 -1884àGrover Cleveland elected -Tried to clean up politics, corruption -1888àBenjamin Harrison elected (General in Union army) -Not helpful in cleaning up politics; corrupt 1892àGrover Cleveland elected again -Back by popular demand!
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