The Growing of Businesses

How the expansion happened so quickly

How & Why They Grew

With the industry growing in the United States companies were able to produce goods at a wide spread level thus giving the "Factors of Production" land, labor, and capital. With the United States abundant natural resources industrial production was not a problem. Labor was needed to make materials into goods and the population of the United States doubled from 1860 to 1900 giving factories more workers. Capital is the equipment needed for a business which includes - buildings, machinery, and tools. The way the capital expanded was by becoming a corporation so that investors could buy stock in the business which would give the business money.

The Big Man In Charge

John D. Rockefeller a 26 year old set up a oil refinery in Cleveland, Ohio. His plan of building his empire was to use "Horizontal Integration" the process of combining competing firms into one corporation. The Corporation made its own capital by producing its own barrels, tank cars, and pipelines. Rockefeller formed a "Trust" and then went on to have complete control of the oil industry making a "Monopoly"

How & Why the Government restricted it

The Government passed laws such as the "Sherman Antitrust Act" in hopes "to protect trade and commerce against unlawful restraint & Monopoly". The idea was to stop large corporations from using unfair prices and not improving goods. Although the act did little to stop this, it did stop a strike by railroad workers that could have restrained the nations delivery system.