Historical Context: Business ruled during the years after the Civil War. Just before the Civil War, Congress
Question:
Historical Context:Business ruled during the years after the Civil War. Just before the Civil War, Congress passed legislation allowing businesses to form corporations without a charter from the U.S. government. After the Civil War, these corporations came to dominate much of American business, and, in the process, to define American life.The era of Big Business began when entrepreneurs in search of profits consolidated their businesses into massive corporations, which were so large that they could force out competition and gain control of a market. Control of a market allowed a corporation to set prices for a product at whatever level it wanted. These corporations, and the businessmen who ran them, became exceedingly wealthy and powerful, often at the expense of many poor workers. Some of the most powerful corporations were John D. Rockefeller's Standard Oil Company, Andrew Carnegie's Carnegie Steel, Cornelius Vanderbilt's New York Central Railroad System, and J.P. Morgan's banking house. These corporations dominated almost all aspects of their respective industries; by 1879, for example, Rockefeller controlled 90 percent of the country's oil refining capacity. Much of the public saw the leaders of big business as "robber barons" who exploited workers in order to amass vast fortunes.In 1882, Rockefeller further solidified this control by establishing a monopoly or trust, which centralized control of a number of oil-related companies under one board of trustees. As a result, Rockefeller owned nearly the entire oil business in the United States, and he could set prices at will. Companies in other industries quickly imitated this trust model and used their broad market control to push prices higher.Question:This was certainly a rough and tumble world.Could it have been otherwise?Explain!