Cause 1. Why were big businesses able to thrive during the late 1800s? Effect 2. What…

Cause 1. Why were big businesses able to thrive during the late 1800s? Effect 2. What were the effects of laissez-faire capitalism? 3. What did Andrew Carnegie want to gain control of? 4. How did Andrew Carnegie reach his goal? 5. Why was JP Morgan able to control the competition? 6. What was the purpose of trusts? 7. How did forming trusts help John D. Rockefeller? 8. Why did monopolies come about? 9. What problems did monopolies create? 10. Why did the government pass the Sherman Antitrust Act? 11. What were the results of the Sherman Antitrust Act? Free enterprise belief in laissez-faire capitalism, so little or no government interference, belief in Social Darwinism. Vertical integration: he bought all of his suppliers and had total control over the cost of his product. Horizontal integration: he bought out or merged with his competitors; both processes helped create a monopoly. He merged Carnegie Steel and other steel companies to form the United States Steel Corporation and created a monopoly. He created companies that bought the stock of other companies in the steel industry. The results were that it was ineffective because it did not make clear what a trust or a monopoly was, so cases did not hold up. He was able to earn huge profits. Competing companies put control of their businesses under a single group of trustees. The government allowed business leaders to do whatever they wanted to meet success. They came about from vertical integration, horizontal integration, mergers, and trusts to control the power of giant corporations. Consumers had lower choices and had to pay higher prices. Workers had to take whatever pay they were given.