Big Business & Laws Against

ThemAndrew Carnegie : Vertical Integration

John Rockefeller : Horizontal Integration

Vertical Integration vs. Horizontal

Integration•Vertical Integration: Andrew Carnegie : Buys out the suppliers

•Horizontal Integration: John Rockefeller : Buys out competition

Big Business and the Laws Against ThemDepression

Monopoly

Interstate Commerce Act (1887)

Sherman Anti-Trust Act (1890)

Many producers hoped to eliminate competition by establishing a monopoly. Monopoly power allowed a manufacturer to dictate prices to consumers.

Government did little to regulate big business. They stayed out of business : Laissez-Faire approach.Laissez-Faire Capitalism = Free Enterprise System Some felt that the Constitution did not allow Government regulation.Prohibited unfair practices by Railroads. States began to pass laws – Congress says States cannot control Interstate Commerce1st time Congress Regulates BusinessPurpose of the Sherman Anti-Trust Act was to stop monopolies from unfair practices that limited competition.Significant change in the attitude of Congress toward the abuses of big business

The government gave up their laissez-faire approach to big business and began to prohibit unfair business practices. These laws were to first to regulate aspects of business.