So…you want to know how I became wealthy? Let me explain. Well, in a capitalist society… There is competition or the idea of free enterprise in which privately owned businesses compete freely. In what ways is competition a good thing for consumers (people who buy products)?.
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So…you want to know how I became wealthy? Let me explain.
Well, in a capitalist society…
There is competition or the idea of free enterprise in which privately owned businesses compete freely.
In what ways is competition a good thing for consumers (people who buy products)?
II hated competition. I wanted to control the prices. So, what did I do? Let me explain.
Pretend you own a candy corporation (business owned by many investors) that sells a variety of chocolates.
There are other candy companies in the area that also sell a variety of chocolates.
How could you make sure that people in the area buy your product and not the other company’s product?
If it were me, I would think about and answer the following question:
What does a candy company need in order to sell a variety of chocolates?
Form a monopoly –
have your company control most or all businesses in a particular industry.
Form a trust – team up with another corporation to reduce competition and from prices within the same range
Your candy company trusts the Hershey candy company to work together.
This is what happened during and as a result of the second industrial revolution (1870-1920).
Entrepreneurs (someone who sets up a new business to make profit) formed giant corporations and monopolies or trusts.
Turn and talk to a neighbor about the following question:
During the second industrial revolution, businessmen like Andrew Carnegie, John D. Rockefeller, and J.P. Morgan amassed large fortunes. Why do you think these men were able to become so wealthy?
Why were men like Carnegie and Rockefeller able to become so wealthy
1) Laissez-faire economy – lack of government regulations
2) Social Darwinism –belief that the strongest or fittest should survive and flourish in society, while the weak and unfit should be allowed to die.
3) Unskilled industrial laborers worked an average of 60 hours per week for 10 cents an hour.