The Rise And Affects Of Monopolies In

The Rise And Affects Of Monopolies In America Essay, Research Paper The United States became a large subject to influence and change during the period of 1870 to 1900. This period was mainly governed by the rise of monopolies and its affects. Through the ideals represented by monopolies, a force broke into American society that negatively changed her business structure and the way that companies were run through the late nineteenth century. America was supported with an economic system that went by the name of capitalism. Capitalism is An economic system characterized by freedom of the market with private and corporate ownership of the means of production and distribution that are operated for profit. This system let businesses run their own show. They had the freedom to grow

at their own will and over take all businesses in the way. Such businesses began to sprout under this system. New industries began and supplies began to flourish. Due to the amount of supplies that were available to the customer, competition began. This competition, brought about by the demand of supplies, created the theory of supply and demand. Supply was the amount that the companies agreed to sell at an arranged price. Demand was the amount of customers willing to pay the specific price for the product. According to this theory, if supplies rose above demand then companies are forced to lower their prices to attract sales. On the other hand, if demand exceeds supply then sellers raise prices because the customers will be willing to pay the prices. This new concept affected

the customer greatly. The prices he had to pay were dictated buy the amounts of customers there were interested in the product . Companies needed business, so they responded well to supply and demand. In order to attract the customer these companies had to present him with the better product for the lower price. Industries were at constant battle for their customers (profit). Solutions for new more efficient systems of production were being thought of by the soon to be monopolists. The result of the period of competing between companies was the rise of monopolies. A monopoly is An exclusive ownership or control, as of a given commodity of business activity . Businesses wanted to beat out every one of their competitors. The large industries like steel, oil, and railroads are great

examples of the dominance of one company and its control. Since the government did not put limits on the expansions of companies, they became animals in a lively jungle. The large companies swallowed the near by small businesses. Big businesses began to take over their industries. They eliminated their competitors. They dominated all of one entire industry. With this power they were able to reduce the amount of supplies and raise prices, in order to maximize profits. These monopolies took advantage of supply and demand. They also saw that the government was not concerned about business affairs at the time. They had complete control over who worked and who did not. They lowered wages to make production more efficient. Because one company had complete control over an entire

industry, the number of workers who needed jobs were innumerable. Theses companies were able to control what they wanted to pay their workers because there was always someone out there that needed a job no mater what the pay was. The industry of railroads began with the demand for them. This demand was very high and small companies found interest in the future of railroads. The industry was a very healthy one during its rising. The demand for transportation was starting to be met by the countless railroad companies. Soon the supplies began to exceed the demand. The industry grew too quickly. Small companies were unable to survive with the rest of it competitors. The larger companies began to grew faster and faster because they bought out the competitors. In a matter of years the