The Social

1
The Social Political Environment of
BusinessBA 107 Discussion Section Week 3The
Rise of Big Business
2
The Rise of Big Business

• What conditions enabled big business to grow in
  the US?
• Are those conditions the same as those that
  fostered big-business growth in Europe?

3
The Rise of Big Business in the US

• Government less is best, but helped create RR
• Technology investments into RD, communication,
  surplus, driven by labor force?
• Capital markets created to organize borrowers
  and lenders
• Legal limited liability laws allowed
  corporations to grow
• Social US values (Puritan, meritocracy,
  entrepreneurial)

4
Big Business in Europe

• Divide between Britain and rest of Western Europe
• What drove the differences?

5
Government Legislation

• How has American ideology changed in the century
  since the passage of the Interstate Commerce and
  Sherman Antitrust Acts?

6
Comparisons to the Present

• Are there "robber barrons" today in the sense of
  a few business leaders who enjoy immense economic
  power?
• How do the trends of today compare to those of
  the 1990s and 1980s

7
Video Questions to consider

• 1. What is the significance played by the
  railroad industry in the development of the
  American economy?
• 2. How did the involvement of the federal
  government in the project affect the political
  strategies of the players involved?
• 3. How did the scale and scope of the project
  affect the honesty of the people involved in it?
  

8
Video Key take away points

• Railroads were the next great technology after
  the stream engine, and helped to make the US the
  world's largest economy.
• By 1860, nearly all our railroad tracks were in
  the eastern US. The transcontinental railroad
  eventually became the largest project (the "moon
  project") of the 19th century, and railroads
  became the biggest employer in the US.
• The federal government was instrumental in
  helping to sponsor and fund the project, which
  introduced an important role for non-market
  strategies (e.g., using lobbyists).
• The scale and scope of the project led to various
  stock swindles and congressional payoffs by
  people like Durant.
• What does this suggest about the prevalence of
  scandals and slimy dealings during boom periods?
• The project enabled coast to coast travel in one
  week -- "instantaneous" in that day.