Final answer:
During the industrial era, big businesses grew extremely powerful by controlling entire production cycles and using strategies like vertical integration. These corporations, led by influential figures such as Carnegie and Rockefeller, were supported by a laissez-faire government approach. Concern for their vast influence and worker exploitation eventually led to labor reforms and regulatory measures.
Step-by-step explanation:
Characteristics of Big Business During the Industrial Era
The industrial era saw the emergence of big business practices that significantly altered the economic landscape. Central to this transformation were colossal corporations formed as a result of rapid business growth and considerable profitability. These entities gained enough capital to monopolize entire industries, often controlling every step of the production cycle, from sourcing raw materials to selling finished products in stores. This control enabled them to eliminate or suppress competition effectively. Enterprises such as the Carnegie Steel Company and Standard Oil perfect examples of big business, employing strategies like vertical integration, cost-cutting, and paying low wages to dominate their markets.
The governmental economic policies of the time promoted a laissez-faire approach, under the influence of social darwinism. This hands-off stance allowed businesses to regulate themselves, proliferating the growth of mammoth corporations. Technological advancements in steel refining, communications, and electricity also played a pivotal role in revolutionizing American industry, giving rise to influential businessmen known as 'robber barons' or 'captains of industry', depending on the perspective.
However, by the early 1900s, concerns over the concentration of power and the potential exploitation of workers led to the rise of labor unions and the implementation of employee protection laws. The influence of business magnates like the Rockefellers and the Vanderbilts extended into politics, reshaping social structures and contributing to the development of social ideas that persist to present times.