Question

List two reasons why people had favorable opinions about the impact of big business.

Answer 1

Economic prosperity and the spread of stock ownership among the middle class led to favorable opinions about big business. Social darwinism, suggesting minimal government intervention, allowed businesses to thrive, fueling a competitive economy.

Step-by-step explanation:

People had favorable opinions about big business for a variety of reasons. One reason was economic prosperity; during the era when companies like US Steel and Standard Oil were dominant, unemployment was low, wages were high, and shortages appeared to be a thing of the past. This climate of economic growth gave the impression that everyone, on Wall Street and Main Street, was prospering together. The second reason was the spread of wealth through stock ownership. With traveling brokers selling stocks door to door, middle-class Americans began investing in big corporations. As these investors became shareholders, they too benefited from the profits of these large corporations.

In addition, the concept of social darwinism supported the idea that business should operate without government intervention, allowing the most competent to succeed, thus contributing to a strong and competitive economy. This hands-off approach was seen to encourage innovation and efficiency within the marketplace.

Answer 2

One reason can be that big business don't have to keep things in inventory all the time and have their investments locked that way. If you don't need something you don't have to have it. Another reason is that big business reduces the need for overtime and only work that is needed is done.