THE GILDED AGE

SHERMAN ANTITRUST ACT

• Passed in 1890 to restore competition
• Courts used the act to stop trade unions
• Vaguely defined
• Wasn't strongly enforced until end of 19th century

VERTICAL INTEGRATION:

• When the supply chain is owned by one company
• Lower transaction costs
• Lower uncertainty
• Monopolization of markets

HORIZONTAL INTEGRATION:

• Where one large company owns lots of small companies in an industry
• Smaller businesses couldn't get into market
• Monopolized industries
• Led to Sherman Antitrust Act

NATIONAL POLITICS

• Dominated by corruption through bribes
• Elections had high turnout
• Elections were close
• Capitalist ideology discouraged political activism

GOVERNMENT

• Saw itself as responsible for essential services but not welfare
• "Machine politics": rigged elections, bribery
• Didn't regulate businesses
• Officials distributed favors to family and friends