Big Business: Bad or Good?

 

Advantages of Big Business:

       Mass Production:

              reduces overhead and prices

              introduced new more modern machinery      

              purchased raw materials in large quantities at

                     low prices

              ultimately produced better goods at cheaper

                     prices

 

       Wide Distribution:

              large scale advertising

              national markets as opposed to local

      

       Efficient Management:

              raising large amounts of capital to expand

              could afford the best executives

              maintained large research laboratories

 

Abuses by Big Business:  

      

       Elimination of Competition

              price wars drove out small business

      

       Power over the consumer:

              once market control is achieved, drive prices up

              and quality is not necessary

      

       Exploitation of Workers:

              larger businesses could control local economies,

              keep wages low,  and prevent unions from forming

 

       Influence over government:

              bribing officials and buying votes in Congress