The Growth of Big Business — Reading Comprehension

During the late 1800s and early 1900s, the United States experienced rapid economic change as small businesses consolidated into large corporations that came to control entire industries. This period, known as the Progressive Era, saw the rise of powerful companies such as Standard Oil and U.S. Steel. The process of industrialization transformed the nation’s economy, but it also created new challenges and conflicts.

Several factors led to the growth of big business. New inventions and technological advances, including the use of electricity and the expansion of railroads, made production faster and cheaper. Business leaders, called entrepreneurs, looked for ways to increase profits and reduce competition. Some companies formed trusts, which were combinations of firms that acted as a single corporation to control prices and limit competition. As John D. Rockefeller, the founder of Standard Oil, once wrote, "The day of combination is here to stay. Individualism has gone, never to return." This quote shows how the idea of working alone was replaced by the belief that joining together brought more success.

While the growth of big business led to lower prices for products and more jobs for workers, it also had negative effects. Many Americans feared that monopolies—companies that completely controlled a product or service—used their power unfairly. Some workers faced poor conditions and low wages, while small businesses found it difficult to compete. Farmers and consumers worried that large corporations could set prices as they wished, leaving ordinary people with few choices.

Reformers responded to these challenges by demanding new laws. The Sherman Antitrust Act of 1890 was the first major law passed by Congress to limit the power of trusts and monopolies. Although it was not always enforced strictly at first, it represented a new way of thinking about the government’s role in the economy. Some people supported big business for creating wealth and progress, while others argued it threatened democracy by giving too much power to a few individuals.

Not everyone agreed on what should be done. Some business leaders believed that competition was wasteful and that large corporations benefited everyone through efficiency. Others believed that too much power in the hands of a few was dangerous. Workers began to organize labor unions to fight for better pay and conditions, adding to the debate about how to balance business growth and fairness.

The growth of big business during the Progressive Era reshaped American life. Cities grew rapidly as people moved to work in factories. The government began to play a larger role in the economy, and debates about the proper balance between business and regulation continue today. The story of big business is one of both opportunity and conflict—a reminder that economic progress often brings complex challenges.

Interesting Fact: By 1900, Standard Oil controlled over 90% of oil refining in the United States, making it one of the most powerful companies in history.

What was the Progressive Era?

Who was John D. Rockefeller?

What did the Sherman Antitrust Act do?

Why did entrepreneurs form trusts?

How did big business affect workers?

What was a main concern about monopolies?

Standard Oil controlled 90% of oil refining. True or false?

What is a 'trust'?