chapter 13

capitalism [capitalism: an economic system in which factories, equipment, and other

means of production are privately owned rather than controlled by government]
[Bessemer process: a method of steelmaking invented in 1855 that enabled steel to be
made more cheaply and quickly]
[factors of production: land, labor, and capital]
[corporation: a company recognized by law to exist independently from its owners, with
the ability to own property, borrow money, sue, or be sued]
monopoly: a company that completely dominates a particular industry]
[trust: a set of companies managed by a small group known as trustees, who can prevent
companies in the trust from competing with each other]
[horizontal integration: a corporate expansion strategy that involves joining together as
many firms from the same industry as possible]
[vertical integration: a corporate expansion strategy that involves controlling each step
in the production and distribution of a product, from acquiring raw materials to
manufacturing, packaging, and shipping]
laissez-faire: the idea that the free market, through supply and demand, will regulate
itself if government does not interfere]
social Darwinism: an idea, based on Charles Darwin's theory of evolution, that the bestrun businesses led by the most capable people will survive and prosper]
[Sherman Antitrust Act: an 1890 federal law that outlawed trusts, monopolies, and other
forms of business that restricted trade]
[entrepreneur: a bold, ambitious person who establishes a new business]
philanthropist: a person who gives money to support worthy causes]
chapter 14
[working class: people who work for wages in factories, mills, mines, and other
businesses, usually performing manual labor] .

[division of labor: a method in which factory production is divided into separate tasks,
with one task assigned to each worker]
[sweatshop: a small factory where employees work long hours under poor conditions for
low wages]
[child labor: the practice of using children as manual laborers]
[tenement: a run-down apartment building]
[labor union: a group of workers organized to protect the interests of its members]
[strike: a labor action in which workers refuse to go to work]
[American Federation of Labor: a national labor organization, founded in 1886, that
consisted mainly of skilled workers and focused on higher wages and shorter workdays]
[socialism: a political theory that advocates ownership of the means of production, such
as factories and farms, by the people rather than by capitalists and landowners]
[collective bargaining: negotiations between employers and employees concerning
wages, working conditions, and other terms of employment]
[Haymarket Affair: a violent clash in 1886 between union supporters and Chicago police
that divided and weakened the labor movement]
[Homestead Strike: an 1892 Carnegie Steel plant workers' strike that was broken by the
state militia and resulted in the union being shut out of the plant for four decades]
[Pullman Strike: an 1894 railway workers' strike that was broken by federal troops,
weakening the labor movement]
[anarchist: a person who rejects all forms of government]