Corporations and Big Business - Research Paper Example

Two developments sparked the rise of Big Business in the mid-1800s: the Industrial Revolution and the building of a vast railroad system. The Industrial Revolution made it possible to mass-manufacture all the parts of the railroad system from the rails to the engines. The railroad spread to almost all corners of the United States, carrying thousands of people and tons of goods long distances in a relatively short amount of time. Because the railroad system was so large, it required management and communication over long distances as well, changing the way Americans thought about work.

In fact, the railroad is considered the first big business (Carey, u.d.). Americans moved from working in small enterprises as the usual employment to accepting that each worker was part of a larger entity, Big Business. Since it cost so much money to build factories, hire dozens or hundreds of workers, and keep the whole business going, Big Business was usually run by the rich and powerful who could leverage either their own fortunes or bankers’ money. In return the business owners sold stock, changing the way Americans viewed business enterprises.

While the work itself was performed by other people, anyone with money could invest a small amount in a big business and see a return on investment. Small big businesses began to consolidate with each other, creating even larger businesses with financial leveraging power and each step of expansion gave rise to new technologies, forms of communication, and additional transportation. Big businesses also created an income gap.