Review the Hexagonal Thinking: Big Business diagram in Step 1 of this question and locate the graphic pointing to "Connection #4 - Oil". For this set of three (3) connected hexagons, describe the connection between them. In 5-7 sentences, explain how Oil relates to Trusts and Monopolies, is it a cause-and-effect relationship? Are they part of the same historical event or process? Do they share common characteristics or themes? Refer back to specific events, individuals, or historical developments to support your explanation.

Answer 1

In the context of the Hexagonal Thinking diagram with "Oil," "Trusts," and "Monopolies," the connection revolves around the rise of corporate power in the late 19th and early 20th centuries, particularly in the industrial sector. The oil industry, exemplified by figures like John D. Rockefeller and his Standard Oil Company, played a crucial role in the establishment of trusts and monopolistic practices. Trusts were formed to consolidate control over various industries, allowing companies like Standard Oil to dominate the market and eliminate competition.

This relationship exhibits a cause-and-effect dynamic; the significant consolidation of the oil industry contributed to the emergence of monopolistic practices that characterized many sectors during this period. As trusts grew, they often operated outside the boundaries of competition, leading to the creation of monopolies that stifled innovation and manipulated prices to their advantage. The public outcry against these practices ultimately led to regulatory reforms, including the Sherman Antitrust Act of 1890, aimed at curbing the excessive power of monopolies. Thus, the connection between oil, trusts, and monopolies not only reflects a historical process of industrial consolidation but also emphasizes common underlying themes of corporate power, economic control, and the eventual push for regulatory oversight that defined the era.