A Level History - America - Practice Exam

Which of the following was true about JP Morgan's financial practices?

1. He was known for philanthropy in healthcare

2. He faced criticism for creating monopolies

3. He avoided any form of competition

4. He emphasized small loan systems for growth

The correct answer is: He faced criticism for creating monopolies

JP Morgan's financial practices were characterized by his significant role in consolidating various industries, which often led to the formation of monopolies. During the late 19th and early 20th centuries, Morgan orchestrated numerous mergers, bringing together companies across industries such as steel, railroads, and banking. This consolidation not only increased efficiency and profitability for those companies but also allowed Morgan to wield considerable influence over entire sectors of the economy. Critics of Morgan pointed to his practices as a means of stifling competition, arguing that the monopolistic structures he helped create limited consumer choice and allowed companies to exert excessive control over prices and wages. This critical perspective on his role in creating monopolies reflects broader concerns during the Progressive Era about the power of corporate giants and the need for regulatory reform to protect consumers and promote fair competition. Consequently, the assertion that he faced criticism for creating monopolies aligns with historical assessments of his legacy in the financial and industrial landscape of America.