1. Robber Barons or Captains of Industry?
Discuss corporate mergers that produced trusts and cartels and the economic and political policies of industrial leaders.

2. Homework
Read and take Cornell Notes on section 14.2 to prepare for an activity on Tuesday.
Challenge Option – Come up with 8 cause and effect statements from the reading.
Example:
The South had fewer people  they lost the Civil War

3. 3 New Vocabulary words…
Mass Production – Used by Henry Ford to make cars more affordable.
Monopoly: Oil and steel industries were both controlled by monopolies at the beginning of industrialization.
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. If all search engines were controlled by the same people.
Corporation: Google, Netflix, Apple. Any company that sells stocks.

4. HOT ROC: Do billionaires have a responsibility to help the poor?
Do millionaires?
*HW Check
Organizational Categories for your project.
Project Reminder:
Essay outline with a thesis statement for the project is due on Friday

5. Simulation
T-shirt shops
where will you shop?

6. Big Business and the Government
Horizontal and Vertical Integration
Textbook, page 171

7. Andrew Carnegie $75 Billion
Don’t take notes on this section
Andrew Carnegie came from Scotland with his parents in 1848.
In 1861, at the age of 26, he started up the Freedom Iron Company, and used the new Bessemer process for making steel
He formed all of his companies into the Carnegie Steel Company in 1899, which controlled raw materials, manufacturing, storage, and distribution for steel.
Vertical Integration

8. John D. Rockefeller $192 Billion
Don’t take notes on this section
Born in 1839
His working life started as a bookkeeper
He established one of the first oil refineries
1870—With partners, forms a business trust: Standard Oil
At its peak, controls 90% of all oil companies
Horizontal Integration

9. The Gilded Age…1870s-1900 Where was the most money made?
Was this positive or negative for America?
1870
1900
Steel Production
77,000 tons
11 million tons
Oil production
5 million barrels
63 million barrels
Railroad track
53,000 miles
200,000 miles

10. What would Rockefeller say…
Monopolies are good because we can produce goods at a lower cost to consumers!
Now everyone can have cheap oil and gas.
We use our wealth to benefit others through our charitable donations (philanthropy)

11. Big Business and the Government: POV
Leave Business Alone
Limit Business
Laissez-faire
Social Darwinism
Sherman Anti-Trust Act
1911--Splits Rockefeller’s Standard Oil into 34 companies
(A U.S. Court of Appeals found in 2001 that Microsoft violated the Sherman Act antitrust law.)

12. What would the Populists (poor farmers) say?
Monopolies are bad because they control the whole industry and there is no competition over prices.
We have to pay high prices to ship our wheat on the trains!
And these companies pay low wages to their workers!

13. Draw a Below the Surface graphic from each point of view…
1. According to Rockefeller—monopolies are like…
2. According to the Populists—monopolies are like…

15. Who are the billionaires (Robber Barons) of today?
Walton- founder of Wal-Mart
Warren Buffett- CEO Berkshire Hathaway (holding company) and investor
Ellison- Oracle

16. Forbes 2011 Rank Name Worth Age Source Country 1
Carlos Slim Helu & family
$74 B 71
telecom
Mexico 2
Bill Gates
$56 B 55
Microsoft
USA 3
Warren Buffett
$50 B 81
Berkshire Hathaway 4
Bernard Arnault
$41 B 62
LVMH
France 5
Larry Ellison
$39.5 B 67
Oracle 6
Lakshmi Mittal
$31.1 B 61
Steel
India 7
Amancio Ortega
$31 B 75
Zara
Spain 8
Eike Batista
$30 B 54
mining, oil
Brazil 9
Mukesh Ambani
$27 B
petrochemicals, oil & gas 10
Christy Walton & family
$26.5 B 56
Walmart