2 Division of Labor Changes Manufacturing When someone completes one task as part of the jobPositive: increases productivity for businessesNegative: workers no longer take pride in work and removes creativity
3 Think About Making Shoes He may never work on shoes!
4 Growing Work ForceImmigrantsFormer Farm FamiliesWomen and ChildrenDoes not include African Americans
5 Survival Guide for Poor Families (aka, immigrants!) Send children as young as age 6 to workForce children to leave schoolAsk for aid from a private charity (church, etc.) Government Welfare is non-existent at this time!
10 They persuaded public officials to interpret laws in their favor. They ruthlessly drove their competitors to ruin.Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions.
11 Captains of IndustryThe business leaders served their nation in a positive way.Increased the supply of goods by building factories.Raised productivity and expanded markets.
12 Created jobs that enabled many Americans to buy new goods and raise their standard of living. Also created museums, libraries, and universities, many of which still serve the public today.Carnegie Hall
13 Robber Baron versus Captain of Industry Robber Baron – negativeCaptain of Industry – positive
15 Andrew Carnegie Captain of Industry for steel production in Pittsburgh Used Bessemer Process to produce stronger steelUtilized vertical integration or consolidationScottish Immigrant
16 Carnegie as a Philanthropist A Philanthropist uses wealth to improve societyCarnegie funded the building of libraries, education facilities, and music/arts facilities
17 “Gospel of Wealth”Carnegie’s philosophy - A person should be able to make as much money as they can, BUT they should also use their wealth to improve society.
18 Social DarwinismBased on Darwin’s Theory of Evolution (1859) regarding natural selection and survival of the fittestBusinessmen are justified in using any means to become rich and powerful – the government should stay out!
19 American businessmen adopted eagerly the ideology of Social Darwinism in order to defend their business practices as "natural."James J. Hill, a leading "Robber Baron" of the railroad-building era, saw the chance to justify his actions with "scientific" terminology:"The fortunes of railroad companies are determined by the law of the survival of the fittest." --James J. Hill
20 Monopoly vs. CartelMonopoly – one company with complete control of a product or a serviceCartel – a loose association of businesses in a similar field or that make the same product and agree to limit supply to drive up prices
21 Formed Standard Oil Company John D. RockefellerFormed Standard Oil Company
22 John D. Rockefeller and the Standard Oil Company Wealthy individual who saw the oil industry as a way to get richerMade illegal deals with railroads to transport oil cheaper, thus weakening other refineries that he would eventually buyUtilized horizontal integration or consolidation for business purposes
23 Also important re: Standard Oil ... Trusts A group of separate companies that are placed under the control of a single managing board (Board of Directors)Trusts limit competition and cause prices to rise
24 What’s so bad about Monopolies? They underpay workers and drive competitors out of businessThey offer consumers NO CHOICE!Prices rise and quality falls!
25 Which Led to the Sherman Antitrust Act Enacted in 1890Effort by Congress to end trustsIneffective due to lack of enforcement
27 Vertical Integration/Consolidation Buying out or controlling businesses related to various phases of production for one productCarnegie Steel/Andrew Carnegie
28 Controlling the Market Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza!Bob’s PizzaBob’s Trucking CompanyBob’s Cheese FactoryBob’s Farm
29 Horizontal Integration/Consolidation When you buy out all of your competitors (firms that are part of the same business)Standard Oil Company/John D. Rockefeller
30 Controlling the Market Bob’s PizzaDelawarePizzaHappy TimePizzaPizza PizzaUsing Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops!Bob’s PizzaBob’s PizzaBob’s PizzaBob’s Pizza
31 Business Cycle The growth and contraction of a nation’s economy growth peak recession depressionBusiness CycleThe growth and contraction of a nation’s economyA new concept in the mid-late 1800s