I. Monopoly Total control of an industry by one company or person. Hurts consumers. Raises prices, lowers quality of goods. Competition is good for the consumer. WHY?? 50% or more of one industry=monopoly.
Rockefeller and Carnegie use ruthless methods to form huge Monopolies. Carnegie Steel 1875. Standard Oil 1870. Both men control more than 50 % of their industry.
yellow for coal, orange for ore, and blue for steel scrap STEEL CITY--PITTSBURGH, Pa
TRUSTS or Monopolies dominating AMERICAN BUSINESS -- Oil, Tobacco, leather, beef, sugar, etc. Robber Baron: A person that uses illegal means to control an industry and wipe out competition.
III. J.P. Morgan Buys Carnegie Steel in 1901 for 400 million dollars. Combines it with other steel companies to form U. S. Steel. U.S. Steel will become the first billion dollar company SO RICH THAT BANKS BORROW FROM HIM!!
IV. Were they Robber Barons or Captains of Industry? Captain of Industry: A person that creates jobs and helps the economy of a country. Robber Baron: A person that uses illegal means to control an industry and wipe out competition.
II. Oil and Steel Benefited from a demand for their steel and oil Supply and demand ????? Steel replaced brick and lumber By 1900, Carnegie is #1 producer of steel in world Bessemer Process -- eliminates impurities in iron Pittsburgh -- massive steel mills