Presentation on theme: "The Rise of Big Business"— Presentation transcript:
1 The Rise of Big Business An Industrial SocietyChapter 20, Section 3
2 Essential QuestionsShould private businesses and corporations have the right to run their businesses how they see most “fit”? Why or why not?What should be the roll of a government during a time of great wealth for a few, and much poverty for many?
3 Jay Gould Jay Gould was a Robber Barron Robber Barron: Was in the Railroad IndustryWorth $77 Million in 1892Robber Barron:Business Leader Who Becomes Wealthy Through Dishonest MethodsJay Gould Used Illegal Methods to Become Rich:Bribing OfficialsSelling Fake Stock
6 How to Raise Investment Capital? Most Businesses in the 1800’s were Owned by 1 PersonBusinesses Owners Wanted to Buy New Equipment & New Technologies (Factory Equipment) Very Expensive!How Can You Raise Investment Capital? (Story of Rob!)
7 CorporationsCorporations are Businesses that are Owned by Multiple InvestorsOwner of Business Sells Shares of Stock (Part of the Business) to Investors to Raise Investment CapitalGeorge Steinbrenner
9 Advantages of Corporations vs. Private Businesses Corporations Can Raise Large Amounts of $$$ Money by Selling StockA Corporation Continues After Its’ Founders Die (President, Vice Presidents, Etc…) Banks are MORE Likely to Lend to Corporations then Private BusinessesIf a Corporation Goes into Debt, Investors (Stock Holders) DO NOT have to Pay the Debt! Safer to Invest
10 John D. Rockefeller Most Famous Robber Barron in U.S. History! Had a Monopoly on the OIL Industry!You MUST Know John D. Rockefeller!His Company Was Called Standard Oil!
11 MonopolyA Monopoly is a Company that WIPES OUT its’ Competitors & Controls an IndustryPurpose of the Game is to Have All the $$$ and Bankrupt Your Opponents! Charge High Rent!Monopolies Have the Only Product, They Charge High Prices $$$Ah Pizza & EspizitosRockefeller Had a Monopoly on the Oil Industry!
12 Rockefeller’s Strategy Put His Competitors Out of Businesses!Rockefeller Built Oil Refineries Around the United StatesMade Secret Deals with Railroads to Carry His Oil at Lower Rates than his CompetitorsBuilt and Purchased His Own Pipelines to Carry Oil (Did Not Have to Pay Rent)
14 Rockefeller Formed the Standard Oil Trust A Trust is a LEGAL (In 1882) Body Created to Hold Stock in Many Companies in the SAME IndustryRockefeller Purchased Stock in All the Other Oil Companies in U.S. in 1882That Way He Had Ownership of All Oil Companies! (A Monopoly!)What Would Steinbrenner Do if He Had Red Sox Stock?
16 Price of GasolineBy 1880, Rockefeller Controlled 95% of All Oil Companies in the U.S.Rockefeller Raised the Price of Oil!Americans Couldn’t Get Oil Anywhere Else!Standard Oil Earned Hundreds of Millions of $$$ Dollars
22 Andrew Carnegie Andrew Carnegie Had a Monopoly in the STEEL Industry Differed From RockefellerCreated a Monopoly & Beat His Competition by Making a Better & Cheaper ProductCompany Was Called U.S. Steel
23 Andrew CarnegieSought to Control All of the Processes Related to the Making of SteelBought the Mines That Supplied the Iron Ore to Make SteelBought the Ships & Railroads that Carried Iron Ore to Carnegie Steel Mills
24 Philanthropists People Who Give Large Amounts of Money to Charities Rockefeller and Carnegie Gave Away Hundreds of Millions of DollarsWhy???
25 Rockefeller John D. Rockefeller Gave Away Over $500 Million Donated to University of Chicago & NYURockefeller CenterRockefeller Estate
26 Carnegie Andrew Carnegie Gave Away Over $350 Million Dollars Carnegie and Mellon University (Engineering School)Built Hundreds of Public Libraries
29 The Gilded AgeWhat Do These 2 Images Tell You About Life During the Gilded Age?Why Did Mark Twain Call the Late 1800’s The Gilded Age?What Does it Mean to Gild Something?
30 The Gilded Age (Late 1800’s) To Gild Something is to Cover it With GoldMark Twain Wrote The Gilded Age: A Tale of TodayWhat Was Mark Twain Trying to Say About U.S. Society During the Late 1800’s?Wrote About Great Disparity Between Rich & PoorCorruption in GovernmentPoverty
31 In the South (1860-1914) After the Civil War, Slaves Were Freed! YIPPEEEEEEE!Former Slaves/Poor Whites:No JobNo EducationNo HouseNo FoodNo $$$Screwed!Turned to Sharecropping
32 SharecroppingThe Southern States Stayed Agricultural (Farming) for the Most Part After the Civil WarFormer Slave Owners Had Large Plantations, But NO WorkersHired Poor Whites & Former Slaves to Work the FieldsRented the Land to the Workers – Workers Had to Pay in Crops
33 SharecroppingAs a Sharecropper, You Rented a Piece of Land from a LandownerYou Had to Pay For:Land That You RentedTools/EquipmentSeeds to PlantHousingFood*** Very Similar to Slavery, EXCEPT You Had a Choice!
34 Essential QuestionsShould private businesses and corporations have the right to run their businesses how they see most “fit”? Why or why not?What should be the roll of a government during a time of great wealth for a few, and much poverty for many?