1. Big Business and Labor part I terms  Andrew Carnegie  Vertical and horizontal integration  Social Darwinism  John D. Rockefeller  Sherman Anti-trust act

2. Andrew Carnegie “a man who dies rich dies disgrace”  Carnegie Steel in 1899  Management practices  New ways to make better and cheaper products  Business Strategies  Vertical integration:  Horizontal Integration:

3. Carnegie cont.  1901: controlled almost entire steel industry  Net Worth: $298.3 billion (based on Forbes 2008) (in 2007 dollars)  Gospel of Wealth:  Donated about 90% of his wealth to public schools and libraries  Video Video

4. Social Darwinism  1859: Charles Darwin: “On the Origin of Species”

5. John D. Rockefeller  Standard Oil Company  Business Strategies  Formed TRUSTS (TRUESTEES):  Created MONOPOLIES:  Paid employees low wages  Drove competitors out of business

6. Rockefeller Cont.  Gave away over $500 million to medical research and founded 2 universities  Net Worth: $318.3 billion (Forbes 2008)  video video

7. Problems with Trusts  Reduced competition  Larger companies taking over smaller ones  Political influences  Sherman anti-trust Act:

8. Why did Labor Unions form?  1. Unsafe working conditions:  2. Long hours & low pay  3. Child Labor: