1. Warm-Up 4/12/10 Over the break if you were watching the news you might have heard about the mine in West Virginia. With a hazardous workplace, does this make the mine owner a Robber Baron?

2. Robber Barons ► Business leaders who made their fortune by stealing from the public. ► Drained natural resources, paid low wages to workers, required long hours of employees

3. Robber Barons ► Persuaded public officials to interpret laws in their favor ► Ruthlessly drove their competitors to ruin ► Paid workers low wages in dangerous and unhealthful conditions

5. Captain of Industry ► Business leaders who served the nation in a positive way ► Increased supply of goods by building factories ► Raised productivity and expanded markets

6. Captain of Industry ► Created jobs that enabled many Americans to buy new goods and raise their standard of living ► Created museums, libraries and universities (may of which still serve the public today)

7. Robber Baron v. Captain of Industry ► Robber Barron – negative term ► Captain of Industry – positive term

8. Andrew Carnegie

9. ► Captain of industry for steel production in Pittsburgh ► Used Bessemer Process to produce stronger steel ► Utilized vertical integration for business purposes ► Scottish

10. Philanthropist ► Uses wealth to improve society ► Carnegie funded the building of libraries, education facilities, and music/arts facilities

11. Gospel of Wealth ► Philosophy that states a person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

12. Social Darwinism ► Based on Darwin’s Theory of Evolution (1859) regarding natural selection and survival of the fittest ► States that society should allow people to do the same with business – the government should stay out!

13. Monopoly ► One company with complete control of a product or a service

14. Trust ► 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

15. Cartel ► A loose association of businesses in a similar field or that make the same product and agree to limit supply to drive up prices

16. Sherman Anti-Trust Act ► Enacted in 1890 ► Effort by Congress to end trusts ► Ineffective due to lack of enforcement

18. John D. Rockefeller

19. ► Wealthy individual who saw the oil industry as a way to get richer ► Formed Standard Oil Company

20. John D. Rockefeller ► Made illegal deals with railroads to transport oil cheaper, thus weakening other refineries that he would eventually buy ► Utilized horizontal integration for business purposes

21. Horizontal Integration/Consolidation ► Many firms that are part of the same business ► Standard Oil Company/John D. Rockefeller

22. Controlling the Market Bob’s Pizza Delaware Pizza Happy Time Pizza Using Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops! Bob’s Pizza

23. Vertical Integration/Consolidation ► Many businesses related to various phases of production for one product ► Carnegie Steel/Andrew Carnegie

24. Controlling the Market Bob’s Pizza Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza! Bob’s Farm Bob’s Cheese Factory Bob’s Trucking Company

25. Frederick Winslow Taylor ► Organized and systemized factories ► Goal: get workers to produce more in less time

26. Division of Labor ► When on completes one task as part of the production Artisinal System Division of Labor

27. ► Positive: increases productivity for businesses ► Negative: workers no longer take pride in work and removes creativity

28. ImmigrantsImmigrants Former Farm FamiliesFormer Farm Families Women and ChildrenWomen and Children Does not include African AmericansDoes not include African Americans Growing Work Force

29. Poor/Needy Families ► Children as young as 6 sent to work ► Children forced to leaveschool

30. Poor/Needy Families ► Private charity might aid families ► Government Welfare does not exist at this time!

31. Workday in the 1860s ► Typically 12 hour days ► 6 day weeks ► After 1868, GovernmentEmployeesspared

32. Closer 4/12/10 With all the facts about business that we learned today, do you think this is a positive step for American society? Why or why not? Make sure to provide evidence to back up your claim.