Team Leader’s meeting – after Benchmark DO NOW: Continue Industry Activity List What is the difference between a “mom & pop” store and a corporation? Can you give examples for:

New ways of organizing business in the 19th century (mid-late 1800’s):

Three terms that describe our economy: Capitalism: private ownership. Owner decides what/how much to make, where to sell, etc. Free Enterprise: government usually does not interfere with business Laissez Faire: French term: allow to do (let be)- “government hands off”

New ways to expand businesses: Corporations: sold shares of stock in their company to investors, run by a Board of Directors that make the day-day decisions. Monopolies: control of an entire industry Trust: groups of corporations run by a single Board of Directors

Powerful 19th century leaders: Vanderbilt: Railroads (“Commodore” & Railroad Baron) Carnegie: Steel (“King of Steel”) Rockefeller: Oil (Standard Oil Trust had 90% control of the Oil industry) J.P. Morgan: Banking (loaned capital ($)

Imagine - Imagine that you owned a company, what methods would you use to eliminate your competition?

Vertical and Horizontal Integration Andrew Carnegie used Vertical Integration: owning the businesses involved in each step of a manufacturing process. To lower production costs, Carnegie bought the iron ore mines, the coal fields, and the railroads needed to supply his steel mills. Rockefeller used both vertical and horizontal integration. Horizontal integration: owning all the businesses in a certain field

Example: Vertical Integration

Example: Horizontal Integration

Robber Barons or Captains/Pioneers of Industry? Robber Baron: low wages to employees, limited competition, ruthless methods of doing business Captain of Industry: developed efficient methods of business, allowed individuals to invest, donated millions to charity (philanthropists)

Government Involvement: Sherman Antitrust Act: outlawed monopolies and trusts that restrained (stopped) trade or competition. Effects: Why do you think this Act was difficult to enforce?

Corporations: Positives: Helped American industries to grow Thousands of people bought stocks. Millions of $ borrowed from banks Stockholders are not personally responsible for the debts of the business Stockholders may sell their shares Negatives: Large corporations force many smaller businesses to close Limited competition allowing prices to increase

Team Activity Directions: In packets: Teams review and evaluate the assigned information (bio information, political cartoon, and quotes) on either Andrew Carnegie or John D. Rockefeller Use key information to complete your Robber Baron and Captain of Industry/Industrial Pioneer scale (3 bullet points for each side). Based on your scale information, evaluate whether your team’s assigned business leader was a Robber Baron or Industrial Pioneer.

Venn Diagram: Directions: Develop a Venn Diagram that includes information about the following: Early years Key industries Methods used Philanthropy