Big Business and Organized Labor AIM: How did “big business” change the workplace? Do Now: What do all of the following have in common?

“Big Business” Free Enterprise System (capitalism): economic system where individuals (entrepreneurs) own private businesses and compete Gov’t doesn’t tell people what to sell, how to sell, or what prices to charge

New Ways of Doing Business Proprietorship: 1 person owns a small business Corporation: business owned by many investors (more than 3) who buy stock (a share) in the business Monopoly: one company controls an ENTIRE industry. There is NO competition. (ex. Collegeboard SAT) Trust: 2 companies join together to control an industry

“Robber Barons” vs. “Captains of Industry” Robber Baron: use unfair techniques to make money and eliminate competition Captain of Industry: build up the economy, create jobs, and make goods affordable

Andrew Carnegie “Big Businessman” Controlled every step of the steel-making progress steel monopoly Carnegie Steel company

“Gospel of Wealth” Belief that the rich have a duty to help the poor and improve society Philanthropist “I started life as a poor man and I wish to end it that way”

Carnegie’s “Vertical Integration” Controlled all of the steps required to change raw materials into finished goods Carnegie Steel Oil Ships Railroad Steel Mills Iron Mine

John D. Rockefeller richest man in in the oil business. Standard Oil Company Trust Oil began being used in all types of machines, like cars.

Rockefeller's “Horizontal Integration” Purchase of competing companies in the same industry Bought all oil companies

John Pierpont (J.P.) Morgan Banker Bought railroads Bought Carnegie Steel Created US Steel

Cornelius Vanderbilt Railroad Baron Owned 4,500 miles of RR tracks

Social Darwinism Survival of the fittest Gov’t stays OUT of business The “strongest” business would survive

Do you think the big businessmen were “robber barons” or “captains of industry?”