Robber Barons vs. Captains of Industry -Pros and Cons of Industrialists -Treatment of workers -Antitrust Movement

Captains of Industry I helped make life easier for you If you work hard you can be rich too! I helped make life easier for you We made this country an empire I created jobs We make all those nice things you like! I provide affordable products

Robber Barons We started corporations You work for pennies while I make millions The people you vote for work for me I gamble with the taxpayers money Corporations are people and have rights---right? I get government bailouts…

Opposing View Points Captains of Industry Robber Barons Created Jobs Increased production Provided cheap products Gave money back to the community Helped build the nation Robber Barons Exploited workers Corrupted the government Greedy Offered bribes for political favors Above the law

Corporations are people???? A corporation: Is owned by many people (stockholders) But treated as a single entity It can Own property Pay taxes Sue or be sued Make contracts

Corporations Stocks Stockholder Shares of a corporations Share risk and reward Stockholder People who own a corporations via stocks Buying/Selling STOCKS allows corporations to expand/increase Production Employees Factory Research & Development

Corporations More money brings Economies of Scale New technologies More workers New machines Bigger factories Economies of Scale Corporation can make more goods at a lower cost….passing the saving on to you 

Costs Operating Fixed Money used to make your business GO!!! Water Electricity Employees Shipping Wages Materials Money that you have to pay regardless if your business goes or not… Loans Mortgages Taxes Rent

POOLS An affiliation of two or more people/companies formed for the purpose of attempting to manipulate a products price and/or volume. = gas station $ $ $ $ $

Vertical Integration Corporation owns all of the companies which it depends on to improve profits. Cut out the profit margins of “middle man” companies. Ex. McDonalds

Horizontal Integration Combining or merging LIKE companies into one LARGE company. Ex…Blockbuster Video

Monopoly Exclusive control of a product or service in a particular market that makes it possible to manipulate prices.

TRUSTS BIG OIL Trustee 1 Joe’s Oil Trustee 2 Bill’s Oil Trustee 3 Juan’s Oil $$$ $$$ an organization of businesses designed to operate like a monopoly to circumvent anti-monopoly laws

Holding Companies Corporation that doesn’t really do anything except own a significant amount of stock in real companies. Board of Directors CEOs

Cutting Costs Skilled Workers replaced by Unskilled machine operators. $10 a day Skilled Workers replaced by Unskilled machine operators. Production cost lower Deflation = profits Value of $ rises Prices drop Workers wage has more buying power Terrible working conditions Unsafe Unsanitary Long hours Low wages $3 a day

Workers Unite TRADE UNIONS- Limited to Skilled Laborers Iron workers Shoemakers Industrial Unions- Common Laborers and craft Workers Carpenters Painters artisans

Knights of Labor – formed Workers Organize Goal #1: Shorter work day Goal #4: Worker owned factories boycotts Knights of Labor – formed in 1869 as the first labor union in the nation. Strikes Goal #2: End child labor Goal #3: Equal pay for men and women arbitration

Blacklisted Anyone that tried to start a union considered a troublemaker. Could not get a job anywhere Had to Move Change Name Change Identity

LOCKOUT COMPANY ANSWER TO STRIKE NO PAY NO WORK HIRE REPLACEMENT WORKERS “STRIKE BREAKERS” SCABS

STRIKES Workers walk off the job & protest working conditions Early Strikes resulted in Violent Riots Government normally sided with Business because they shared similar interest in companies making a profit Pullman Strikes Great Rail Road Strike Haymarket Riots

American Federation of Labor (AFL) umbrella organization made up of many different trade unions. Led by Samuel Gompers Unions stay out of Politics Closed Shops- Companies only hire Union Workers

Unions of the AFL - CIO United Farm Workers of America Screen Actors Guild United Steel Workers of America American Postal Workers Union International Association of Firefighters American Federation of Teachers

Justifications for Industrialists’ Extreme Wealth Gospel of Wealth Andrew Carnegie God gave wealth to the most capable people It is the duty of the wealthy to give money to help the poor Carnegie gave millions of dollars away to establish libraries, colleges, and museums Social Darwinism Herbert Spencer Based on Charles Darwin’s theory of evolution Those who are rich are more fit, than those who are poor Attempted to use science to explain social classes

Captains of Industry Andrew Carnegie- US Steel J. P. Morgan- Banking, and Insurance Companies John Rockefeller – Standard Oil Cornelius Vanderbilt- Rail Roads