Chapter 14, Section 2 Big Business & Organized Labor p. 488-493 As businesses grow in size & power, workers organize to demand better conditions.

New Ways of Doing Business Main Idea: Business leaders develop new ways to raise money needed for expansion. entrepreneur - someone who sets up new businesses to make a profit corporations - businesses owned by many investors Shares of stock are sold to investors. Investor runs risk of profit or loss. Banks loan big $ to corporations Industry grows faster Bankers like J.P. Morgan make huge profits and have tremendous political influence in the early 20th century. Does he look familiar? John Pierpont (J.P.) Morgan One of the richest and most powerful men in the U.S.

Table Question: Describe how buying & selling shares of stock helps investors & corporations make (or lose) money. Stocks and bonds

Growth of Big Business Main Idea: By the late 1800s, many major industries are dominated by a few giant companies. monopoly - a company that controls most or all business in a particular area Andrew Carnegie: Self-made man Born poor, works for his money Starts U.S. Steel Company Produces more steel than the entire nation of England. Owned mines, mills, rail & shipping lines – (vertical monopoly) Ruthless businessman but practices the “Gospel of Wealth” Gives almost all his $ to charity “I started life as a poor man and I wish to end it that way.” –A. Carnegie Andrew Carnegie (1835-1919) -Steel magnate

John D. Rockefeller Also born poor Founder of Standard Oil Trust Largest Oil Refinery in the nation a legal arrangement grouping a number of companies under a single board of directors Trusts are seen as a threat to free enterprise the system in which privately owned businesses compete freely Justifies business success due to “Social Darwinism”. As in nature, businesses survive because of adapting to change “survival of the fittest” John D. Rockefeller -Oil Magnate

Is America really the “Land of Opportunity”? Did our natural resources & system of government set us up for success? Here is a list of the richest people in the History of the world: 4 are monarchs The rest AMERICANS ALL born in the middle of the 19th century List obtained from the book Outliers -by Malcolm Gladwell (2008) U.S. $ U.S. $ MONARCH U.S. $ MONARCH U.S. $ U.S. $ MONARCH MONARCH U.S. $

Here is the rest of the top 30: MONARCH U.S. $ Here is the rest of the top 30: - 7 more Monarchs (including Queen Elizabeth & Cleopatra) - 11 more Americans (including Sam Walton & a few Jrs.) And the rest of the top 50… - 15 more Americans - some from the 20th Century MONARCH U.S. $ MONARCH U.S. $ MONARCH U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ MONARCH U.S. $ U.S. $ U.S. $ MONARCH U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ MONARCH U.S. $ U.S. $ U.S. $ U.S. $ U.S. $

of the wealthiest people EVER made their MONEY in the U.S. MONARCH U.S. $ 51 out of 75 (68%) of the wealthiest people EVER made their MONEY in the U.S. And we’re less than 250 years old Do you think Rockefeller & Carnegie could have shared some of their $600 BILLION with their workers? U.S. $ U.S. $ U.S. $ U.S. $ U.S. $ U.S. $

Changes in the Workplace   Main Idea: As industry grows, working conditions often get worse. Post Civil War factories become large, impersonal Many women & children work in sweatshops - manufacturing workshops where workers toil long hours under horrible working conditions for low pay No school = dismal future Dangerous working conditions: Fibers & dust in textile mills, coal mines, & tobacco factories 1911 - Fire destroys Triangle Shirtwaist Factory in New York Kills 146 people, mostly women Sweatshop: New York early 20th Century

President of the Knights of Labor Workers Organize   Main Idea: Despite many obstacles, organized labor begins to grow in the late 1800s. Knights of Labor: one of the 1st unions in the U.S. Founded by Uriah Stephens as a secret organization Allows women and minorities to become members Led by T. Powderly, the Knights of Labor establish the modern-day goals of future labor unions: 8-hour work day equal pay for equal work government regulation of trusts end to child labor Violent strikes weaken influence Terence V Powderly President of the Knights of Labor

American Federation of Labor (AFL) Forms local unions into one national union Limits membership to skilled laborers Believes in collective bargaining unions negotiate with management for workers as a group Organizes mineworkers and steelworkers “accomplish the best results in improving conditions of the working people…today and tomorrow.” Women play major role in union building “Mother” Jones fights for kids Samuel Gompers Founder of the AFL

Federal troops protect train from striking workers. Workers Strike! George Pullman cuts wages of his workers Raises rents for the housing in his company town Workers go on strike shutting down rail hub, stop all rail lines through the Midwest. Cut off the East coast from the West Coast President Cleveland orders federal troops to Chicago U.S. Attorney general breaks strike with a court order Claims the strike violates the U.S. Constitution because the union’s actions are restricting interstate trade. TRUE? Federal troops protect train from striking workers.

The Homestead Strike from: Ten Days That Unexpectedly Changed America July 6, 1892 “Darkest day in American labor history” Steel mill near Pittsburgh, owned by Carnegie Run by union Frick wants to break union, hires non-union when contract expires Workers attack, take over 6 workers, 3 Pinkertons die National Guard called in SCABS take union jobs Union destroyed for 40 years. Sets gap between labor and management in America By 1900, only 3% of American workers belong to unions. Andrew Carnegie Steel worker keeping watch on Pinkertons Henry Clay Frick

“robber barons” or “captains of industry”? “Philosophical Chairs” Choose a side: Were industrial giants like Rockefeller and Carnegie good guys or bad guys? “robber barons” or “captains of industry”?