Aim: How did the Industrial Revolution transform American business Aim: How did the Industrial Revolution transform American business? Do Now: List 2 modern day inventions you could not live without and explain why. HW: Big Business Emerges Worksheet
Rise of American Industry 1865-1920 Post-Civil War: US developed a prosperous, new economy based on the mass production of goods. Economic development expanded in the North, but weakened in the South. Entrepreneurs became wealthy and powerful. Government began to regulate business. Labor Unions formed to improve working conditions.
Rise of Industry in the US Packet Directions: 1. Read and do Free Enterprise System together as a class. 2. Steps on the Road to becoming Industrial Giant individually. 3. Share before/after civil war picture of business
Aim: To what extent were big business leaders considered robber barons during the Industrial Revolution? Do Now: How did the Industrial Revolution impact the American lifestyle? Give 2 examples. HW: Great Business Leaders: Heroes or Villains? Handout.
Business Practices Monopoly: When 1 company controls the supply or trade of a commodity or service Laissez faire capitalism: little to no government interference in the economy
Business Practices Vertical Integration: Process in which a company buys out its suppliers Horizontal Integration: Process in which companies producing similar product merge. Merge: A combination of two companies into one.
Vertical Integration
Horizontal Integration/Consolidation T-Mobile & Metro PCS join to form one cell phone company.
Bessemer Process Turns iron into steel by oxidizing the metal. Steel will be used for railroads and skyscrapers.
Andrew Carnegie Scottish immigrant who makes fortune in railroad industry. Became leader of steel industry. Forced workers to put in long hours at low wages. Donated money to education and medical research later in life.
John D. Rockefeller Formed Standard Oil Co. Controlled most of oil refinery business Forced railroad companies to give him special low rates for shipping oil Used horizontal integration Donated money to education and science later in life.
Cornelius Vanderbilt Most powerful railroad baron. Son of poor farmer, earned his first fortune in steamship lines. Then bought up railroad lines in NY and expanded to Great Lakes region. Donated money to education and science.
JP Morgan Consolidated steel industry and railroad industry One of most famous financiers in business history
Henry Ford Invented Model T, a car afforded by the middle class. Used assembly line which made workers expendable.
Assembly Line
Aim: How did the US government attempt to regulate business Aim: How did the US government attempt to regulate business? Do Now: Should the government be allowed to have control over the economy? Explain. HW: Prepare for Open Notebook Exam tomorrow.
Business Regulation Wabash v. Illinois (1886) Supreme Court Case: Issue: Whether a state government has the power to regulate railroad prices on that portion of an interstate journey that lies within its borders. Outcome: Only Congress, not individual states, have the power to regulate interstate commerce.
Interstate Commerce Act (1887) Required that railroads charge fair rates to their customers and make those rates public. Also created the Interstate Commerce Commission (ICC).
Sherman Antitrust Act (1880) Authorized federal action against any "combination in the form of trusts or otherwise, or conspiracy, in restraint of trade." Any attempt to monopolize trade or commerce is made illegal.
Big Business DBQ Packet Robber Baron v Captain of Industry