Your Warm-up . . . What do you see?

It depends on Your Perspective! Young Old Lady Woman

It’s the Same With Business Leaders of the Day! Cornelius Vanderbilt Railroads John D. Rockefeller Oil Andrew Carnegie Steel Philip Armour Meatpacking J.P. Morgan Banking

John D. Rockefeller and the Standard Oil Company Wealthy individual who saw the oil industry as a way to get richer Made illegal deals with railroads to transport oil cheaper, thus weakening other refineries that he would eventually buy Utilized horizontal integration or consolidation for business purposes

Horizontal Integration/Consolidation When all of your competitors have been bought out Think MONOPOLY Standard Oil Company/John D. Rockefeller

Controlling the Market Bob’s Pizza Delaware Pizza Happy Time Pizza Pizza Pizza Using Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops! Bob’s Pizza Bob’s Pizza Bob’s Pizza Bob’s Pizza

Andrew Carnegie Scottish Immigrant Captain of Industry for steel production in Pittsburgh Used Bessemer Process to produce stronger steel Utilized vertical integration or consolidation

Vertical Integration/Consolidation Controlling businesses related to various phases of production for a product Own all elements of a business Carnegie Steel/Andrew Carnegie

Controlling the Market Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza! Bob’s Pizza Bob’s Trucking Company Bob’s Cheese Factory Bob’s Farm

It’s the Same With Business Leaders of the Day! Cornelius Vanderbilt Railroads John D. Rockefeller Oil Andrew Carnegie Steel Philip Armour Meatpacking J.P. Morgan Banking

Robber Barons Business leader who made a fortune by stealing from the public. Drained natural resources, paid low wages to workers, required long hours of employees

They persuaded public officials to interpret laws in their favor. They ruthlessly drove their competitors to ruin. Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions.

“Robber Barons”

Captains of Industry The business leaders who served their nation in a positive way. Increased the supply of goods by building factories. Raised productivity and expanded markets.

Created jobs that enabled many Americans to buy new goods and raise their standard of living. Also created museums, libraries, and universities, many of which still serve the public today. Carnegie Hall

Carnegie as a Philanthropist A Philanthropist uses wealth to improve society Carnegie funded the building of libraries, education facilities, and music/arts facilities

“Gospel of Wealth” Carnegie’s philosophy - A person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

Monopoly vs. Cartel Monopoly – one company with complete control of a product or a service Cartel – a loose association of businesses in a similar field or that make the same product and agree to limit supply to drive up prices (OPEC)

Which Led to the Sherman Antitrust Act Enacted in 1890 Effort by Congress to end trusts Ineffective due to lack of enforcement More about it in future units

growth peak recession depression Business Cycle The growth and contraction of a nation’s economy – New Problem in the late 1800s

Industrial Revolution Working Conditions

Growing Work Force Immigrants Former Farm Families Women and Children Does not include African Americans

Survival Guide for Poor Families (aka, immigrants!) Force children to leave school for work Send children as young as age 6 to work Ask for aid from a private charity (church, etc.) Government Welfare is non-existent at this time!

Workday Length Typically 12 hours/day, 6 days/week

Division of Labor Changes Manufacturing When someone completes one task as part of the job Positive: MASS PRODUCTION – it increases business productivity Negative: workers no longer take pride in work and removes creativity

Think About Making Shoes as an Example of This Concept! He may never work on shoes!