OPENING ASSIGNMENT 9/08/2015 COPY QUESTION ONLY. PLACE YOUR WRITING ASSIGNMENT FROM FRIDAY ON YOUR DESK The Supreme Court Case Munn v. Illinois decided in 1877 that the states had the right to regulate the railroads. In 1886 the Supreme Court reversed that decision and decided that it was the Federal government’s responsibility to regulate “Interstate Commerce”. The Congress Passed the Interstate Commerce Act and established a 5 member Interstate Commerce Commission. What is “Interstate Commerce”????

OPENING ASSIGNMENT 9/12/2014 What is “Interstate Commerce”???? Trade among the several states. OR Businesses and business transactions that cross state boundaries.

ANDREW CARNEGIE “One morning a white envelope was lying on my desk… all it contained was a check for $10,000 upon the Gold Exchange Bank of New York. I shall remember that check as long as I live… It gave me the first penny of revenue from capital –something that I had not worked for with the sweat of my brow. ‘EUREKA!’ I cried. ‘Here is the goose that lays the golden egg.’” Why did Andrew Carnegie received this large sum of money? What process did he go through to earn the money?

THE ANSWER! Capital in this quote is stock or shares Carnegie owned in a business. Stocks are investments in a publicly traded business that pay a dividend at the end of each quarter of the year. Carnegie earned his first stocks as payment for his work with a railroad company. Today many executives are still paid with stock. The idea is to connect pay with the company’s performance. INVESTING

NEW BUSINESS STRATEGIES Vertical Integration- The process by which a company attempts to buy the suppliers of the raw materials used to make their goods. Example: Buying the coal mine, railroad, and iron mine used to supply the Carnegie Steel Company.

NEW BUSINESS STRATEGIES Horizontal Integration- When a company attempts to buy out their competition. Example: The Carnegie Steel Company buys the smaller United Steel Company and no longer has to compete with them for business.

THE ROBBER BARONS During the late 19 th Century Industrial Capitalists were using cut-throat methods to eliminate competition and reap huge profits. Examples of business strategies include; Selling products at a loss to force competitors to go out of business. Creating monopolies through horizontal integration. Forming Trusts; or agreements to set prices and eliminate competition and keep prices high. This led critics of Industrial Capitalists to call these wealthy businessmen Robber Barons.

THE SHERMAN ANTI-TRUST ACT With more people concerned about the expanding power of corporations and their ability to eliminate competition the government finally took action. In 1890, the Sherman Anti-Trust Act made it illegal to form a trust that interfered with free trade between states or with other countries. Prosecuting corporations under the Act was not easy because the Act did not clearly define terms such as trust. The US Supreme Court threw out 7 of the first 8 cases the federal government brought against Trusts.

SOCIAL DARWINISM AND BUSINESS WAS… A theory created by the English Philosopher Herbert Spencer. He took the theory of biological evolution described in Charles Darwin’s book On The Origin of the Species and used some of the ideas to explain the evolution of human society. Social Darwinism suggested that the best and the brightest succeed because they are best suited to do so by their natural gifts; intellect, motivation, drive, and creativity.

WHAT IS SUCCESS? From the Civil War until the 1880’s the US produced 4,000 new millionaires. For the most part they supported the idea that individual responsibility and a strong work ethic would propel a person to success. Social Darwinism also suggested that and riches were a sign of God’s favor therefore the poor must be lazy or inferior people who deserve their place in the world.

TICKET OUT THE DOOR 1.What personal qualities does it take for a person to become a billionaire in today’s world? 1.Describe the attitude and traits necessary to achieve extreme monetary wealth. 1.Does this fit with your definition of success? Explain. Minimum 3 sentence response.

HOMEWORK? Complete your Extra Credit Essay and turn it in on Monday September 15, Remember it is worth 10 extra credit points on your test next week. Have a nice weekend. Remember it is a four day week next week, so please come to school Monday through Thursday. Our first Test will be on Wednesday. Have a nice weekend.