1. The Incorporation of America: The Rise of Big Business

2. Essential Question To what extent should the government regulate competition to make it fair for all? To what extent should the government stay out of the way to keep society competitive? How does capitalism and democracy fit together? Industrialization increased the standard of living and the opportunities of most Americans, but at what cost? To what extent should the government regulate competition to make it fair for all? To what extent should the government stay out of the way to keep society competitive? How does capitalism and democracy fit together? Industrialization increased the standard of living and the opportunities of most Americans, but at what cost?

3. The Pendulum Swings Less Government Control More Government Control

4. 16 th -26 th Presidents of the U.S. 1865-1900 16.Lincoln 17.Johnson 18. Grant 19. Hayes 20. Garfield 21. my guy 22. 23. 24. 25. 26. Theodore Roosevelt

5. 16 th -26 th Presidents of the U.S. 16.Lincoln 17. Johnson 18. Grant 19. Hayes 20. Garfield 21. Chester Arthur 22. Grover Cleveland 23. Benjamin Harrison 24. Grover Cleveland 25. William Mc Kinley 26. Theodore Roosevelt

6. What Americans Earn 50% - less than $30K 20% - $30K-$50K 20% - $51K-$100K 5% - $101K-$200K 4% - $201K-$500K.5% - $5Mil - $10Million.5% - $10Milllion - Up

7. Causes of Rapid Industrialization 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the West.  Aided the development of other industries. 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the West.  Aided the development of other industries.

8. Causes of Rapid Industrialization 3.Technological innovations.  Bessemer and open hearth process  Refrigerated cars  Edison o “Wizard of Menlo Park” o light bulb, phonograph, motion pictures. 3.Technological innovations.  Bessemer and open hearth process  Refrigerated cars  Edison o “Wizard of Menlo Park” o light bulb, phonograph, motion pictures.

9. Thomas Alva Edison “Wizard of Menlo Park”

10. The Light Bulb

11. The Phonograph (1877)

12. The Ediphone or Dictaphone

13. The Motion Picture Camera

14. Alexander Graham Bell Telephone (1876)

15. Alternate Current George Westinghouse

16. Alternate Current Westinghouse Lamp ad

17. The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903

18. Model T Automobile Henry Ford I want to pay my workers so that they can afford my product! Henry Ford I want to pay my workers so that they can afford my product!

19. “Model T” Prices & Sales

20. U. S. Patents Granted 1790s  276 patents issued. 1990s  1,119,220 patents issued.

21. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. Causes of Rapid Industrialization

22. Learning Targets: 1.How did Laissez Faire Capitalism fuel rapid Industrial Growth? 2.Explain the business practices of vertical integration and horizontal integration 3.What was social Darwinism and how was it related to laissez faire capitalism?

23. New Business Culture 1. Laissez Faire  the ideology of the Industrial Age.  Natural Laws guide the economy  Individuals should compete freely in the marketplace.  Everyone benefits from a free market economy  No need for government regulation or involvement in the economy  Natural Laws guide the economy  Individuals should compete freely in the marketplace.  Everyone benefits from a free market economy  No need for government regulation or involvement in the economy

24. Laissez Faire Capitalism Definition – Private citizens and firms own, operate and regulate property and business. Government plays a limited role (or no role) in ownership and regulation. Goal – to earn a profit$$

25. Characteristics of Capitalism Competition determines increases or decreases in price. Based on the law of supply and demand. Supplies of goods and services are determined by the demand for the products. The market determines what to produce. No guarantee of a job – people are employed by private businesses that fluctuate between highs and lows Business can go bankrupt. Quality of goods is high. Prices of some goods can also be high. Goal is to produce the highest quality product and the lowest possible price. Healthcare and education are not provided by the state.

26. What kind of Fries do you like?

27. New Type of Business Entities

28. What is this??

31. The evolution of viewing movies

32. New Type of Business Entities Trust:  Horizontal Integration  John D. Rockefeller Trust:  Horizontal Integration  John D. Rockefeller  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  U. S. Steel  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  U. S. Steel

33. Iron & Steel Production

34. U. S. Corporate Mergers

35. Standard Oil Co.

36. New Business Culture: “The American Dream?” Protestant (Puritan) “Work Ethic”  Horatio Alger [100+ novels] Protestant (Puritan) “Work Ethic”  Horatio Alger [100+ novels] Is the idea of the “self-made man” a MYTH??

37. 2. Social Darwinism × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” Herbert Spencer

38. Social Darwinism Charles Darwin’s theories of evolution applied to business and society. The theory that those who are the fittest for survival enjoy wealth and success, while the poor remain poor because they are unfit. Don’t upset the natural system of rich and poor.

39. 2. Social Darwinism in America William Graham Sumner Folkways (1906) $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile! $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile!

40. The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell $ Wealth no longer looked upon as bad. $ Viewed as a sign of God’s approval. $ Christian duty to accumulate wealth. $ Should not help the poor. $ Wealth no longer looked upon as bad. $ Viewed as a sign of God’s approval. $ Christian duty to accumulate wealth. $ Should not help the poor.

41. New Financial Businessman The Broker:  J. Pierpont Morgan The Broker:  J. Pierpont Morgan

42. Wall Street – 1867 & 1900

43. The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911) Frederick W. Taylor The Principles of Scientific Management (1911)

44. The Reorganization of Work The Assembly Line

45. % of Billionaires in 1900

46. % of Billionaires in 1918

47. The Protectors of Our Industries

48. The ‘Bosses’ of the Senate

49. The ‘Robber Barons’ of the Past

50. Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money?

51. William Vanderbilt $ The public be damned! $ What do I care about the law? H’aint I got the power? $ The public be damned! $ What do I care about the law? H’aint I got the power?

52. “On Wealth” Andrew Carnegie $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.”

53. New Type of Business Entities 1.Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. 2.Trust  John D. Rockefeller 1.Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. 2.Trust  John D. Rockefeller  Standard Oil Co.

54. Regulating the Trusts 1877  Munn. v. IL 1886  Wabash, St. Louis & Pacific Railroad Company v. IL 1890  Sherman Antitrust Act  in “restraint of trade”  “rule of reason” loophole 1895  US v. E. C. Knight Co. 1877  Munn. v. IL 1886  Wabash, St. Louis & Pacific Railroad Company v. IL 1890  Sherman Antitrust Act  in “restraint of trade”  “rule of reason” loophole 1895  US v. E. C. Knight Co.

55. Relative Share of World Manufacturing

56. Modern ‘Robber Barons’??