1. Standard 4.3

2.   Economic system that is characterized by private ownership of property for profit  Before the Civil War, corporations promoted industrialization  They were able to do this by raising capital from selling stock  After the Civil War, corporations had a greater influence on the economy, politics, and gov’t policy through mergers and monopolies What is Capitalism?

3.  What drove the economy?  The Railroad was the economic “engine”  Railroads needed:  Steel rails, wooden railroad ties and cars, the ability to transport goods  However, competition caused some “cut-throat” decisions that led to a depression

4.  Impact of Competition  Entrepreneurs began using new technology to create large corporations in hopes of controlling the entire industry  The tactics used by these entrepreneurs were done to drive out the competition

5.  Andrew Carnegie  Developed a monopoly over the Steel Industry  Introduced the Bessemer Process (A method for making steel by blasting compressed air through molten iron to burn out excess carbon and impurities)  He was able to control every aspect of the steel industry  Mining to the steel mill

6.  John D. Rockefeller  Gained full control of the oil industry “Standard Oil”  Worked to control all retail outlets  He undersold the market until all competitors were gone  Once his business was alone, he raised the prices to take advantage of zero competition

7.  Rockefeller  He initiated a device known as a “Trust”  This was a business arrangement under which a number of companies (stocks ) unite into one system; monopoly

8.   Clear off your desk except for a sheet of paper.  Create a T-Chart giving three characteristics about each of the two entrepreneurs: Andrew Carnegie and John D. Rockefeller  Write one paragraph explaining how competition can bring out the best and worst in people. Assignment

9.  Impact of Monopolies  People thought of entrepreneurs as “robber barons”  A lot of these people were corrupt  Common people voted to stop these “trusts”  Congress passed the Sherman Anti-Trust Act  Stopped monopolies from forming/using trusts

10.  Pro-Business Ideologies  Captains of Industry tried to justify their “cut throat” methods by:  Social Darwinism: survival of the fittest  Laissez Faire: no government

11.  Popular Literature  Horatio Alger: “Rags to Riches”  Supported the myth that anyone can make it if they worked hard enough  Andrew Carnegie: “Gospel of Wealth”  Provided millions to libraries and universities

12.  Positives to Industrialization  The standard of living began to improve  Opportunities were now opening for women in the work place  Due to mass production, prices began to lower on some products