1. The Business of Business is Business
Monopolies and Robber barons

2. Objective
Explain the events of the Civil War, Reconstruction, the African-American racism struggle, and the various inventions and big business of the late 19th and early 20th century

3. Guided Note Questions copy these into your notes
What was the age after the Civil War called and why?
What is the fear of monopoly to our capitalist system?
Explain ways in which a business can become “big”.
What is the difference between a captain of industry and a robber baron?
What were the justifications for the wealth that these men accumulated?
Each question should be at least 1 to 3 sentences and use direct information from the lesson

4. “The Gilded Age” era after Civil War / Reconstruction
a phrase coined by Mark Twain
it was an era of enormous growth, wealth, opportunity, innovation, etc.
however, it was also an era political corruption, scandals, greed, child labor, materialism, racial discrimination, etc.
so it was “gilded” = bright and shiny on the outside, but just ordinary or even nasty on the inside (Or think of a beautiful, shiny, red apple… that is rotten on the inside)
Guided Question 1: What was the age after the Civil War called and why?

5. “Big Business”
as America industrialized, there became a new wealthy elite that ran these industries
an important aspect of America’s capitalist economic system is the belief that the nation’s economy is strongest when there is true competition between businesses
as these businesses grew, they started to become very large and…
generally the problem with “Big Business” over the years has been the fear of Monopoly:
“complete control over an industry’s production, wages, and prices”

6. “Big Business”
monopolies are bad in a capitalist economy because you want competition to drive down prices for consumers
however, too many laws, tariffs, and regulation can choke business and cause other problems
therefore it is up to the government to ensure that monopolies do not exist, but not interfere too much into the economy
Guided Question 2: What is the fear of monopoly to our capitalist system?

7. How does a Business get “Big?”
“Mergers”
“Trusts”
consolidating business with a stock Market buyout of another business
sometimes, intimidation or shady business tactics would be used to try and ruin the business of a private company
sometimes Mergers are executed by “Holding Companies” –a company whose sole purpose is to purchase stock in other companies
consolidating business by having participating companies turn their stock over to a group of “trustees” (people who ran the separate companies as one large corporation)
each company would then split the profits made by the entire Trust

8. How does a Business get “Big?”
Business owners should consolidate as much as possible in order to control their costs of production to make more profit.
Two ways to do this:
vertical integration: buying out suppliers, shipping, and distribution in order to control all facets of a business
horizontal Integration: consolidation of companies that produce similar products
paying employees extremely low wages; Dangerous conditions
driving competitors out of business by selling at a lower price than it costs to produce.
after control of the market is achieved, hiking prices up above original levels
Guided Question 3: Explain the ways in which a business can become “big.”

10. The Men Who Profited
there were several men who used this new era of business to become powerful and wealthy including:
John D. Rockefeller – Oil industry
Andrew Carnegie – Steel industry
Cornelius Vanderbilt – Shipping industry
J.P. Morgan – Financial industry
Jay Gould – Railroad industry

11. How wealthy were the these men compared to Microsoft founder Bill Gates?

12. “Boss Tweed” and the Tweed Ring Scandal
William Marcy Tweed was known as “Boss Tweed”
head of Tammany Hall, which was the democratic political machine that
dominated New York City in the late 19th
century
ran the Tweed Ring, which was a group of
corrupt politicians between 1869 and
1879, the Tweed Ring pocketed
approximately $200,000,000 from New
York City
Thomas Nast, a political cartoonist, took on the Tweed Ring with his political cartoons

13. Thomas Nast Political Cartoon

14. Thomas Nast Political Cartoons

15. Boss Tweed and the New York Machine
Tweed Video (9:18)

16. Robber Barons or Captains of Industry?
Captain Of Industry
Robber Baron
exploited workers
corrupted the government
greedy
created Jobs
increased production
provided cheap products
gave money back to the community
Guided Question 4: What is the difference between a
captain of industry and a robber baron?

17. Justification for the Industrialists’ Wealth
Social Darwinism
Gospel of Wealth
Herbert Spencer
based on Charles Darwin’s theory of evolution
those who are rich are more fit, than those who are poor
attempted to use science to explain social classes
Andrew Carnegie
God gave wealth to the most capable people
It is the duty of the wealthy to give money to help the poor
Carnegie gave millions of dollars away to establish libraries, colleges, and museums (Carnegie Hall in NY)
Guided Question 5: What were the
justifications for the
wealth that these men
accumulated?

18. Big Business and Labor Working Conditions
Workers Exploited
prior to industrial era, most employers were small shops and companies
big business, led by people like Carnegie and Rockefeller paved the way for huge companies, which required more labor to run

19. Child Labor

20. Child Labor

21. “Galley Labor”

22. Big Business and Labor Working Conditions
Long Hours
seamstresses worked 12+ hours a day, six days a week
steel mill workers worked seven days a week
workers had no amenities (vacation, sick leave, unemployment, compensation or reimbursement for injuries suffered on the job)
injuries were common
if you were injured on the job, you were fired
workers worked in unhealthy conditions
worked 12 to 14 hours a day for $12.00 a week, which was four cents an hour

23. Big Business and Labor Working Conditions
Women and Children
sweatshop conditions were horrible
wages were so low everyone had to hold a job to survive– entire families needed to work
1890 – 4,000,000 working women
1910 – 8,000,000 working women
20% of boys and 10% of girls under age 15
(some as young as five years
old worked full time)
children worked from dawn to dusk
children were hungry, exhausted, prone to crippling accidents, and forfeiting of school
they worked tedious jobs that paid low wages.
this work was no not meaningful
there was no job satisfaction

24. Triangle Shirtwaist Company
women were banned from many unions; however, they united behind powerful leaders to demand better working conditions
the public could no longer ignore conditions in garment factories after a fire broke out in New York City
Video (9:18)

25. Answer should be three (3) sentences
Essential Question
In your opinion, should the United States government become involved in business if a monopoly could be created? Why or why not?
Answer should be three (3) sentences

26. Objective
Explain the events of the Civil War, Reconstruction, the African-American racism struggle, and the various inventions and big business of the late 19th and early 20th century