1. Your Warm-up... Do you see an old woman or a young lady?

2. It depends on Your Perspective! Young Old Lady Woman

3. Whats Your Perspective? Man Playing Young Saxophone Woman

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

5. Different Leaders Organize in Different Ways! Horizontal Integration/Consolidation Or Vertical Integration/Consolidation They prosper due to lack of government involvement

6. John D. Rockefeller and the Standard Oil Company Wealthy man who saw the oil industry as a way to get richer Made illegal deals with railroads to transport oil cheaper – weakens refineries that he buys Utilized horizontal integration or consolidation

7. Horizontal Integration/Consolidation Think... MONOPOLY John D. Rockefeller and Standard Oil Company

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

9. Andrew Carnegie Scottish Immigrant Leader of steel production in Pittsburgh Used Bessemer Process Utilized vertical integration or consolidation

10. Vertical Integration/Consolidation Think... Owning all phases of production in a business Andrew Carnegie and Carnegie Steel

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

12. Andrew Carnegie Steel John D. Rockefeller Oil Cornelius Vanderbilt Railroads J.P. Morgan Banking Philip Armour Meatpacking The Business Leaders of the Day Were Good and Bad!

13. Robber Barons Business leaders who get rich off the public Drained natural resources Paid low wages, required long hours of workers

14. Persuaded public officials to interpret laws in their favor. Drove their competitors to ruin.

15. Robber Barons

16. Captains of Industry Business leaders who served their nation in a positive way. Increased the supply of goods, raised productivity and expanded markets.

17. Created jobs that allow 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

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

19. FROM HERE TO END – DID NOT USE FOR ALL CLASSES Fall 2013

20. Gospel of Wealth Gospel of Wealth Carnegies philosophy - A person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

21. 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 (drugs or OPEC)

22. Concerns Led to the Sherman Antitrust Act Enacted in 1890 Congress wanted to end trusts Was ineffective – not enforced More about it in future units

23. Business Cycle The growth and contraction of a nations economy – New Problem in the late 1800s

24. FROM HERE TO END – DID NOT USE AT ALL Fall 2013

25. Industrial Revolution Working Conditions

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

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

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

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

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