1. Section 3
Big Business and Labor

2. Carnegie Innovates
By 1899, Carnegie Steel Company produces more steel than all the factories in Great Britain combined. Why? How?
Business Strategies
New machinery, techniques, accounting
Encouraged competition, attracted talent by offering stock
Vertical integration – bought out his suppliers in order to control the raw materials and transportation systems
Horizontal integration – companies producing similar products merge

4. Social Darwinism and Business
Social Darwinism – philosopher Herbert Spencer applies Darwin’s theory of evolution to human society.
Consequently,
The government should not interfere in business.
Doctrine of Laissez faire
Ultimately, the poor must be lazy or inferior people who deserved their place in the lower class

5. “a man who dies rich, dies disgraced”
The Gospel of Wealth 1899
What are the ways to use wealth???
Donated over $100 million to Carnegie Corporation
$20 million to colleges
Created science research institute
$60 million to build over 3,000 libraries

6. Growth and Consolidation
Fewer Control More
Growth and Consolidation
Monopoly – complete control over an industry’s production, wages, and prices
Standard Oil Company led by John D. Rockefeller- joined with competing companies in trust agreements

7. “Robber Barons” Rockefeller controlled 90% of oil refineries
Paid employees low wages
Sold oil at a loss to drive out the competition
However, Rockefeller also
Gave away over $500 million
 an American capitalist of the latter part of the 19th century who became wealthy through exploitation (as of natural resources, governmental influence, or low wage scales) 

8. Sherman Antitrust Act
Illegal to form a trust that interfered with free trade between states or with other countries
Eventually the Supreme Court ruled that Standard Oil was an illegal monopoly and it broke into several different companies