1. 6.3 Notes
Big Business and Labor

2. Andrew Carnegie’s Innovation
Entered steel business in 1873
Management Practices:
1. Make products better (machinery/techniques)
2. Attracted talented people with stock options.
Wanted to control steel industry.
- vertical integration – bought out suppliers
- horizontal integration – bought out competitors

3. Social Darwinism and Business
Social Darwinism – theory that success & failure in business were governed by natural law and that no one could intervene.
Social Darwinism explained Carnegie’s success and also the class structure in America.

4. Fewer Control More
Trusts – controlled stock of many corporation (made a big corporation) – all members received dividends ($ earned by companies).
Monopoly – complete control over an industry.
Industrial growth was concentrated in the North.

5. Unions
Factory work was long, hard, unsanitary, and unrewarding (pg ).
Workers joined together to fight for change.
Craft unionism – included skilled workers from one or more trades.
Industrial unionism – all laborers in a specific industry.
Many union groups won working rights.

6. Strikes Turn Violent
Sometimes strikes interfered with production or peoples lives.
Strikes became violent.
Scabs – strikebreakers
Women were banned from many unions.
Employers became fearful of powerful unions and started refusing to deal with them.