1. Opener: Let’s do some economics

2. Why is coal cheap? Why are diamonds expensive?

3. Why have gas prices risen over the past few years?

4. How much would you pay for a glass of lemonade? Explain : $???

5. Story time about Mr. Fries’ lemonade stand

6. In the 1900’s the U.S. government had a “hands off” approach to the economy. They believed in a system of pure capitalism.

7. Capitalism - Economic system in which supply and demand determine prices. - Goal of Capitalism?

8. Laissez-Faire Government should keep its hands off of businesses

9. During the early 1900s, some Americans made their fortunes through industry

10. Entrepreneur A person who takes a risk and starts a company.

11. Andrew Carnegie John D. Rockefeller

12. Monopoly One business has complete control of a product or service

13. Can someone explain the board game Monopoly to me?

14. Produced 1/4 of American steel “Steel King” Poor Scottish immigrant $25 million per year

15. Used Bessemer Process – allowed for large skyscrapers to be built

16. Guess where Carnegie ran his business…..

17. One business controls all aspects of production

19. Philanthropist Someone who makes charitable donations to benefit human welfare

20. Carnegie Mellon University

21. Carnegie Hall

22. Carnegie Library

23. Merger: combining many competing firms into one John D. Rockefeller pioneer of the merger mov’t (Standard Oil Company)

24. Trusts A group of separate companies that are placed under the control of a single board

25. Horizontal Consolidation All competing companies are merged into 1 area of business

27. Rockefeller Institute for Medical Research

28. University of Chicago

29. Carnegie and Rockefeller were Captains of Industry because they: -Increased the supply of goods -Created hundreds of jobs -Built museums and donated $

30. Or were they??????? ???

31. Robber Barons -Stole from the public -Drained natural resources -Controlled government -Drove small business out of business -Paid workers very little -Horrible working conditions

32. Late 1800s Gilded: Anything that glitters on the surface but is rotten underneath Coined by Mark Twain

33. Why would this period of time be known as the Gilded Age?

34. Much wealth was being created by a few but there was a lot of poverty & bad working conditions

35. Is this OK? English philosopher Herbert Spencer, said yes!

36. Application of Darwin’s theory of evolution to human society

37. Progress occurs through competition in which the weak fall & the strong thrive