1. Your Warm-up . . .
What do you see?

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

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

4. John D. Rockefeller and the Standard Oil Company
Wealthy individual who saw the oil industry as a way to get richer
Made illegal deals with railroads to transport oil cheaper, thus weakening other refineries that he would eventually buy
Utilized horizontal integration or consolidation for business purposes

5. Horizontal Integration/Consolidation
When all of your competitors have been bought out
Think MONOPOLY
Standard Oil Company/John D. Rockefeller

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

7. Andrew Carnegie Scottish Immigrant
Captain of Industry for steel production in Pittsburgh
Used Bessemer Process to produce stronger steel
Utilized vertical integration or consolidation

8. Vertical Integration/Consolidation
Controlling businesses related to various phases of production for a product
Own all elements of a business
Carnegie Steel/Andrew Carnegie

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

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

11. Robber Barons
Business leader who made a fortune by stealing from the public.
Drained natural resources, paid low wages to workers, required long hours of employees

12. They persuaded public officials to interpret laws in their favor.
They ruthlessly drove their competitors to ruin.
Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions.

13. “Robber Barons”

14. Captains of Industry
The business leaders who served their nation in a positive way.
Increased the supply of goods by building factories.
Raised productivity and expanded markets.

15. Created jobs that enabled 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

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

17. “Gospel of Wealth”
Carnegie’s philosophy - A person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

18. 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 (OPEC)

19. Which Led to the Sherman Antitrust Act
Enacted in 1890
Effort by Congress to end trusts
Ineffective due to lack of enforcement
More about it in future units

21. growth peak recession depression
Business Cycle
The growth and contraction of a nation’s economy – New Problem in the late 1800s

22. Industrial Revolution
Working Conditions

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

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

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

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

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