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6.3 BIG BUSINESS AND LABOR

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AMERICAN HISTORY IIMR. HOOD05 DECEMBER 2013

6.3 BIG BUSINESS AND LABOR

AMERICAN HISTORY IIMR. HOOD`S NOTES05 DECEMBER 2013

KEY IDEATHE EXPANSION OF INDUSTRY

RESULTED IN THE GROWTH OF BIG BUSINESS AND PROMPTED LABORERS TO FORM UNIONS TO BETTER THEIR

LIVES.

WHY IT MATTERS NOWMANY OF THE STRATEGIES USED TODAY IN INDUSTRY AND IN THE LABOR MOVEMEMNT, SICH AS

CONSOLIDATION AND THE STRIKE, HAVE THEIR ORIGINS IN THE LATE

19TH CENTURY.

INTRODUCTION

ANDREW CARNEGIE

BORN IN SCOTLAND

HIS PARENTS WERE

PENNILESS + MOVED TO THE USA

CARNEGIE ROSE

FROM RAGS TO RICHES

BECAME A MODEL OF THE AMERICAN SUCCESS

STORY

OBJECTIVE 1:IDENTIFY MANAGEMENT AND BUSINESS STRATEGIES THAT

CONTRIBUTED TO THE SUCCESS OF BUSINESS

TYCOONS SUCH AS ANDREW CARNEGIE

CARNEGIE ENTERED THE

STEEL BUSINESS

CARNEGIE USED MANAGEMENT

STRATEGIES

MADE BETTER

PRODUCTS FOR CHEAPER

NEW MACHINERY AND

TECHNIQUES

ACCOUNTING SYSTEMS

TRACKED EVERY PENNY

ENCOURAGED COMPETITION

AMONG EMPLOYEES

CARNEGIE USED BUSINESS

STRATEGIES

CARNEGIE TRIED TO CONTROL STEEL

INDUSTRY

(1) VERTICAL INTEGRATION

BOUGHT OUT SUPPLIERS

(2) HORIZONTAL INTEGRATIONBUY OUT

COMPETITORS

CARNEGIE PRODUCED LARGEST PORTION OF

NATION`S STEEL

OBJECTIVE 2:EXPLAIN SOCIAL

DARWINISM AND ITS EFFECTS ON SOCIETY.

CARNEGIE EXPLAINED

SUCCESS DOWN TO HARD WORK

PHILOSOPHERS BELIEVED

DOWN TO SOCIAL DARWINISM

UNRESTRAINED COMPETITION WILL ENSURE

SURVIVAL OF FITTEST

BUT BUSINESSMEN TRIED TO CONTROL COMPETITION

MERGERS ARE WHEN ONE COMPANY BUYS OUT

ANOTHER

MERGERS LED TO

MONOPOLIES

MONOPOLIES CONTROLLED PRODUCTION,

WAGES + PRICES

OTHERS FAVORED TRUST

AGREEMENTS

LIKE JOHN D. ROCKEFELLER

STANDARD OIL COMPANY

PARTICIPANTS TURNED STOCK OVER

TO TRUSTEES

TRUSTEES: PEOPLE WHO RAN SEPERATE

COMPANIES AS ONE LARGE ORGANIZATION

TRUSTS WERE NOT LEGALMERGERS

USING TRUSTS, ROCKEFELLER GAINED TOTAL CONTROL OF OIL

INDUSTRY

THEN ROCKEFELLER LOWERED WAGES + RAISED OIL PRICES

CRITICS CALLED HIM A ROBBER

BARON

SHERMAN ANTITRUST ACT

MADE TRUSTS ILLEGAL

BUT FOUND IT IMPOSSIBLE TO

ELIMINATE TRUSTS

THROUGHOUT THEIR LIVES BOTH CARNEGIE + ROCKEFELLER DONATED

MILIONS TO CHARITY

OBJECTIVE 3:SUMMARIZE THE EMERGENCE AND

GROWTH OF UNIONS.

EXPLOITATION + UNSAFE WORKING CONDITIONS DREW

WORKERS TOGETHER

SEVEN DAY WORK WEEK, LOW PAY

NO VACATIONS, INJURIES COMMON

WORKERS JOINED TOGETHER IN A NATIONWIDE LABOR

MOVEMENT

CRAFT: AMERICAN FEDERATION OF LABOR (AFL) LED BY SAMUEL

GOMPERS

INDUSTRY: AMERICAN RAILWAY UNION LED BY

EUGENE V. DEBS

SOCIETY: INDUSTRIAL WORKERS

OF THE WORLD

OBJECTIVE 4:EXPLAIN THE VIOLENT

REACTIONS OF INDUSTRY AND GOVERNMENT TO

UNION STRIKES.

INDUSTRY + GOVERNMENT

RESPONDED FORCEFULLY TO UNIONS

STRIKES TURNED ANGRY + VIOLENT

VIOLENCE TURNED PUBLIC AGAINST LABOR

MOVEMENT

THE MORE POWERFUL THE UNIONS BECAME, THE MORE EMPLOYERS CAME TO

FEAR THEM

INDUSTRY DID ALL THEY COULD TO STIFLE

THE UNIONS