where the gilded age begins: america, an industrial nation

Where the Gilded Age Begins:

America, An Industrial Nation

By early 20th century, America became the largest industrial nation in the world!

In 1901 British writer, W.T. Stead wrote, “what is the secret of American success?”

What do you think was the secret of American success?

What was the secret of American success?

Natural Resources: oil, coal, iron, water, lumberNew Inventions: Drake Well, Bessemer process

(iron into steel), light bulb, electricity distribution, telephone, sewing machine

Expansion and mechanization of factoriesSurge in immigrationRise of corporationsGovernment support of business / “laissez faire”Railroads

The “secret” to American success???

The Rich Get Richer and Richer

What was the secret of their success?

$100 million when died 1877

Gave away over $350 million

1902 worth $200 million

1901 purchased Carnegie Steel for $480 million

http://www.forbes.com/forbes-400/Richest people in America 2014

Monopolized their Industries

Andrew Carnegie Dominated the STEEL INDUSTRY – CARNEGIE

STEEL COMPANY Bessemer process – made good quality steel cheap

VERTICAL INTEGRATION – own/control everything needed for a specific industry (for Carnegie to produce steel) No middle man Sell same product as other companies, but for a lower price and receive

the same profit!!! What will then happen to the other companies???

Absorb other steel companies bc no one can compete, Carnegie then had a MONOPOLY over the steel industry

How Apple Made ‘Vertical Integration’ Hot Again — Too Hot, Maybe

Time Magazine - March 16, 2012 http://business.time.com/2012/03/16/how-apple-made-vertical-integration-hot

-again-too-hot-maybe/

Monopolized their Industries

John D. Rockefeller Dominated the OIL Industry –

STANDARD OIL

Horizontal Integration – bought out other companies within the same sector Lower prices so others cannot compete

(so low you may not profit for a period) Special deals from railroads – rebates

Smaller companies could not compete Once other companies go under, raise

prices since there is no competition (MONOPOLY over the industry)

Now what can Standard Oil do?

Railroads become a PROFITABLE and POWERFUL business!

Why would rail roads be so profitable? Powerful? They controlled the price of goods by controlling

the price of transportationThey determine who shares on those profits

(everybody wants to); they determine which companies succeed and which fail…why?

Who uses the railroads to become rich and control their respective industries?

Who loses out???The smaller businesses

http://www.investopedia.com/articles/investing/120914/most-powerful-and-influential-public-companies.aspLargest companies …

How would you describe Carnegie & Rockefeller?

Rich, powerful, successful

What is the cartoonist’s message?

What will be the impacts of monopolies?

Monopolies will make LOTS of money & become very powerful

Smaller companies forced out Price controlled by one company

bad for consumers?? Workers cannot leave and go somewhere else

One company controls wages & working conditions How will these monopolies keep costs down???

Some will be very rich, while some will be very poor Income gap widens (top 2% own 30% country’s wealth; top 10% own

75% of countries wealth) Concept of Social Darwinism to justify this!

Some are superior to others – the superior should succeed Wealth, power & corruption go hand and hand

Forgotten presidents, but remembered businessmen! Sherman Anti-Trust Act 1890

Robber Barrons or Captains of Industry?

Did they steal from the people and their workers top get rich, i.e., “Robbers” or were they just super successful and should be applauded for being successful?

What will the workers do to protect themselves?

Form UNIONS an association of workers formed to protect and

further the rights of its workers

Existed in America pre-Gilded Age BUT craft specific and local

Now national, skilled & unskilled, different crafts combine

There is power in numbers, right?What tactics can unions use to

protect/further the rights of their members?

What impact did monopolies have on workers?

Were unions able to stand up to big business?What obstacles did unions face?Who plays a role in how workers, strikers and

business leaders portrayed? Why does this matter?

Were they Robber Barons??

Who else is to blame???