Henry Fords Model T Henry Fords Model T Assembly Line VideoAssembly Line Video

Assembly LineAssembly Line A production system with machines A production system with machines

and workers arranged so that each and workers arranged so that each person performs an assigned task person performs an assigned task OVER and OVER again.OVER and OVER again.

Mass ProductionMass Production Assembly line = Mass productionAssembly line = Mass production Mass Production – Manufactures can Mass Production – Manufactures can

make large quantities of a product make large quantities of a product quickly and cheaply.quickly and cheaply.

Larger profitsLarger profits

The Age of RailroadsThe Age of Railroads 1890=more than 200,000 miles of 1890=more than 200,000 miles of

tracktrack 1888=more than 2,000 railroad 1888=more than 2,000 railroad

workers die and 20,000 are injured.workers die and 20,000 are injured. Built by immigrants (Asians in the Built by immigrants (Asians in the

West and Irish in the East) also West and Irish in the East) also African-AmericansAfrican-Americans Earn very littleEarn very little

Joining the nationJoining the nation Railroads link the nation Railroads link the nation

togethertogether Travel and industry increasesTravel and industry increases Time zones are created to keep Time zones are created to keep

railroad schedules.railroad schedules.

Industry growsIndustry grows Railroads cause industry to growRailroads cause industry to grow George Pullman invents a sleeping George Pullman invents a sleeping

car known as a Pullman carcar known as a Pullman car

CorruptionCorruption Railroads were usually corruptRailroads were usually corrupt Charged high pricesCharged high prices Bribed government officials Bribed government officials Made millions through trickeryMade millions through trickery

Congress ActsCongress Acts Congress tries to combat corruptionCongress tries to combat corruption Congress passes the Interstate Congress passes the Interstate

Commerce Act to regulate tradeCommerce Act to regulate trade Not strong enough to control the Not strong enough to control the

railroadsrailroads

ENDEND

An Age of Big Business An Age of Big Business P.45 in packetP.45 in packet

Big Business EmergesBig Business Emerges Businesses consolidate into big Businesses consolidate into big

industries or ________________industries or ________________ These are run by businessmen These are run by businessmen

who become very wealthy and who become very wealthy and become known as become known as ___________________.___________________.

Big Business EmergesBig Business Emerges Businesses consolidate into big Businesses consolidate into big

industries or industries or corporationscorporations These are run by businessmen These are run by businessmen

who become very wealthy and who become very wealthy and become known as _____________.become known as _____________.

Big Business EmergesBig Business Emerges Businesses consolidate into big Businesses consolidate into big

industries or industries or corporationscorporations These are run by businessmen These are run by businessmen

who become very wealthy and who become very wealthy and become known as become known as robber baronsrobber barons..

Government practicesGovernment practices Government supported laissez-Government supported laissez-

faire economicsfaire economics ______________________________ Government does very little Government does very little

__________________ Result=very wealthy businesses and Result=very wealthy businesses and

lots of corruption and little competitionlots of corruption and little competition

Government practicesGovernment practices Government supported laissez-Government supported laissez-

faire economicsfaire economics Means hands offMeans hands off Government does very little Government does very little

__________________ Result=very wealthy businesses and Result=very wealthy businesses and

lots of corruption and little competitionlots of corruption and little competition

Government practicesGovernment practices Government supported laissez-Government supported laissez-

faire economicsfaire economics Means hands offMeans hands off Government does very little Government does very little

regulationregulation Result=very wealthy businesses and Result=very wealthy businesses and

lots of corruption and little competitionlots of corruption and little competition

Social DarwinismSocial Darwinism Idea that the best individuals will Idea that the best individuals will

succeedsucceed The survival of the _______The survival of the _______ Government should do very littleGovernment should do very little

Social DarwinismSocial Darwinism Idea that the best individuals will Idea that the best individuals will

succeedsucceed The survival of the The survival of the fittestfittest Government should do very littleGovernment should do very little

Robber Barons or Captains Robber Barons or Captains of Industry?of Industry?

Andrew CarnegieAndrew Carnegie Built a giant steel Built a giant steel

firmfirm Bought out Bought out

competition and competition and provides of raw provides of raw materials and materials and transportation of his transportation of his goodsgoods

Known as __________ Known as __________ consolidationconsolidation

Robber Barons or Captains Robber Barons or Captains of Industry?of Industry?

Andrew CarnegieAndrew Carnegie Built a giant steel Built a giant steel

firmfirm Bought out Bought out

competition and competition and provides of raw provides of raw materials and materials and transportation of his transportation of his goodsgoods

Known as Known as verticalvertical integrationintegration

Vertical consolidationVertical consolidation Buying out companies for ________ Buying out companies for ________

of the productive process from of the productive process from raw materials to marketing. raw materials to marketing.

Vertical IntegrationVertical Integration Buying out companies for Buying out companies for every every

stage stage of the productive process of the productive process from raw materials to marketing. from raw materials to marketing.

John D. RockefellerJohn D. Rockefeller Another robber baronAnother robber baron Controlled ___________Controlled ___________ Bought other oil Bought other oil

companiescompanies This is horizontal This is horizontal

consolidation=controlliconsolidation=controlling competition at ng competition at ___________________ process of a ___ process of a product.product.

John D. RockefellerJohn D. Rockefeller Another robber baronAnother robber baron Controlled Controlled Standard OilStandard Oil Bought other oil Bought other oil

companiescompanies This is horizontal This is horizontal

consolidation=controllinconsolidation=controlling competition at ________g competition at ___________ process of a product.___ process of a product.

John D. RockefellerJohn D. Rockefeller Another robber baronAnother robber baron Controlled Controlled Standard OilStandard Oil Bought other oil Bought other oil

companiescompanies This is horizontal This is horizontal

integration=controlling integration=controlling competition at competition at one one step in thestep in the process of a process of a product.product.

Horizontal IntegrationHorizontal IntegrationVe

rtica

l Int

egra

tion

Verti

cal I

nteg

ratio

n

Other robber baronsOther robber barons Cornelius Vanderbilt: _____Cornelius Vanderbilt: _____

____________________________ J. P. Morgan: __________J. P. Morgan: __________

____________________________

Robber barons did Robber barons did philanthropy work (gave philanthropy work (gave money to charities)money to charities)

Other robber baronsOther robber barons Cornelius Vanderbilt: Cornelius Vanderbilt: RR RR

monopolist monopolist J. P. Morgan: __________J. P. Morgan: __________

____________________________

Robber barons did Robber barons did philanthropy work (gave philanthropy work (gave money to charities)money to charities)

Other robber baronsOther robber barons Cornelius Vanderbilt: Cornelius Vanderbilt: RR RR

monopolist monopolist J. P. Morgan: J. P. Morgan: banking banking

monopolist monopolist

Robber barons did Robber barons did philanthropy work (gave philanthropy work (gave money to charities)money to charities)

Are you a philanthropist? Are you a philanthropist? Could you be?Could you be?

Monopolies and trustsMonopolies and trusts

Robber barons Robber barons created _________created _________ Where a firm Where a firm

controls _________controls ___________________________________________

Also created _____Also created _____ Companies agree Companies agree

to work togetherto work together

Monopolies and trustsMonopolies and trusts

Robber barons Robber barons created created monopoliesmonopolies Where a firm Where a firm

controls _________controls ___________________________________________

Also created _____Also created _____ Companies agree to Companies agree to

work togetherwork together

Monopolies and trustsMonopolies and trusts

Robber barons Robber barons created created monopoliesmonopolies Where a firm Where a firm

controls controls all the all the competitioncompetition

Also created _____Also created _____ Companies agree Companies agree

to work togetherto work together

Monopolies and trustsMonopolies and trusts

Robber barons Robber barons created created monopoliesmonopolies Where a firm Where a firm

controls controls all the all the competitioncompetition

Also created Also created truststrusts Companies agree to Companies agree to

work togetherwork together

Sherman Anti-trust ActSherman Anti-trust Act Congress passed the Sherman Congress passed the Sherman

anti-trust act to outlaw anti-trust act to outlaw ____________________________

______________________ Difficult toDifficult toenforceenforce

Sherman Anti-trust ActSherman Anti-trust Act Congress passed the Sherman Congress passed the Sherman

anti-trust act to outlaw anti-trust act to outlaw trusts trusts and monopoliesand monopolies Difficult toDifficult toenforceenforce

What’s wrong with this?What’s wrong with this? What’s wrong with having What’s wrong with having

monopolies and no competition?monopolies and no competition?

Lets Review VideoLets Review Video

EndEnd HW Complete page 1 in packet: HW Complete page 1 in packet:

Captains of Industry or Robber Captains of Industry or Robber Barons?Barons?