warm-up 4/10 if you could be the owner of any type of company, what would it be? why?
TRANSCRIPT
Warm-Up 4/10
If you could be the owner of any type of company, what would it be? Why?
Lesson Question
Why might the rise of industry be good or bad for the United
States?
Vocabulary
Division of LaborMass Production
Vertical Integration/Consolidation
Horizontal Integration/Consolidation
PhilanthropyBusiness Cycle
Review
Business Leaders
Andrew CarnegieSteel
John D. RockefellerOil
Cornelius VanderbiltRailroads
J.P. MorganBanking
Philip ArmourMeatpacking
John D. Rockefeller and the Standard Oil CompanyWealthy 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
Horizontal Integration/Consolidation
When all of your competitors have been bought out
Think MONOPOLY
Standard Oil Company/John D. Rockefeller
Controlling the Market
Bob’s Pizza
Delaware
Pizza
Pizza PizzaHappy Time PizzaUsing 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
Andrew CarnegieScottish Immigrant
Captain of Industry for steel production in Pittsburgh
Used Bessemer Process to produce stronger steel
Utilized vertical integration or consolidation
Vertical Integration/ConsolidationControlling businesses related to various phases of production for a product
Own all elements of a business
Carnegie Steel/Andrew Carnegie
Controlling the Market
Bob’s Pizza
Using Vertical Integration, Bob could control the Pizza market in
town by controlling many
of the costs associated with
making his pizza!Bob’s Farm
Bob’s Cheese Factory
Bob’s Trucking Company
Robber BaronsBusiness leader who made a fortune by stealing from the public.
Drained natural resources, paid low wages to workers, required long hours of employees
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.
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.
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
Carnegie as a PhilanthropistA Philanthropist uses wealth to improve society
Carnegie funded the building of libraries, education facilities, and music/arts facilities
“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.
Sherman Antitrust ActEnacted in 1890Effort by Congress to end trusts
Ineffective due to lack of enforcement
More about it in future units
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
Music Time!
Closer
Look back at your notes. Would you consider men like John D.
Rockefeller and Andrew Carnegie to be robber barons, captains of industry, or both?
Why?