Big Business Emerges

6, sec. 3

John D. Rockefeller

Andrew Carnegie

Steel Magnate

J. P. Morgan

Carnegie

Poor Scottish immigrant Made fortune in Steel Hired talented assistants Worked efficiently Vertical Integration 1901 - owned 80% of steel industry

Social Darwinism

Economic theory which stated that the strongest businesses and individuals will survive.

Don’t regulate business Poor were lazy Rich were more intelligent

Rockefeller

Gained control of Oil Industry Cheap, paid employees low wages Given the name Robber Barron

J.P. Morgan

Created Holding companies - bought stock of other companies

Bought Carnegie’s U.S. Steel - 500 million Created Monopolies

Charities

Rockefeller gave away $500 million in his lieftime

Carnegie - $325 million “The Man Who Dies Rich Dies Disgraced.”

$3.5 billion in today’s money Carnegie - “Gospel of Wealth”

Sherman Anti-Trust Act

Outlawed trusts but failed Businessman got richer and richer and

workers had fewer rights.