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Your Warm-up . . .
What do you see?
It depends on Your Perspective!
Young Old Lady Woman
Andrew CarnegieSteel
John D. RockefellerOil
Cornelius VanderbiltRailroads
J.P. MorganBanking
Philip ArmourMeatpacking
It’s the Same With Business Leaders of the Day!
John D. Rockefeller and the Standard Oil Company
Wealthy 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/Consolidation
Controlling 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
Andrew CarnegieSteel
John D. RockefellerOil
Cornelius VanderbiltRailroads
J.P. MorganBanking
Philip ArmourMeatpacking
It’s the Same With Business Leaders of the Day!
Robber Barons
Business 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.
“Robber Barons”
Captains of IndustryThe 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 societyCarnegie 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.
Monopoly vs. CartelMonopoly – 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 (OPEC)
Which Led to the Sherman Antitrust Act
Enacted in 1890Effort by Congress to end trusts
Ineffective due to lack of enforcement
More about it in future units
Business CycleThe growth and
contraction of a nation’s economy – New Problem in the
late 1800s
Industrial Revolution
Working Conditions
Growing Work Force
ImmigrantsFormer Farm FamiliesWomen and ChildrenDoes not include
African Americans
Survival Guide for Poor Families (aka, immigrants!)
Force children to leave school for work
Send children as young as age 6 to work
Ask for aid from a private charity (church, etc.) Government Welfare is non-existent at this time!
Workday Length
Typically 12 hours/day, 6 days/week
Division of Labor Changes Manufacturing
When someone completes one task as part of the job
Positive: MASS PRODUCTION – it increases business productivity Negative: workers no
longer take pride in work and removes creativity
Think About Making Shoes as an Example of This Concept!
He may never work on shoes!
