America in the Late 19th CenturyThe Rise of Big Business

(Gilded Age)

Outline

I. Goals and ObjectivesII. TermsIII. Rural United States 1800sIV. The Foundation of Industrialization

A. Economic changesB. Roots in Technological Innovation

V. The Corporate RevolutionA. Entrepreneurs B. The Example of Standard Oil

VI. Economic Repercussions and Changes IV. Conclusions

Goals and Objectives

• Goals: • Student understand the of big business role in shaping the

economy and politics.

• Objectives: • Students will be able to identify, interpret, and reflect upon

information presented in the classroom lecture to fill out guided lecture notes.

• Students will be able to identify and verbalize the post-reconstruction big ideas surrounding the expansion of Industry, flood of immigrants, and the transformation of living conditions.

Terms

•Entrepreneurs•Titians of Industry

•Robber Barons •Holding Company

•Monopoly• Vertical Integration

• Horizontal Integration• Trusts

Rural United States 1800s

• Population Diversity and Distribution of living• In the early 1800s, the US’s population was approximately five million

• 4.5 million lived on family farms in rural United States • Only 7 cities had populations larger than approximately 10,000 people.

• New York: 60,500 people• Philadelphia: 41,000 people• Boston and Baltimore: 25,000 people

• Social Conditions• Life, for the bulk of the population, was the life of a farmer. • People worked in villages and small towns. In south most people lived on

large family owned plantations. • News was spread by travelers and goods were only sold in their local

area. • Education was poor and mostly reserved for the rich who could afford

private tutors or send children to schools and universities.

Decline of AgricultureMeasured by Rural/Urban Population 1870 and 1900

Guiding Questions

What major factor contributed to peoples migration to cities?

A. Access to the Great Lakes for european tradeB. New Job opportunities in factories C. Farming was going out of styleD. Cities offered

Looking at the maps from the previous page, Why were most of the emerging cities in the Northeast?

A. Near current trade routes, easier to transport goodsB. Access to Large bodies of waterC. Proximity to pre- existing cities (philadelphia, Boston, New York)D. Wealth of natural Resources

Technological Innovation

Lynn, MA Shoe Factory, 1895

Michigan Central Railroad, 1900

Railroads

Factories

The Corporate Revolution

Pre-Civil War: the Partnership and post: LLC

The Gilded Age1870-1900

Why did they call it the Guilded Age?

New Power Players: Entrepreneurs

Entrepreneurs!

Andrew Carnegie – US Steel

Gustavus Swift – Swift Meatpacking

J.P Morgan- Banking

Standard Oil

Robber Barons

Titians of Industry

John D. Rockefeller, 1885

Economic Repercussions and Changes

Andrew Carnegie and

Steel Manufacturing

The connection between Steel production and

Railroads

Trusts

Holding Companies

Monopoly

Guiding Questions

What is horizontal Integration?

What company did George M. Pullman found?

A. A strategy to take over the market for a product by buying similar companies that produces supplies used in your manufacturing.

B. A strategy to increase your market share and eliminate competition by taking over a similar company that produces alike products.

A. Standard Oil

B. Ford Motor Company

C. Credit Mobilier

D. Bessemer Process

Conclusions

On a Separa te Sheet o f paper respond to the fo l l ow ing p rompt :

Desc r ibe one pos i t i ve and one negat i ve impac t tha t the expans ion o f i ndus t ry had on the economy.

B e p r e p a r e d t o s h a r e y o u r a n s w e r ! ! !