Captains of Industry or Robber Barons? American History 1.

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Captains of Industryor

Robber Barons?American History

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Rise of Big Business—late 1800’s

Entrepreneur

Capitalism

Laissez-faire

Social Darwinism

Risk-takers who begin new ventures

Economic system in which most businesses are privately owned

“leave alone”; little or no gov’t interference

*Based on theory of natural selection*stronger people/business/nations will

survive & weaker ones will fail

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Business Tycoons John D. Rockefeller

Standard Oil (refinery)

Implemented vertical integration & horizontal integration

By 1875—refined ½ of US oil

Andrew Carnegie

Carnegie Steel Company

By 1899—dominated US steel industry

Sold 1901 to JP Morgan

John Piermont Morgan

Private banking

Financed many industrial consolidations

Cornelius Vanderbilt

Began in shipping

Invested in railroads during Civil War

Controlled most railroads in eastern US

George Pullman

Designed & built railroad sleeper cars

1881—built Pullman (company town outside Chicago)

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Captain of Industry OR Robber Baron?

By 1890 —about 10% of the US population held 70% of nation’s wealth!

Captain of Industry

• Extremely successful entrepreneur who dedicates part of his/her wealth to charitable pursuits

Robber Baron

• Person who made enormous amounts of money in business

• Insulting term that implied unfair business practices & little sensitivity to common worker

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Captain of Industry OR Robber Baron?

John D. Rockefeller

Andrew Carnegie

John. P. Morgan

Cornelius Vanderbilt

George Pullman

Which one applies?