Your Warm-up... What do you see?. It depends on Your Perspective! Young Old Lady Woman.

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!