Evaluate the influence of immigration and rapid industrialization on urban life Week 5 Day 2

Macro Concepts Conflict-problem or issue that is controversial and can cause problems without compromise Change-the transformation of a person, place or thing. Innovation-improvement and advancement in the way something is done. Power-the authority of a government to carry out the law. Supply and Demand-The belief that the amount of an item and people’s desire for it will influence the price. Laissez Faire-the belief that the government should leave businesses alone. Social Darwinism-Belief that certain people are born superior than others. People are successful because they earned it and unsuccessful people did not. Monopoly-type of business that runs its competition out of business and takes over the entire industry. Vertical integration-a strategy used by business to control every aspect of production. Horizontal integration-another term for monopoly. Micro Concepts

Gilded Age Time period from when a small number of Americans became extremely wealthy due to few regulations by the U.S. Government. Time period from when a small number of Americans became extremely wealthy due to few regulations by the U.S. Government. Railroads, The Steel industry and Oil companies controlled their business sectors with complete control. Railroads, The Steel industry and Oil companies controlled their business sectors with complete control. Competition between businesses was limited and prices of goods were very high. Competition between businesses was limited and prices of goods were very high. There was a huge difference between the rich and poor. There was a huge difference between the rich and poor.

Captains of Industry  These were business owners who were ruthless and did everything they could to be financially successful by controlling their type of business were called captains of industry.  These men became very wealthy and powerful because they controlled huge amounts of money.

Robber Barons Robber barons were business owners who sometimes broke the law or twisted rules to their advantage in order to make huge amounts of money. They controlled the wealth of the United States by “stealing” money from citizens.

Edwin Drake Drake was the first American to successfully drill for oil in the United States. Drake was the first American to successfully drill for oil in the United States. He discovered oil in Pennsylvania and refined it into kerosene. He discovered oil in Pennsylvania and refined it into kerosene. Kerosene was used for lamp fuel. Kerosene was used for lamp fuel. Because of his discovery other people drilled for oil and eventually became very wealthy. Because of his discovery other people drilled for oil and eventually became very wealthy.

John D. Rockefeller and Standard Oil ► Rockefeller built on the success of Drake and went into the oil business. ► Because of the invention of cars and the use of gasoline Rockefeller became very wealthy. ► Rockefeller used a business strategy called horizontal integration to consolidate other businesses by taking them over. ► He was then able to create a monopoly and charge whatever he wanted to.

Andrew Carnegie, Bessemer Process and U.S. Steel Carnegie was a Scottish immigrant who was very poor when he arrived in the United States. He worked his way up to owner of U.S. Steel Corporation. Which became a monopoly in the steel business. He was shown the Bessemer process by a chemist. The Bessemer process enabled him to make super strong steel in a quick manner. He also used a business strategy called vertical integration which combined every part of the steel business in order to make higher profits.

J.P. Morgan Railroad and banking tycoon who financed numerous businesses and formed trusts He cleverly acquired ownership in companies that were often considered unfair. He purchased U.S. Steel Corporation from Carnegie for $400 million He forced companies to dissolve when profits were siphoned off [workers lost jobs]

Vanderbilt Family The Vanderbilt family of New York dominated the railroad business. The Vanderbilt family of New York dominated the railroad business. The ruthless Vanderbilt family was well known for high fees for shipping freight. The ruthless Vanderbilt family was well known for high fees for shipping freight. They were also well known for bribing members of the U.S. government in order to get laws passed that would favor their business. They were also well known for bribing members of the U.S. government in order to get laws passed that would favor their business. The Interstate Commerce Act greatly reduced the power of the railroads. The Interstate Commerce Act greatly reduced the power of the railroads.

George Westinghouse ► Westinghouse was an inventor from New York. ► He made a fortune selling his railroad air brake. ► He later made millions organizing the Westinghouse Electric Company that used the principle of AC [alternative current]. ► Electricity became very popular in many American homes.

Herbert Spencer Herbert Spencer Some people believed the reason people were rich was because they were smarter. Some people believed the reason people were rich was because they were smarter. Nature favored them like Darwin thought it favored stronger creatures. Nature favored them like Darwin thought it favored stronger creatures. Poor people deserved their poverty because they were inferior. Poor people deserved their poverty because they were inferior. This concept was called Social Darwinism. This concept was called Social Darwinism.

Horatio Alger Horatio Alger wrote a series of inspirational novels telling various rags to riches tales. Horatio Alger wrote a series of inspirational novels telling various rags to riches tales. The stories focused on how kids from impoverished beginnings were able to pull themselves by their bootstraps. The stories focused on how kids from impoverished beginnings were able to pull themselves by their bootstraps. Very few of these stories were real but they offered hope. Very few of these stories were real but they offered hope.

The Gospel of Wealth  Not all wealthy business owners were bad!  Andrew Carnegie, a robber baron, gave away almost all of his money.  He believed dying wealthy was a type of crime.  His financial gifts funded public libraries and museums across America.  Therefore, the rich had a responsibility to do good with their money through philanthropy.

Which person or idea was the most clever and terrible? Which person or idea was the most clever and terrible?  Write a letter to the U.S. Government complaining about one of the robber barons [what do you want to be done?]  Write a letter to the person [robber baron/captain of industry] complementing about what he was able to accomplish?

Image sources quarter_length_portrait,_seated,_facing_slightly_left,_1913-crop.jpg quarter_length_portrait,_seated,_facing_slightly_left,_1913-crop.jpg