JP MorganJ. D. RockefellerWilliam VanderbiltAndrew Carnegie Steve Jobs Sam Walton Larry Page & Sergey BrinBill Gates

Carnegie’s Innovations Young boy who stopped a catastrophe Taking tips from the British Creation of the Carnegie Steel Co. – Horizontal – Vertical integration

Carnegie, Social Darwinism, New Definitions of Success Hard work, shrewd investments, and innovative business practices Herbert Spencer takes Charles Darwin’s theory of biological evolution & applies to business Protestants see success as a sign of God’s favor, failure as a sign of laziness.

Fewer Control More Control of competition. – Leads to shut outs. – “Can’t beat ‘em, join ‘em” mentality. – Horizontal mergers lead to monopolies The Rise of JP Morgan and John D. Rockefeller – Holding companies – trusts

Rockefeller and the Robber Barons Standard Oil Domination – 90% of refining business – Low wages – Driving competitors out of town – Price gouging Philanthropists – Millions in donations – Univ. of Chicago – Cure for yellow fever – Carnegie Hall It will be a great mistake for the community to shoot the millionaires, for they are the bees that make the most honey, and contribute most to the hive even after they have gorged themselves full”- Carnegie

Sherman Anti-Trust Act Business Boom Bypasses the South Gov’t steps in – Illegal to form a trust if it results in a monopoly. – Impossible to enforce. Supreme Court threw out 7 of 8 cases on the subject. – Eventually gave up. North – Natural and urban resources South – Mainly agricultural, forests

The Rise of the Labor Unions & Early Labor Organizing Keep up with industrialist labors of different races, genders, and skill levels united to form their own unions. NLU – refused to admit blacks. CNLU. 8hr work day for workers NOKL – 8 hr work day. Equal pay for equal work by men/women

Long Hours and Danger Steel mills demand 7 day work week. Seamstresses worked 12hrs a day, 6 days a week Horrid working conditions 20% of boys, 10% of girls under the age of 15 held full time jobs. Sweatshops paid $0.27 for a 14hr day.

Labor Unions Split Craft Unions Who= Samuel Gompers What= American Federation of Labor. Skilled labor from various trades When= 1886 How = collective bargaining and strikes. Weekly wages rose from $17.50 to $24. Work week falls from hrs to 49hrs. Industrial Unions Who= Eugene V. Debs What= American Railway Union. Un/skilled workers in a specific union. When = 1894 How = gain membership thru successful striking. 150,000 members in 2 months. 90,000 in the other 4 railroad unions.

Socialism and the IWW Turning to Socialism – Economic/political system based of gov’t control of business and property and equal distribution of wealth Industrial Workers of the World had a goal of overthrowing the capitalist system Membership never topped 100k.

Strikes Turn Violent B&O RR 2 nd wage cut in 2months. Freight and passanger traffic stopped across country. President Hayes calls in Federal troops to end strike. B&O RR 2 nd wage cut in 2months. Freight and passanger traffic stopped across country. President Hayes calls in Federal troops to end strike. Protesting police brutality against strikers. Bomb thrown at police. 8 leaders at rally charged with inciting riots. 4 hanged, 1 suicide Public turns against labor movement Protesting police brutality against strikers. Bomb thrown at police. 8 leaders at rally charged with inciting riots. 4 hanged, 1 suicide Public turns against labor movement Great Strike of 1877 The Pullman Co. Strike Homestead Strike, Carnegie Steel Co. The Haymarket Square Affair, Chicago Planned wage cuts. Guards and scabs hired. Battle; 12 dead. PA National Guard called in. Eventually gave in. Planned wage cuts. Guards and scabs hired. Battle; 12 dead. PA National Guard called in. Eventually gave in. After depression of 1893, almost half of employees laid off or wages cut. Did not cut the cost of housing. Debs wants to bring in arbritration, Pullman refuses. Pres. Cleveland has to send in Nat’l Guard to end strike. After depression of 1893, almost half of employees laid off or wages cut. Did not cut the cost of housing. Debs wants to bring in arbritration, Pullman refuses. Pres. Cleveland has to send in Nat’l Guard to end strike.

Women Behind the Scenes Barred from unions but supported leaders Mary Harris Jones “Mother Jones” – Great Strike of 1877 – Organized UMW – Led 80 mill children to the home of Pres. Roosevelt Pauline Newman – 16yrs old organized ILGWU – “Uprising of 20,000” strike – Improvement of working conditions in factors – Triangle Shirtwaist Factory Fire finally gives women the needed attention.

Clashing btwn Business and Unions The more powerful the unions became the more employers came to fear them – No union meetings – Fired union members – Yellow dog contracts – Sherman Anti Trust act used against laborers Despite these pressures, union membership continued to grow. The AFL in 1904 had 1.7 million members