Causes, course and consequences of the Second Industrial Revolution SS.912.A.3.2 - Examine the social, political, and economic causes, course, and consequences of the second Industrial Revolution that began in the late 19th century. Essential Question – How did big business weaken or eliminate competition and how did the government respond?

Bell Ringer (3 minutes) After the Civil War, one way business leaders tried to eliminate competition was by forming monopolies or trusts developing overseas markets increasing the prices of their products paying high wages to their workers Which of the following contributed to the immense industrial boom known as the Second Industrial Revolution? bankruptcy of farms, populist movement, loss of farming lands abundance of natural resources, government support of businesses, increase in urban population cheap city buildings, women’s movements, great migration new public education system, discovery of oil in Pennsylvania, formation of trusts

Causes, course and consequences of the Second Industrial Revolution 30 Rock Vertical Integration Look for the information that answers the following question: What is a positive effect of vertical integration? What is a negative effect of vertical integration? https://www.youtube.com/watch?v=SgNbW3PlfYg

Causes, course and consequences of the Second Industrial Revolution (I Do) Causes: natural resources, growing population, legacy of First Industrial Revolution, free enterprise system, role of government, stimulus of Civil War Course: spread of railroads new inventions emergence of new industries rise of big business and monopolies government regulation Consequences: nationwide market for goods

Causes, course and consequences of the Second Industrial Revolution (I Do) Big Business Consolidation In the year following the Civil War, the corporation, became more common. Successful entrepreneurs like Carnegie and Rockefeller drove many smaller competitors out of business and bought up their companies. In other cases, falling prices and “cutthroat competition” (lowering prices temporarily to drive competitors out of business) led rival companies to join together. The aim of all these forms of business consolidation was to eliminate competition and establish a monopoly – complete control over the production of a good or service.

Causes, course and consequences of the Second Industrial Revolution Why would a rise of big business and monopolies make it necessary for government to regulate the business industry?

Causes, course and consequences of the Second Industrial Revolution (We Do)

Causes, course and consequences of the Second Industrial Revolution (We Do) Read the handout titled, The Great Entrepreneurs of the Gilded Age. As you read, identify the steps big business took to weaken or eliminate competition and how government responded.

Bell Ringer Question After the Civil War, one way business leaders tried to eliminate competition was by forming monopolies or trusts developing overseas markets increasing the prices of their products paying high wages to their workers

Bell Ringer Question After the Civil War, one way business leaders tried to eliminate competition was by forming monopolies or trusts developing overseas markets increasing the prices of their products paying high wages to their workers

Bell Ringer Question Which of the following contributed to the immense industrial boom known as the Second Industrial Revolution? bankruptcy of farms, populist movement, loss of farming lands abundance of natural resources, government support of businesses, increase in urban population cheap city buildings, women’s movements, great migration new public education system, discovery of oil in Pennsylvania, formation of trusts

Bell Ringer Question Which of the following contributed to the immense industrial boom known as the Second Industrial Revolution? bankruptcy of farms, populist movement, loss of farming lands abundance of natural resources, government support of businesses, increase in urban population cheap city buildings, women’s movements, great migration new public education system, discovery of oil in Pennsylvania, formation of trusts

Causes, course and consequences of the Second Industrial Revolution (You Do) These steps are all performed by a single company. Which of the following best describes the diagram? horizontal integration vertical integration trust company holding company

Causes, course and consequences of the Second Industrial Revolution (You Do) Based on the cartoon, what conclusion can be reached about the United States in the early 1880s? Most American manufacturing was controlled by business monopolies. Some American cities felt workers were being oppressed by business monopolies. Government leaders were finally taking steps to curb the power of business monopolies. Business monopolies overcharged their customers but were essential to American economic growth.

Causes, course and consequences of the Second Industrial Revolution (You Do) Why were business leaders John D. Rockefeller, J. P. Morgan, and Andrew Carnegie primarily referred to as robber barons? they bought titles of nobility from foreign governments they were ruthless in dealing with competitors they stole money from state and local governments they gained all of their wealth by illegal means

Causes, course and consequences of the Second Industrial Revolution (You Do) Which economic concept is best illustrated by the cartoon? vertical integration horizontal integration monopoly anti-trust

Cite specific evidence to support your answer Causes, course and consequences of the Second Industrial Revolution (You Do) Essential Question: How did big business weaken or eliminate competition and how did the government respond? Cite specific evidence to support your answer