Industrial Growth Unit Essential Question What factors enabled the United States to develop into an industrial power? Essential Understanding The US was able to develop into an industrial power due to available resources, labor, migration and entrepreneurial decisions

Robber Barons or Captains of Industry

Corporation: a definition A body of persons granted a charter legally recognizing them as a separate entity having its own rights, priveledges, and liabilities distinct from those of its members

Corporation Diagram

Corporation: a brief history Developed after the Civil War Developed when the need for large factories exceeded a single person’s financial capabilities Allowed investors the opportunity to make money on investments without the need to do physical work

Corporation: Carnegie model Vertical consolidation means that all phases of production were controlled by one company MINES SHIPS RRs Carnegie MILLS Steel Co.

Corporation: Rockefeller model Horizontal consolidation means that one company brings many firms together in the same industry purchased by Rockefeller Standard Oil independent

Corporation: What is wrong? Vertical consolidation created a monopoly because competitors could not produce as cheap Horizontal consolidation created a monopoly because there were no competitors

Social Darwinism “Only the strong survive” Idea that society reflects nature “Only the strong survive” Rockefeller and Carnegie were simply stronger than competitors thus allowing their businesses to survive

Gilded Age Economics Robber Barons who eliminated competition or Captains of Industry whose leadership in business led to the emergence of the United States