Robber Barons vs. Captains of Industry -Pros and Cons of Industrialists -Treatment of workers -Antitrust Movement

Opposing View Points - copy Captains of Industry Created Jobs Increased production Provided cheap products and new technology Gave money back to the community (philanthropy) Assisted to the growth of the American economy and influence in world “Rags to Riches” stories inspired and modeled the American Dream Robber Barons Exploited workers while amassing fortunes Corrupted the government and large buyers by offering discounts Greedy, monopolies gouged consumers Destroyed hopes for the “American Dream” for many

Justifications for Industrialists’ Extreme Wealth - copy Gospel of Wealth Andrew Carnegie God gave wealth to the most capable people It is the duty of the wealthy to give money to help the poor Carnegie gave millions of dollars away to establish libraries, colleges, and museums Laissez faire capitalism – gov’t should leave business alone Social Darwinism Herbert Spencer Based on Charles Darwin’s theory of evolution Those who are rich are more fit, than those who are poor Attempted to use science to explain social classes Horatio Alger- wrote popular fictional books in which the protagonist poor boys became wealthy through their honesty and hard work.  Puritan Work Ethic.

John Rockefeller and Standard Oil Trust To monopolize the oil industry he forms the Standard Oil Trust A trust is an organization of businesses designed to operate like a monopoly His corporation Standard Oil owned about 88% of the oil industry in the US in 1890

John Rockefeller and Standard Oil Made deals with the railroads to charge competitors more Lowers prices to force other companies out of business-then raised prices Low pay for workers Sabotaged competitors Paid government officials in the Senate Recognized the potential of the oil industry Very hard worker Spent all profits from the company to improve production Philanthropy- gave over $500 million to charities

Other Famous Trusts Andrew Carnegie- US Steel J. P. Morgan- Banking, Railroads, and Insurance Companies Friedrich Weyerhaeuser- Lumber

Working Conditions - copy Laborers were immigrants, blacks, women, and children 10-12 hour days, six days a week Accidents were frequent, deaths occurred Low wages

Anti-Trust Movement - copy The public began to dislike trusts Prices were high on important products Trusts were responsible for a corrupt government Although Congressmen liked trusts they needed to please the public Passed the Sherman Antitrust Act Made it illegal to form a trust or monopoly Act was not effective because the act did not clearly define a trust

Exit Pass -Evaluate if Industrialists should be viewed as captains of industry or as robber barons. -Use details from your notes and your reading to support your answer.