Define the following key terms. Use your book Social Darwinism Big Burning Q of the Day Define the following key terms. Use your book Social Darwinism Sherman Antitrust Act Horizontal Integration Vertical Integration `

The Growth of Big Business Chapter 5 Section 3

Powerful Industrialists Robber Barons Bribed officials Paid low wages Dangerous conditions Ruin the competition Captains of Industry Positive service Increase supply Factories Productivity Expand Markets Found & Fund the arts & education                                       who established large businesses in the late 1800’s

Andrew Carnegie Born in Scotland 1835 Immigrate 1848 Married & 1 daughter Moved up the ranks in steel industry Civil War - telegraph Carnegie Steel Company Bessemer Steel Mill Mines, furnaces, mills, shipping & rail lines. Vertical consolidation “Make as much $$ as you want, then give it away.” Age 30 making $50,000 yr. Cut prices until he drove competitors out of the market. By the time of his death in 1919 he had given away over $350 million to the arts & education.

Pennsylvania was the steel capital of the world

Cause & Effect: growth of Big Business CAUSES Railroad boom lowers the cost of shipping New inventions make businesses more efficient Nation has rich supply of natural resources Small firms merge into GIANT corporations EFFECTS Steel & oil become giant industries Monopolies, cartels, & trusts dominate major industries Factory workers face harsh working & living conditions. Labor Unions grow.

Social Darwinism Survival of the fittest. Society should not interfere with the one’s drive to succeed. The “FIT” will succeed & the “UNFIT” will be weeded out.                      

The Competitive Edge Monopoly – drive competitors out of business & raise prices Cartel – agree to limit the supply of products & keep prices high                                                                               

John D Rockefeller 1839 – 1937 Sherman Antitrust Act Rich from grain & meat during Civil War Standard Oil Trust Companies merged. Horizontal Integration Sherman Antitrust Act Outlawed combination of companies that restrained interstate trade. As a youth, Rockefeller allegedly said that his two great ambitions were to make $100,000 and to live 100 years. He died on May 23, 1937, 26 months shy of his 100th birthday, Standard Oil made him richer.