Define Gilded The Gilded Age = time between the Civil War and WWI; lots of wealth in in the US, but lots of corruption & mistreatment of workers & immigrants Millionaires Industrial Growth Poor Working Conditions Child Labor Low Wages Unsanitary Cities Corruption Safety in the workplace Lack of Social Mobility Technology $$$$$$$$$$ American Prosperity

The Rise of Big Business “Survival of the Fittest” http://industrialrevolution-block4.weebly.com/consequences-on-growth-of-big-business.html

Technology and Industrial Growth U.S. encourages industrial growth Civil War = need more industry Immigrants = more workers Gov’t tariffs = imported goods too expensive! Laissez faire: do what you want!

Innovation Drives the Nation Thomas Edison: CREATIVE GENIUS! Lightbulb: affordable lighting for homes, extended the work day Phonograph: early record player, able to record sound Motion Pictures: moving pictures, evolve into entertainment https://www.youtube.com/watch?v=2wnOpDWSbyw

Railroads is Chinese and Irish immigrants built railroads Travel is quicker = prices of goods go down = sell to market faster = need to produce more Mass production to provide more for growing population and dense city populations Higher cost of living City growth: Chicago, Pittsburg, Las Vegas, Atlanta Need for time zones to standardize arrivals / departures is

Capitalism: trade and industry are controlled by private owners for profit Laissez faire: gov’t keeps their “hands off” business

Railroads Cornelius Vanderbilt: known informally as "Commodore Vanderbilt” was an American business magnate and philanthropist who built his wealth in railroads and shipping “I don't care half so much about making money as I do about making my point, and coming out ahead.” Cornelius Vanderbilt http://www.history.com/topics/cornelius-vanderbilt

Atlanta, Ga., ca. 1864. A view on the Atlanta and West Point Railroad looking towards the railroad depot, roundhouse and machine shops in Atlanta, Georgia, shortly before their destruction by Sherman's troops during the Civil War.

Peachtree Street -- Atlanta, GA, ca. late 1800’s

Oil: John D. Rockefeller: Standard Oil Controlled 90% of oil industry Legacy - $900 million** Richest man in the US “Charity is injurious unless it helps the recipient to become independent of it.” John D. Rockefeller http://www.history.com/topics/john-d-rockefeller/videos

Gaining a Competitive Edge Horizontal Integration: acquire the companies of your competitors to become a monopoly

Gaining a Competitive Edge Vertical Integration: own all means of production from beginning to end

Trusts: separate companies controlled by a single board Monopoly: a trust that has exclusive control over an entire industry Captain of Industry: an innovative entrepreneur who positively influenced society Robber Baron: person who became wealthy by unethical means Example: U.S. Steel, one company board controls many different steel companies http://www.businessinsider.com/the-next-7-american-monopolies-2010-11#1-streaming-movies-future-rental-monopoly-opportunity-in-the-making-1 http://www.therichest.com/business/companies-business/six-enormous-monopolies-past-and-present/?view=all

Thielen OIL COMPANY ANOTHER OIL COMPANY BUZZ OIL COMPANY SHS OIL COMPANY OILY OIL COMPANY

“Laissez faire capitalism, or pure competition, is the end of competition itself. It is the natural goal of any business to make as much profit as it can and to eliminate its competition. When a corporation eliminates its competition it becomes what is known as a "monopoly."

Steel Legacy: $400 million Andrew Carnegie: US Steel “And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department.” Andrew Carnegie Steel Andrew Carnegie: US Steel Legacy: $400 million gave $350 million to charity Gospel of Wealth: book which advised people to make what they need  give the rest to the community Est free libraries – everyone = access to education http://www.history.com/topics/andrew-carnegie

Cultural Effects of Big Business: Changing American Society Better farming machinery = less farmers Out of work farmers head where? Work efficiency leads to leisure time activities Environmental concerns/dust storms: create National Park Service 1872 Wall Street(New York City), ca. 1883. Albumen print photograph. 

What does the government say about these robber barons? Interstate Commerce Commission oversee RR operations 1st regulation of US businesses Sherman Antitrust Act Outlaws monopolist trusts Wants to break up dominance of Standard Oil monopoly

Labor Unions form as a reaction to Big Business

What was life like in factories? Everyone worked!!! (men, women, children)  Child Labor Sweatshops = 12 hours a day, 6 days a week Company towns Owned by business and rented out to the workers; forced to buy goods from the company store… this sounds like what???

Factory Horrors!! Child Labor Triangle Shirt Waist Company Unsanitary food from the factories

Labor Unions = organizations formed to protect workers’ interests American Federation of Labor (AFL) Founded by Samuel Gompers Organized skilled laborers Want to: Increase wages Better hours Better conditions

Pullman Strike Background: Railroad car company Workers required to live in company town Cause: Wages cut without a decrease in the cost of living in the company town During: Shut down rail traffic Stops trade in Chicago

Pullman Strike Effect: Employers used the courts to limit the influence of unions Gov’t did not support any unions and interpreted laws against them Sherman Anti-trust Act said no monopolies because they interfere with trade Since the strike stopped trade in Chicago, Striking Unions were considered monopolies ** Sherman Anti-Trust Act = no strikes = no unions **

Workers were treated like the pieces of meat that they produced Workers were treated like the pieces of meat that they produced. This will lead to the demand for ….