Industrial Revolution Rise to Big Business Laissez Faire means “let the people do as they choose”. This theory calls for no government intervention in the economy. Most business owners wanted to be left alone from government regulations. ~Owners believed that the economy would prosper without government regulations which would reduce individuals’ prosperity.

“Nature’s cure for social/political disease is better than man’s” “Social Darwinism”= Charles Darwin’s theory of evolution (survival of the fittest) applied to people. The “fittest” people, businesses, or nations should and would rise to the positions of wealth and power. The “unfit” would fail. Helping the poor and less capable actually slowed social progress. It gave the owners an excuse to gain wealth/power with no regard for others. “Nature’s cure for social/political disease is better than man’s”

THE GILDED AGE Author Mark Twain used the phrase The Gilded Age, teasing America society during the late 1800s. The name refers to the process of gilding an object with a superficial layer of gold and is meant to make fun of ostentatious display while playing on the term "golden age." The Gilded Age is most famous for the creation of a modern industrial economy.

What is a corporation? A company that sells shares of ownership called stock to investors in order to raise money.

What is a monopoly and how would it negatively affect the consumer (people buying goods)? Exclusive economic control over an industry. With little or no competition, a company with a monopoly has almost complete control over the price and quality of a product.

What is a trust and how can it become illegal? An arrangement grouping several companies under a single board of directors to eliminate competition and to regulate production. It can become illegal if the trust gains exclusive control of an industry. =

Captain of Industry vs. Robber Baron Some people called these business owners “Captains of Industry”, because they used creative ways to make their money. They were role models and heroes to the working class because they went from “Rags to Riches”. However, other people called them “Robber Barons” for the unethical ways the business owners made their millions of dollars and used the workers. Starting with (from left to right) John D. Rockefeller, Andrew Carnegie, Cornelius Vanderbilt, and J.P. Morgan

~He could lower production costs and increase profits. Andrew Carnegie Andrew Carnegie made his money in the steel industry by buying supplies in bulk and producing goods in large quantities. ~He could lower production costs and increase profits. He used “vertical integration” = he acquired companies that provided the materials and services his enterprise depended on. “the man who dies rich, dies disgraced”.

“Vertical Integration” Carnegie bought: Iron Low prices Coal mines Low prices Steamship lines Low prices Railroads Low prices STEEL Produced and sold at a low price Low prices drive out competition

John Rockefeller John Rockefeller founded the Standard Oil Company. He acquired barrel factories, oil fields, oil-storage facilities, pipelines, and railroad tanker cars. By owning companies that contributed to each stage of oil refining, he was able to sell his oil cheaper than his competitors (vertical integration).

Rockefeller used “horizontal integration” which is one company’s control of other companies producing the same product. Rockefeller made deals with suppliers and transporters to receive cheaper supplies and freight rates. He made the first trust.

Cornelius Vanderbilt Vanderbilt pioneered the railroad industry by buying the New York Central Railroad in 1869. He controlled lines between Chicago, New York, Cleveland, and Toledo. He took advantage of the demand for rail transportation. In 1877, he controlled more than 4500 miles of track and was worth about $100 million.

The Labor Movement Workers in the factories were paid by “piecework” or they got a set rate for each article they made. Wages of men low. Women and children made less than men. Usually, one to two dollars a week.

Poverty and poor working conditions contributed to the workers suffering from tuberculosis and other diseases. 4. One major problem was a lack of a union. But owners would hire other workers to replace the strikers or shut down the factory completely leaving the strikers unemployed. This is called a lockout. The government favored the owners, not the workers.

Poor Working and Living Conditions “ Sweatshops ” was the name for factories because they were crowded and had poor ventilation. Accidents were considered the workers’ fault unless they could prove otherwise. 3. Greater than the danger of disease or injury was unemployment.

4. Cities developed greatly with paved streets, street lights, sewage system , “els “ or elevated railway, and fire and police departments. 5. The workers lived in the “ slums ” or run-down neighborhoods. Poorly ventilated apartments called tenements gave shelter to the workers and their families.

Mass Marketing Advertising, packaging, and logos helped to promote companies’ products. Montgomery Ward and Sears were the first mail-order companies. ~They were the first to let costumers use a catalog to order products. 3.John Wanamaker created the first department store 4.Macy and Marshall Field bought products in bulk and could offer lower prices to consumers. 5.Frank Woolworth created the “chain” store.

Inventions Frank and Charles Duryea made the first practical motorcar. Isaac Singer made the first sewing machine. The first airplane took flight because of Orville and Wilbur Wright. Christopher Sholes made the first typewriter. A patent guarantees an inventor’s right to make, use, or sell an invention.