- Economic system in which supply and demand determine prices. Capitalism - Economic system in which supply and demand determine prices. Remember 9th grade?

Government should keep its hands off of businesses Laissez-Faire Government should keep its hands off of businesses

A person who takes a risk and starts a company. Entrepreneur A person who takes a risk and starts a company.

In the late 1800s and early 1900s several men created fortunes based on the Industrialization of America. Good … Right ???

Andrew Carnegie John D. Rockefeller

One business has complete control of a product or service Monopoly One business has complete control of a product or service

Remember this? What is the winning strategy?

Produced 1/4 of American steel Poor Scottish immigrant “Steel King” Andrew Carnegie Produced 1/4 of American steel Poor Scottish immigrant $25 million per year

Used Bessemer Process – allowed for large skyscrapers to be built

Guess where Carnegie ran his business….. Again – Industrialization – big cities!!!

One business controls all aspects of production Vertical Integration One business controls all aspects of production

Philanthropist Someone who makes charitable donations to benefit human welfare

Carnegie Mellon University

Carnegie Hall

Carnegie Library

John D. Rockefeller pioneer of the merger mov’t (Standard Oil Company) Merger Movement Merger: combining many competing firms into one

Trusts A group of separate companies that are placed under the control of a single board

All competing companies are merged into 1 area of business Horizontal Integration All competing companies are merged into 1 area of business

Rockefeller Institute for Medical Research

University of Chicago

Gilded: Anything that glitters on the surface but is rotten underneath Late 1800s Gilded Age Coined by Mark Twain Gilded: Anything that glitters on the surface but is rotten underneath

Robber Barons or Captains of Industry? Why was this called the Gilded Age? Robber Barons or Captains of Industry?

Much wealth was being created by a few but there was a lot of poverty & bad working conditions

English philosopher Herbert Spencer, said yes! Is this OK? English philosopher Herbert Spencer, said yes!

Application of Darwin’s theory of evolution to human society Social Darwinism Application of Darwin’s theory of evolution to human society

Progress occurs through competition in which the weak fall & the strong thrive