Journal #___ -___ What are some big businesses/corporations that exist in the United States today? What are some POSITIVE things you might hear about these businesses (from people or the news)? What are some NEGATIVE things you might hear about these businesses (from people or the news)? Why do you think BIG BUSINESSES (“chains”) are so numerous in the US?

1.6 – big business and monopolies Unit 1 – early reform, western politics, and the gilded age Section 6

Learning Targets & Key Words TSWBAT: Identify the major Captains of Industry of the early 1900s Outline the various methods used to eliminate competition and form monopolies Evaluate the effects of monopolies on American society historically and today EQ: How did the Captains of Industry shape the US economy? How did monopolies affect completion in the US market? Key Words: Big business Captain of industry Robber baron Monopoly Cartel Horizontal integration Vertical integration

“Big Business” - think-pair-share What does this phrase mean? When have you heard people use this phrase? What are some examples of big businesses that exist today? In what ways do people discuss big business? Positively? Negatively? Explain!

Gilded age big business tycoons Andrew Carnegie – steel Cornelius Vanderbilt – railroads John D. Rockefeller – oil J.P. Morgan – banking Rags to riches…

Carnegie: Before Birth place - Scotland

Carnegie: After Skibo Castle - Scotland 91st St NYC Mansion

John Rockefeller: Before Birth Place – Richford, NY

John Rockefeller: After “The Casements” - Ormond Beach, FL

Cornelius Vanderbilt Son William Henry had 4 sons Including Frederick William (Hyde Park Estate on the Hudson) and George Washington (Biltmore Estate in Asheville) Cornelius Vanderbilt

Cornelius Vanderbilt’s House “The Breakers” - Newport, R.I.

Hyde Park Estate - Hudson River Valley

Biltmore Estate – Asheville, NC

How did they “make it”? Why were their corporations so successful? What strategies did they use to make money? Were those strategies legal?

Strategies used by big businesses Monopoly Cartel Gaining complete control of a product or service A.k.a. “Trust” Consumers have no other choices Example: _____________________ __ Businesses making the same product work together They agree to limit production to keep prices high Example: _______________________ __

Horizontal Integration Strategies, continued Horizontal Integration Vertical Integration Buying out rival businesses to gain more control of an industry Horizontal because ALL businesses are in the same FIELD (think – fields are FLAT) Example: ________________________ __ Gaining control of the many different businesses that make up all phases of a product’s production Think of production steps as literal STAIRS (Stairs go up – vertical!) Example: ___________________________

Rockefeller used vertical integration to build his empire, Standard Oil Forests Barrel-Making Shops Tank Cars/Railroads Oil Wells/Pipelines Retail Outlets

Were they… Robber Barons or Captains of Industry? How did they “make it”? Were they… Robber Barons or Captains of Industry?

What is a “Robber Baron”? One who steals Baron A man of great power or influence in some field of activity What are some characteristics to look for?

What is a “Captain of Industry”? One who leads or supervises A person of importance or influence What are some characteristics to look for?

Robber Baron Captains of Industry Tycoons that bought out small businesses, formed monopolies & cartels, and swindled the poor Captains of Industry Big businesses provided jobs, strengthened the economy, improved technology, and donated money to universities, charities, etc. ***Andrew Carnegie’s “Gospel of Wealth” Philanthropy (charity)

Interstate Commerce Commission (1887) GOVERNMENT REGULATION OF MONOPOLIES Interstate Commerce Commission (1887) First organization to regulate the railroads Sherman Antitrust Act (1890) First law to monitor business practices and limit the power of Big Business

BIG BUSINESS PRIMARY SOURCE ANALYSIS

Big Business Primary Source Analysis EQ: How did Big Business affect American society and economic activity? We will get into groups You will work together to fill out the graphic organizer

“The Protectors of Our Industries” What stands out to you about this cartoon? What is going on? What message is the cartoonist trying to convey?

“Rockefeller’s Standard Oil Company” What stands out to you? What things does it appear Standard Oil is grasping? What message is the cartoonist trying to convey? “Rockefeller’s Standard Oil Company”

“Rockefeller’s Standard Oil Company” What stands out to you? What things does it appear Standard Oil is grasping? What message is the cartoonist trying to convey?

“The Bosses of the Senate” What stands out to you? What do the different men represent? What message is the cartoonist trying to convey?

“Social Darwinism” What argument is Rockefeller trying to make with his statement? What are the main arguments being made by the ‘survival of the fittest’ Social Darwinism philosophy? What are your thoughts?

Andrew Carnegie’s “Gospel of Wealth” What are some of the duties of the wealthy according to Carnegie? What do you find interesting about Carnegie’s statement?

Activity extension: Modern political cartoon Select a “big business” that exists today Create a political cartoon of your own to represent something negative about the company Cartoon must include: Picture Slogan or title Selection of a modern “big business”