SEPTEMBER 18, 2015 Word of the Day: Social Darwinism: the theory that persons, groups, and races are subject to the same laws of natural selection as Charles Darwin had perceived in plants and animals in nature. Warm-Up: This picture shows Rockefeller (a Captain of Industry) holding the Supreme Court in his hand. What does this mean for small businesses and the worker?

AMERICA INDUSTRIALIZES Essential Question: Were the industrialists captains of industry or robber barons? AMERICA INDUSTRIALIZES THE INDUSTRIALISTS

What would be a benefit of the Free Enterprise System? Free Enterprise System: Individuals are free to produce and sell whatever they wish, they are also free to buy and use whatever they can afford. *Individuals enjoy the freedom of making their own economic decisions* What would be a benefit of the Free Enterprise System? Freedom to start any business you want What would be negative? May take a while for the market to correct itself

ANDREW CARNEGIE WHO WERE THE INDUSTRIALISTS? Andrew Carnegie- VIDEO SCOTTISH IMMIGRANT- STARTED OUT AS A TELEGRAPH OPERATOR(LED TO IMPORTANT BUSINESS CONTACTS) PITTSBURGH STEEL MILL – SOLD IRON AND STEEL TO RR COMPANIES PRACTICED VERTICAL INTEGRATION- FROM THE NATURAL RESOURCE TO THE FINISHED PRODUCT KNOWN FOR PHILANTHROPY IN LATER LIFE – GOSPEL OF WEALTH: IMPORTANCE OF OPPORTUNITY OVER CHARITY

WHO WERE THE INDUSTRIALISTS? Rockefeller VIDEO JOHN D. ROCKEFELLER FOUNDED STANDARD OIL IN 1870, QUICKLY CONTROLLED 90% OF THE OIL SUPPLY IN U.S. BY AGE 33 (STARTED WITH 1 SMALL STORE AT AGE 29 LATER FORCED BY THE GOV’T TO DISSOLVE ST. OIL THESE COMPANIES STILL AROUND TODAY... GAVE AWAY MILLIONS OF DOLLARS TO CHARITY

CORNELIUS VANDERBILT JP MORGAN WHO WERE THE INDUSTRIALISTS? STEAMBOAT INDUSTRY STARTED ON HIS FATHER’S FERRY BORROWED $100 TO START HIS OWN LATER CONTROLLED RAILROADS JP MORGAN FORMED GENERAL ELECTRIC HOW MANY GE APPLIANCES IN YOUR HOME? MAJOR FINANCIER OF THE TIMES CHASE BANK  

Ms. Hoelscher’s Tortilla Company SO….. HOW DID THEY BECOME CAPTAINS OF INDUSTRY? FACTORS OF SUCCESS Ms. Hoelscher’s Tortilla Company Business Tactics Limit competition – trusts and monopolies Grow larger and more powerful - integration

Social Darwinism SO….. HOW DID THEY BECOME CAPTAINS OF INDUSTRY? FACTORS OF SUCCESS Social Darwinism Survival of the Fittest The theory was used from the late 19th century to support laissez-faire capitalism Don’t share the secret of your success, or it will no longer be your success.

Pro-Business Climate in Government SO….. HOW DID THEY BECOME CAPTAINS OF INDUSTRY? “Hands Off” FACTORS OF SUCCESS Pro-Business Climate in Government Government officials favor laissez-faire policies High tariffs – protect U.S.-made goods/ higher prices for consumers Bribery of government officials

During the Gilded Age, there was a notable increased in government support of big business Turn and Talk…. Large corporations and trusts have led to the failure of many smaller businesses. Are these new, larger companies better for Americans? Why or why not?

LET’S LOOK AT SOME DATA! Why do we look at the data? To figure out the story behind it. This is how history is discovered!

PROS CONS Hire more workers Produce goods in large quantities More efficient means lower prices Hire more workers Produce goods in large quantities Research and invention CONS Unfair competitive advantage against smaller businesses Can exploit workers Less concerned where they do business – pollution Unfair influence over gov’t policies

Interstate Commerce Act (1887) Sherman Anti-Trust Act (1890) Laws Against Anti-Competitive Practices Interstate Commerce Act (1887) Sherman Anti-Trust Act (1890) Prohibits unfair practices by railroads, such as charging higher rates for shorter routes **First time that congress stepped into regulate business in American The purpose was to stop monopolies engaging in unfair practices that prevented fair competition. **Marks a significant change in the attitude of Congress toward the abuses of big business. Now draw a picture to help you remember each new act

The Sherman Anti-Trust Act, Section 1: “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the states is declared to be illegal. Every person who shall engage in any combination or conspiracy declared to be illegal shall be deemed guilty of a felony [serious crime].” Do you think this legislation helped or hindered the American economy? Teddy Roosevelt felt that the Government should control or break up bad trusts.

Andrew Carnegie’s Gospel of Wealth “The problem of our age is the proper administration of wealth….the main consideration should be to help those who will help themselves; to provide the means by which those who desire to improve may do so; Neither the individual or the race is improved by charity.” According to Carnegie, what should the wealthy do with their money?  

TURN TO YOUR NEIGHBOR AND TELL THEM ONE THING YOU WILL TAKE AWAY FROM TODAY’S LESSON