Robber Barons Robber Baron – A business owner/executive who acquired wealth through ethically questionable tactics Captain of Industry – the head of company and industry Monopoly – company that dominates one industry

Political Cartoon #1 The trusts are depicted as Kings and Nobles wielding swords of legislation The rich are large and fat and tower over the poor. This suggests that they had lots of power

Robber Barons or Captains of Industry? Robber barons lead to people having a negative view of big business They were cruel and ruthless They would stop at nothing to achieve great wealth

Robber Barons or Captains of Industry? Some viewed these men as ingenious and industrial leaders They transformed the American economy They were praised for their charity

Scottish immigrant Founded Carnegie Steel Company Philanthropist who gave away millions of $$$ His steel company used the BESSEMER process

Philanthropist A person who seeks to promote the welfare of others by donating large sums of money to a charity

Vertical Integration An arrangement in which the supply chain of a company is owned by that company.

Horizontal Integration The merger of companies at the same stage of production in the same or different industries

Political Cartoon #2 The workman is burned at the stake that is labeled Monopoly The wood that breaths fire on the workmen depicts different businessmen and industries The workman is at the mercy of both Monopolies and businessmen

Political Cartoon #3 JP Morgan is much bigger than Uncle Sam. This makes it look like he has lots of power and influence over the government

Political Cartoon #4 The large man in Rockefeller He is holding the white house in his hand This suggests that he holds the government in the palm of his hand. This means he has a lot of power over them

Social Darwinism

Social Darwinism Free competition in the economy, like natural selection, would ensure survival of the fittest Society should do as little as possible to interfere with people’s pursuit of success

The government Response 1890 Sherman Antitrust Act – in response to social Darwinism Outlawed any combination of companies that restrained interstate trade Was not effective against trusts Pro business courts and politicians DID NOT REALLY ENFORCE LAWS

Graduated income tax People pay increasing amounts based upon how much they earn 16th amendment – “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”