Becoming an Industrial Society ( ) NCSCOS 5.01 AP USH Unit 16 Michael Quiñones, NBCT

Macro Concepts Conflict-problem or issue that is controversial and can cause problems without compromise Change-the transformation of a person, place or thing. Innovation-improvement and advancement in the way something is done. Power-the authority of a government to carry out the law. Supply and Demand-The belief that the amount of an item and peoples desire for it will influence the price. Laissez Faire-the belief that the government should leave businesses alone. Social Darwinism-Belief that certain people are born superior than others. People are successful because they earned it and unsuccessful people did not. Monopoly-type of business that runs its competition out of business and takes over the entire industry. Vertical integration-a strategy used by business to control every aspect of production. Horizontal integration-another term for monopoly. Micro Concepts

Gilded Age Gilded Age Time period from when a small number of Americans became extremely wealthy due to their exploitation of Laissez Faire policies of the U.S. Government. Time period from when a small number of Americans became extremely wealthy due to their exploitation of Laissez Faire policies of the U.S. Government. Railroads, The Steel industry and Oil companies controlled their business sectors with complete control. Railroads, The Steel industry and Oil companies controlled their business sectors with complete control. Competition between businesses was limited and prices of goods were very high. Competition between businesses was limited and prices of goods were very high. There was a huge disparity [difference] between the rich and poor. There was a huge disparity [difference] between the rich and poor. The decadent Biltmore Estate in Asheville, NC

Captains of Industry These were business owners who were ruthless and did everything they could to be financially successful by controlling their types of business. They were called captains of industry as a result of their tactics. These were business owners who were ruthless and did everything they could to be financially successful by controlling their types of business. They were called captains of industry as a result of their tactics. These men became very wealthy and powerful because they controlled huge amounts of money. These men became very wealthy and powerful because they controlled huge amounts of money.

Robber Barons Robber barons were business owners who sometimes broke the law or twisted rules to their advantage in order to make huge amounts of money. They controlled the wealth of the United States by stealing money from citizens with exorbitant pricing. At the local level a leader of New York Citys Democratic Party, Tammany Hall, was led by the notorious William Boss Tweed.

John D. Rockefeller and Standard Oil Rockefeller built on the success of Drake and went into the oil business. Rockefeller built on the success of Drake and went into the oil business. Because of the invention of cars and the use of gasoline Rockefeller became very wealthy. Because of the invention of cars and the use of gasoline Rockefeller became very wealthy. Rockefeller used a business strategy called horizontal integration to consolidate other businesses by taking them over. Rockefeller used a business strategy called horizontal integration to consolidate other businesses by taking them over. He was then able to create a monopoly and charge whatever he wanted to. He was then able to create a monopoly and charge whatever he wanted to.

Andrew Carnegie, Bessemer Process and U.S. Steel Carnegie was a Scottish immigrant who was very poor when he arrived in the United States. He worked his way up to owner of U.S. Steel Corporation which later became a monopoly in the steel business. He was shown the Bessemer process by a chemist who demonstrated how to create high quality steel for military weapons. The Bessemer process enabled him to make super strong steel in a quick manner using oxidation [air blown through molten steel]. He also used a business strategy called vertical integration which combined every part of the steel business in order to make higher profits.

J.P. Morgan Railroad and banking tycoon who financed numerous businesses and formed banking trusts He cleverly acquired ownership in companies that were often considered unfair. He purchased U.S. Steel Corporation from Carnegie for $400 million He often forced companies to dissolve when profits were siphoned off [workers lost jobs]

Thomas Nasts cartoons A New York City cartoonist named Thomas Nast criticized the corruption and illegal activities of Tweed and other government officials. His cartoons were so effective because readers did not have to know how to read to understand what Nast was describing. Eventually the pressure applied by Nast led to Tweeds arrest, prosecution and imprisonment.

FRQs: Free Response Questions 1. How did the Gilded Age create conditions for abuse of working class people by the so-called Robber Barons? 2. How did Captain of Industry/Robber Barons use certain types of business tactics to their benefit at the expense of the American public? 3. Why was the cartoonist Thomas Nast able to end the rein of and destroy the career of the extremely powerful William Boss Tweed?

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