Chapter 13 Key Terms History Alive! Pursuing American Ideals The Age of Innovation and Industry: The rise of corporations, heavy industry, mechanized farming and technological innovations transformed the American economy from an agrarian to an increasingly urban industrial society.
Chapter 13: Engagement Chinese Fortune Cookie! Homemade vs Industrialized
Capitalism/Capitalist Definition: An economic system in which factories, and other means of production are privately owned rather than government controlled.
Laissez-Faire Definition: The idea that the free market, through supply and demand, will regulate itself if government does not interfere.
Horizontal Integration Definition: A corporate expansion strategy. Involves joining together as many firms from the same industry as possible. John D. Rockefeller’s Standard Oil
Vertical Integration Definition: Corporate expansion strategy Control of each step in the production and distribution of a product. Acquiring raw materials to manufacturing, packaging, and shipping.
Time Warner Turner Network Television (TNT) Cartoon Network CNN Castle Rock Entertainment Turner Network Television (TNT) Cartoon Network Hanna - Barbera Cartoons CNN Warner Bros. Studios Court TV HBO Movies Movies Television CNN Radio Time Warner Radio Cable Providers Internet Publishing Road Runner Time Warner Cable Kablevision (53.75% - cable television in Hungary) AOL Instant Messenger Winamp Fortune Sunset Books Time Netscape MapQuest Sports Illustrated Amazon.com (partial) People Mag. http://cjrarchives.org/tools/owners/timewarner.asp
Mechanized Farming From the beginning of America until the IR, the U.S. was an agrarian country using farm animals to do the work.
With the onset of the IR, even farming became heavily mechanized.
Heavy Industry New innovations like the Bessemer process allowed the steel industry to explode!
America in the Gilded Age To cover with or as if with a thin layer of gold. To give an often deceptively attractive or improved appearance to
Captains of Industry How did the captains of industry create and maintain control of United States industry?
What is a Captain of Industry?! A business leader whose way of achieving personal fortune contributes positively to the country in some way. Providing Jobs This can be through: Increasing Production Philanthropy
What is a Philanthropist?! Someone who makes large charitable donations ($$) to improve the well-being of others. Schools/ Universities This is often to: Hospitals/ Medicine Libraries
What is a Robber Baron?! A business man who dominated their industry and made huge fortunes through unfair business practices. This was done by: Holding all of the power in their company Sometimes used illegal business practices Eliminating smaller/weaker businesses
Andrew Carnegie: Controlled the steel Industry Brought the Bessemer Process from England -Made it easy and cheap to make large amounts of steel by refining iron. -Steel production increased 500 times 1867-1900
Was a Philanthropist who gave money to libraries. Andrew Carnegie: Used vertical integration to be successful. Vertical Integration = Owning all aspects of production for a certain product. As a result the owner makes all the profit (money) Was a Philanthropist who gave money to libraries.
John D. Rockefeller Owned the Standard Oil Trust Had a reputation as a Robber Baron
John D. Rockefeller Tried to control all businesses in the oil industry Gave away more than $500 million during his lifetime
Cornelius Vanderbilt Built a huge railroad empire through ruthless business tactics, Had a reputation as a robber baron
Cornelius Vanderbilt Left $1 million to Vanderbilt University after his death. He is the 2nd wealthiest person in U.S. History