Robber Barons or Captains of Industry? 11.2.5 Discuss corporate mergers that produced trusts and cartels and the economic and political policies of industrial leaders.

Homework Read and take Cornell Notes on section 14.2 to prepare for an activity on Tuesday. Challenge Option – Come up with 8 cause and effect statements from the reading. Example: The South had fewer people  they lost the Civil War

3 New Vocabulary words… Mass Production – Used by Henry Ford to make cars more affordable. Monopoly: Oil and steel industries were both controlled by monopolies at the beginning of industrialization. Trust: a set of companies managed by a small group known as trustees, who can prevent companies in the trust from competing with each other. If all search engines were controlled by the same people. Corporation: Google, Netflix, Apple. Any company that sells stocks.

HOT ROC: Do billionaires have a responsibility to help the poor? Do millionaires? *HW Check Organizational Categories for your project. Project Reminder: Essay outline with a thesis statement for the project is due on Friday

Simulation T-shirt shops where will you shop?

Big Business and the Government Horizontal and Vertical Integration Textbook, page 171

Andrew Carnegie $75 Billion Don’t take notes on this section Andrew Carnegie came from Scotland with his parents in 1848. In 1861, at the age of 26, he started up the Freedom Iron Company, and used the new Bessemer process for making steel He formed all of his companies into the Carnegie Steel Company in 1899, which controlled raw materials, manufacturing, storage, and distribution for steel. Vertical Integration

John D. Rockefeller $192 Billion Don’t take notes on this section Born in 1839 His working life started as a bookkeeper He established one of the first oil refineries 1870—With partners, forms a business trust: Standard Oil At its peak, controls 90% of all oil companies Horizontal Integration

The Gilded Age…1870s-1900 Where was the most money made? Was this positive or negative for America? 1870 1900 Steel Production 77,000 tons 11 million tons Oil production 5 million barrels 63 million barrels Railroad track 53,000 miles 200,000 miles

What would Rockefeller say… Monopolies are good because we can produce goods at a lower cost to consumers! Now everyone can have cheap oil and gas. We use our wealth to benefit others through our charitable donations (philanthropy)

Big Business and the Government: POV Leave Business Alone Limit Business Laissez-faire Social Darwinism Sherman Anti-Trust Act 1911--Splits Rockefeller’s Standard Oil into 34 companies (A U.S. Court of Appeals found in 2001 that Microsoft violated the Sherman Act antitrust law.)

What would the Populists (poor farmers) say? Monopolies are bad because they control the whole industry and there is no competition over prices. We have to pay high prices to ship our wheat on the trains! And these companies pay low wages to their workers!

Draw a Below the Surface graphic from each point of view… 1. According to Rockefeller—monopolies are like… 2. According to the Populists—monopolies are like…

Who are the billionaires (Robber Barons) of today? Walton- founder of Wal-Mart Warren Buffett- CEO Berkshire Hathaway (holding company) and investor Ellison- Oracle

Forbes 2011 Rank Name Worth Age Source Country 1 Carlos Slim Helu & family $74 B 71 telecom Mexico 2 Bill Gates $56 B 55 Microsoft USA 3 Warren Buffett $50 B 81 Berkshire Hathaway 4 Bernard Arnault $41 B 62 LVMH France 5 Larry Ellison $39.5 B 67 Oracle 6 Lakshmi Mittal $31.1 B 61 Steel India 7 Amancio Ortega $31 B 75 Zara Spain 8 Eike Batista $30 B 54 mining, oil Brazil 9 Mukesh Ambani $27 B petrochemicals, oil & gas 10 Christy Walton & family $26.5 B 56 Walmart