Warm Up Vocab Industrialist Monopoly Robber Baron Subsidy A person who owns an industry that focuses on using machines, factories, mines, or railroads to produce goods. Monopoly The exclusive possession or control of the trade of a good or service. Robber Baron Nickname given to successful/highly wealthy industrialists who often gained their fortune using ruthless tactics. Subsidy Government money given to a producer(business) to keep costs of production low and therefore prices of the good they make low.

Topic 5B – The Robber Barons

Jay Gould Railroads 9th richest in US history Took over the Erie Railroad and the Union Pacific Caused financial panic and ruined other investors. “I can hire one-half of the working class to kill the other half.”

J.P. Morgan Banking, Electricity, Railroads Board member of 48 corporations. Used the government to keep out foreign competitors Controlled half of U.S. railways “A man generally has two reasons for doing things, one that sounds good and a real one.” Defective rifles story. Bought defective rifles for $3.50 and sold them to a Union general for $22. The guns would shoot off the thumbs of the soldiers using them. -One of the first homes to have electricity. --Founded General Electric ----Had rosacea and didn’t like to be photographed.

Leland Stanford Railroads Used his position as governor and senator to assist this Central Pacific Railroad Funneled CA state money into his company Hired Chinese workers at low wages Used them to threaten Irish immigrants with losing their jobs for complaining. “The employee is regarded by the employer merely in the light of his value as an operative.”

John Rockefeller Oil Controlled oil interests in the US Formed a monopoly Never lowered prices despite new technologies making it cheaper Could buy or easily put others out of business by withholding oil “God gave me my money. I believe the power to make money is a gift from God…”

Andrew Carnegie Steel Rags to riches Kept worker wages low Came to the U.S. poor, died one of the richest in history Kept worker wages low Broke steel and rail unions Hired managers that lowered wages despite record profits. Philantropist “I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution.” -Mention his charities

The Robber Barons Often used exploitative practices to gain massive amounts of wealth. Paid extremely low wages to workers. Created monopolies to crush competition. Took control of most of U.S. natural resources. Ruin acquired companies to make even more profits. Using government influence to maintain control, and profit even further.