The Growth of Big Business Chapter 13 Section 2

Objective: Evaluate the wealth created through the growth of Big Business against the methods and means used by business owners to gain success

Robber Barons or Captains of Industry? Robber Barons  Drain Natural ___________  Corrupt ___________ officials  Ruin ___________  Pay meager ______  _____________ and _________ work environments

Robber Barons or Captains of Industry? Captains of Industry  increased the ________ of factory made goods  Increased ___________  Expanded __________  Created jobs  Raised the standard of ________  ______________

Robber Barons or Captains of Industry? So Barons, Captains or both?

John D. Rockefeller _______ ___ Company Donated $500 million to charity In 2007, that would be around $10,615,034,080.50

Andrew Carnegie “_____ __ _____” –Make as much ______ as you can, as long as you give it away _____ of his fortune went toward education –$350 million by his death In 2007, that would be around $4,162,173,341.27

Social Darwinism _______ Selection –“The ___” would become _____ –Gov’t shouldn’t interfere with ________

Business on a Larger Scale ____ _______ = more money, more workers and more products Need for new ________ tactics

Business on a Larger Scale Larger Pools of _______ Higher start up costs prevented small business Wider _________ Span New innovations expanded markets

Business on a Larger Scale Revised Role of ________ Too big for one person  professional _________ New Methods of ___________ Complex accounting, written rules, specialized departments

Gaining a Competitive Edge New Market ________ –Oligopoly –Monopoly –_______ ________ structures, so new methods were created

Carnegie Steel Company Vertical __________ –Controlling every step of a product’s ____________ Andrew Carnegie was making $50,000 a year when he was 30…in 2006, that would come out to around $622,474.41

The Standard Oil Trust Huge Size brought __________ advantages –Under price __________ –Special ______ for RR use Rockefeller’s Expansion –Control of ___________

Horizontal Consolidation Standard Oil Company Oil Company A Oil Company B Oil Company C

Standard Oil Trust Rockefeller blocked from “_____ ____” competition –New Plan—new form of __________ Board of _________ “Trust”

The Government Response The American people feared _______ Gov’t did little to ____ them –Big Business… Contributed to America’s growing _________ Great success stories Political contributions

The Government Response –Sherman Anti-Trust Act Outlawed ___________ of companies that restrained interstate trade or commerce __________  vague wording Worked against itself  blocked _______ _______

In Review: Why were American industrialists of the late 1800s called both “robber barons” and “captains of industry”? How did social Darwinism affect American’s view on big business? In what ways did big business differ from smaller businesses? How did industrialists gain a competitive edge over their rivals?