Your Warm-up . . . Do you see an old woman or a young lady?

It Depends on Your Perspective! Young Old Lady Woman

Try Another One . . . Frontal View or Side Profile?

What’s Your Perspective? Man Playing A Young Saxophone Woman

It’s the Same With Business Leaders of the Day! Cornelius Vanderbilt Railroads John D. Rockefeller Oil Andrew Carnegie Steel Philip Armour Meatpacking J.P. Morgan Banking

Carnegie and Rockefeller What Are They? Robber Barons Captains of Industry

Robber Barons Business leaders who get rich off the public Drained natural resources Paid low wages, required long hours of workers

“Robber Barons”

Persuaded public officials to interpret laws in their favor. Drove their competitors to ruin.

Captains of Industry Business leaders who served their nation in a positive way. Increased the supply of goods, raised productivity and expanded markets.

Created jobs that allow many Americans to buy new goods and raise their standard of living. Also created museums, libraries, and universities, many of which still serve the public today. Carnegie Hall

Carnegie as a Philanthropist A Philanthropist uses wealth to improve society Carnegie funded the building of libraries, education facilities, and music/arts facilities

It’s the Same With Business Leaders of the Day! Cornelius Vanderbilt Railroads John D. Rockefeller Oil Andrew Carnegie Steel Philip Armour Meatpacking J.P. Morgan Banking

Different Leaders Organize in Different Ways! Horizontal Integration/Consolidation Or Vertical Integration/Consolidation They prosper due to lack of government involvement

John D. Rockefeller and the Standard Oil Company Wealthy man who saw the oil industry as a way to get richer Made illegal deals with railroads to transport oil cheaper – weakens refineries that he buys Utilized horizontal integration or consolidation

Horizontal Integration/Consolidation Think . . . MONOPOLY John D. Rockefeller and Standard Oil Company

Controlling the Market Bob’s Pizza Nino’s Pizza Pat’s Pizza Caruso’s Using Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops! Bob’s Pizza Bob’s Pizza Bob’s Pizza Bob’s Pizza

Andrew Carnegie Scottish Immigrant Leader of steel production in Pittsburgh Used Bessemer Process Utilized vertical integration or consolidation

Vertical Integration/Consolidation Think . . . Owning all phases of production in a business Andrew Carnegie and Carnegie Steel

Controlling the Market Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza! Bob’s Pizza Bob’s Trucking Company Bob’s Dairy & Cheese Factory Bob’s Farm

From here to end – did not use for all classes As of Fall 2013 From here to end – did not use for all classes

“Gospel of Wealth” Carnegie’s philosophy - A person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

Monopoly vs. Cartel Monopoly – one company with complete control of a product or a service Cartel – a loose association of businesses in a similar field or that make the same product and agree to limit supply to drive up prices (drugs or OPEC)

Concerns Led to the Sherman Antitrust Act Enacted in 1890 Congress wanted to end trusts Was ineffective – not enforced More about it in future units

growth peak recession depression Business Cycle The growth and contraction of a nation’s economy – New Problem in the late 1800s

From here to end – did not use at all Fall 2013 From here to end – did not use at all

Industrial Revolution Working Conditions

Growing Work Force Immigrants Former Farm Families Women and Children Does not include African Americans

Survival Guide for Poor Families (aka, immigrants!) Force children to leave school for work Send children as young as age 6 to work Ask for aid from a private charity (church, etc.) Government Welfare is non-existent at this time!

Workday Length Typically 12 hours/day, 6 days/week

Division of Labor Changes Manufacturing When someone completes one task as part of the job Positive: MASS PRODUCTION – it increases business productivity Negative: workers no longer take pride in work and removes creativity

Think About Making Shoes as an Example of This Concept! He may never work on shoes!