1. The Growth of Big Business in America
Topic 1.1 and 1.2

2. Reason #1
America’s vast natural resources allowed for rapid industrial growth.
Most growth takes place in the North, the South lags far behind in Industrialization

3. Reason #2 The Transcontinental Railroad
The TCRR moves resources and products around the country efficiently!
First BIG business in America
The key to the opening of the west
Ties America together

4. Reason #3
Vast numbers of immigrants were coming to the United States. They were willing to work long hours for low wages in American factories for a chance at a better life.

5. Reason #4
The Free enterprise system encourages the rise of “Entrepreneurship”
Talented businessmen with an abundance of capital
Growing population
“helpful” government

6. Reason #5
Laissez-Faire government policies encourages business growth.
Individuals should compete FREELY in the marketplace
There is no room for GOVERNMENT INTERVENTION
This is the ideology of the Gilded Age
Laissez-faire is extremely important for you to remember all the way through the Great Depression

7. Laissez-faire leads to…
Social Darwinism
The “Fit” succeed and the “unfit” fail
Government must not help those who fail
Herbert Spencer  coins the phrase: “Survival of the Fittest” (i.e., sucks to be you if you’re poor)

8. Reason #6
Technological innovations allowed business to become much more efficient.

9. Technological Innovations
Bessemer process
Refrigerated railcars
The use of Oil as fuel
Telegraph, telephone
The harnessing of electricity
light bulb, electricity powered factories
Thomas Edison – Mr. Electricity

10. Business Innovations
Forward thinking businessmen found ways to make their companies more efficient (profitable)
Time Study Analysis
Reorganization of work
ASSEMBLY LINE

11. New Business models
Small family business gave way to much larger Corporations, which developed into massive Monopolies.

12. The Monopolies gained control over other business because they were so efficient
Horizontal Consolidation
Vertical Consolidation
Pg. 75 in your book
These new business models allowed a few corporations to take over all of their competitors.
John D. Rockefeller
The richest man in the history
of the known universe…literally.

13. Monopolies turn into… Trusts!
Because the government was attempting to regulate unfair and dangerous business practices, big companies reorganized to circumvent the laws, forming TRUSTS,
John D. Rockefeller
Inventor of the Trust…still filthy rich

14. ANDREW CARNEGIE
Steel
Immigrant from Scotland, as a boy worked as a bobbin boy ($1.20/Week!)
1861 started his first iron business.
Becomes the largest manufacturer of steel in the world!

15. “On Wealth” “Gospel of Wealth” (1901).
Inequality is inevitable and good.
Wealthy should act as “trustees” for their “poorer brethren.”
Gave away his vast Fortune
Education/Arts
Andrew Carnegie

16. JOHN D. ROCKEFELLER Tireless worker with a great mind for efficiency
BRUTAL businessman
Creates Standard Oil
Refines 90% of the oil
in America!
Fortune peaks at $200 Billion!

17. Cornelius Vanderbilt – “The Biltmore” – Largest House in the U.S.

18. The Gospel of Wealth: Religion in the Era of Industrialization
Wealth no longer looked upon as bad.
Viewed as a sign of God’s approval.
Christian duty to accumulate wealth.
Should not help the poor.
Russell H. Conwell

19. Widening income gap
With the rise of corporations and monopolies, America saw a divide developing between the wealthy and the rest of the country; in a capitalist system, this is both natural and dangerous.

20. “Robber Barons” or “Captains of Industry”?
Are the industrialists fostering innovation, building a stronger America, and creating wealth and jobs?

21. “ The Protectors of our Industries”
Are they gaining vast fortunes with corrupt business practices at the expense of their workers and the American consumer?

22. The “Bosses” of the Senate
Admired at the beginning of the Gilded Age,
the Industrialists were mistrusted by the public
by the end of the century.

23. Regulating the Trusts
As a result, but the 1880’s, the government began to reign in the Trusts
Interstate Commerce Act (Railroad Regulation)
Sherman Anti-Trust Act
This is called “regulation”, and business HATES it!