1. 14.3: “The Gilded Age”- Big Business
As the United States economy transformed itself and grew under the leadership of new tycoons, America's established mercantile society once again transformed itself under the impact of the nouveau riche, opportunistic industry leaders or speculative railroad promoters.
Opening Activity:
What arguments could be made on behalf of railroad tycoons to defend their practices? Think of at least ONE…

2. I. The Gilded Age [1870s-1890s] A. General Characteristics
economic growth
industrialization
reorganization of business
urbanization
dynamic political climate
- rise of special interests

3. B. Capitalism
free market economy: individuals and private corps. own means of production
- profit motive  competition
laissez faire: “hands off” approach by gov’t to deal w/ economy
- little regulation

5. II. John D. Rockefeller A. Oil Industry
refinement process turn oil into kerosene by removing waste
JDR sold oil “waste”
- paraffin to candlemakers
- petroleum jelly
- paving materials

7. B. Monopolies and Trusts
monopoly: company complete control over market for a product
trust: stock of many companies owned by select buyers who make decisions
*** both reduce fair business competition

8. C. Standard Oil Trust
RRs offered JDR rebates (discounted rates to ship)
 reduced price of oil sold to consumer
 smaller companies could not compete
 sold stock to JDR = out of business
automobile  gasoline = billionaire
criticized for labor practices  paid workers low wages

9. III. JP Morgan A. Banking and Investing first business in banking
became investor
- bought and improved smaller, mismanaged firms
proved not necessary to be builder or industrialist to be rich
- invest and/or finance business(es)  make $$$ on returns

10. IV. Fewer Control More A. “Robber Barons” or “Captains of Industry”?
“robber barons”  negative
-ruthless, stop at nothing to profit
“captains of industry”  positive
- ingenious methods to transform economy
philanthropists—promote welfare of others (donate money)
- Rockefeller—500 million
- Carnegie donated 90% of his wealth

12. HISTORY REPEATS ITSELF –
THE ROBBER BARONS OF THE MIDDLE AGES AND THE BARRONS OF TODAY