1. Big Business and Organized Labor
AIM: How did “big business” change the workplace?
Do Now: What do all of the following have in common?

2. “Big Business”
Free Enterprise System (capitalism): economic system where individuals (entrepreneurs) own private businesses and compete
Gov’t doesn’t tell people what to sell, how to sell, or what prices to charge

3. New Ways of Doing Business
Proprietorship: 1 person owns a small business
Corporation: business owned by many investors (more than 3) who buy stock (a share) in the business
Monopoly: one company controls an ENTIRE industry. There is NO competition. (ex. Collegeboard SAT)
Trust: 2 companies join together to control an industry

4. “Robber Barons” vs. “Captains of Industry”
Robber Baron: use unfair techniques to make money and eliminate competition
Captain of Industry: build up the economy, create jobs, and make goods affordable

5. Andrew Carnegie “Big Businessman”
Controlled every step of the steel-making progress steel monopoly
Carnegie Steel company

6. “Gospel of Wealth”
Belief that the rich have a duty to help the poor and improve society
Philanthropist
“I started life as a poor man and I wish to end it that way”

7. Carnegie’s “Vertical Integration”
Controlled all of the steps required to change raw materials into finished goods
Carnegie Steel
Oil
Ships
Railroad
Steel Mills
Iron Mine

8. John D. Rockefeller richest man in in the oil business.
Standard Oil Company Trust
Oil began being used in all types of machines, like cars.

9. Rockefeller's “Horizontal Integration”
Purchase of competing companies in the same industry
Bought all oil companies

10. John Pierpont (J.P.) Morgan
Banker
Bought railroads
Bought Carnegie Steel
Created US Steel

11. Cornelius Vanderbilt
Railroad Baron
Owned 4,500 miles of RR tracks

14. Social Darwinism Survival of the fittest Gov’t stays OUT of business
The “strongest” business would survive

15. Do you think the big businessmen were “robber barons” or “captains of industry?”