1. Growth of Industry and Big Business

2. Essential Question
How did Big Business affect society and the economy in the late 1800’s / early 1900’s?

3. Rise of Industry and Innovation
Before: Run by families thus pretty small
This era: Biz grows VERY large

4. Why the Change? 1. Era of scientific research and new inventions
Ex: railroads, mills, and factories

5. Why the Change? 2. Lots of resources Oil and Coal
Trains = transportation from coast to coast

6. Why the Change? People moved from RURAL areas to URBAN big cities
2. Lots of resources available (CONT):
People moved from RURAL areas to URBAN big cities
Lots of IMMIGRANTS= lots of people= lots of workers

7. Rise of Industry and Innovation (cont.)
3. Govt helped by practicing laissez-faire (hands-off approach):
no environment laws, tax cuts for industry, stopped labor unions

8. Types of Businesses 1. Corporations Benefits-
Def: Group ownership of a business
Benefits-
Less risk if you lose money
Big profits which lead to more new tech and new industry
Production costs low by paying workers low wages and pay low raw material prices

9. 2. Monopoly Def: Complete control of a product of service
How: bought out competitors or drove them out of business
Benefit: no competitors so they can set your own prices.

10. 3. Cartel
Def: Businesses making same product agree to limit their production and keep prices high

11. 4. Trust
Def:
A method where companies assigns their stocks to a board of trustees who manage them.
Benefits:
Made the head of the board wealthy
Killed off competitors not in the trust
EX: This was used by Rockefeller, and helped him become extremely wealthy. It was also used in creating monopolies.

12. Discussion:
Why do you think the practices we just talked about are now illegal?

13. New Business Organization Types
Vertical integration – owning all levels of production, from raw materials to sales of product(s).
Goal: efficiency and economy; eliminating the “middle men”

14. New Business Organization Types
Horizontal Integration- buy similar companies to control market
Ex: Rockefeller’s Standard Oil

15. Gilded Age:
The tactics & methods introduced led to an age with lots of wealth but for only a few businessmen: Carnegie, Rockefeller, Vanderbilt.

16. Robber Baron v. Captains of Industry
Robber Barron:
-negative viewpoint
-Greedy business owners who took advantage of workers and swindled the poor.
Captains of Industry: -positive viewpoint -provided jobs and opportunity, developed technology and infrastructure

17. What do you think this cartoon represents?
What is happening in the arena?
In the background?
Would it be easier to replace a craftsman who makes goods by hand or an industrial laborer? Why?
monopoloy
labor

18. 1.What is the message of this cartoon? 2. What images prove this?

19. Social Darwinism
Def: Evolutionary idea that only strongest and best businesses in a market survive.
“Pull yourself up by your own bootstraps”