1. The Rise of Big Business
Expansion of Industry
The Rise of Big Business

2. Changes in daily life
Entrepreneurs introduce new technologies and begin to make life easier and products cheaper for many Americans
Light bulb
Railroads
Bessemer Steel
Telegraph
Telephone

3. Changes in America
Many more natural resources discovered in the west (westward expansion)
Rise in population (larger families, immigration) = Larger workforce!!!
Government’s position in business- the government tried to support American business while taxing (tariffs) on foreign business

4. Tarriffs

6. Changes in Industry
Mass Production begins takes over in many industries making products cheap and labor more valuable. Machines help this too!
This puts more money in more pockets and at the same time gives them new products to buy with that money

7. Industrial Elites
Robber Barron- build fortunes by stealing from the public. Drain natural resources bribe public officials to make legal decisions more favorable to their causes.
Captains of Industry- Find new ways of doing things, take advantage of new technology, increase the economy and provide lower priced goods

8. Robber Barons/Captains of Industry
Carnegie- Steel
Rockefeller- Oil
Vanderbilt- Railroads
Amass huge fortunes practice vertical and horizontal integration, eliminating the competition.
Give huge sums to philanthropic causes

11. Monopoly- when one company has complete control of and industry, buy competition or drive them out Cartel- when several companies act in association to control and industry Trusts- when companies turn over their assets to a larger company in return for shares, a way to get around monopoly laws Corporations-owned by many people but treated as 1 person Holding Companies- Doesn’t make anything, owns stock in companies that do

12. Interstate Commerce Clause
Part of the Constitution that gives Congress the power to regulate interstate commerce
In the 1900s it is used to give congress the power to take on these new industrial giants and curb their control of the economy.

13. Sherman Antitrust Act
Made it illegal to form a trust that interfered with free trade between states or with another country.
(Remember that is a job of congress)

14. Consolidation- to bring many business together under 1 company
Horizontal consolidation
Bringing together many firms involved in one business
Vertical Consolidation
Gaining control of the many businesses that make up all phases of production

15. Horizontal consolidation

17. Railroads change American
Spur Growth (investment and movement west)
Links the nation (Union Pacific)
Get consolidated by a few big companies
Standardize the rails
Standardize the time (4 zones)

19. Darwin and Economics
Darwin's survival of the fittest is growing in popularity
Many apply this idea to human society
Many apply this idea to business
lais sez-faire- when the government stays out of business leaving buyers and seller to regulated it themselves

20. Part II
Unions

21. Unions
Trade unions- limited to people with specific skills, begin to get more popular with the spread of industry
Industrial unions- all craft workers and common laborers in a particular industry
Industries Oppose Unions, Why?

22. Communism Karl Marx- “father or communism”
Thought the working class would rise up and take over the means of production
People would own the means of production collectively
A lot of union members like this idea
A lot of business leaders use it against them

23. Benefit to Workers or Commies?
Unions get identified as Marxist (many times it was actually true)
Industries begin to “blacklist” trouble makers
Great railroad strike of ’77
Recession = wage cuts
80,000 workers involved/violence erupts
Hayes calls troops to Chicago

24. Knights of Labor 1st nationwide strike called for 8 hour day
Equal pay for women
End of child labor
Wanted arbitration
Haymarket riot ends their popularity

26. Pullman Strike Company Store (how does it resemble China)
Pullman company workers were fighting against the company store model
Workers strike and ARU (American Railway Union) stops handling Pullman cars
Federal Court orders a halt- Pullman and ARU both collapse

28. AFL Founded by Samuel Gompers Beginning of the modern union
Rejected Socialists and communist ideas
Pushes for better wages and conditions
Pushes for collective bargaining
Very successful
Still around today

29. Women Paid less (for the same work) Fired first
Excluded from most unions (including AFL)
Women’s Trade Union League- first union dedicated to women’s labor issues