1. Industrial Growth Unit
Essential Question
What factors enabled the United States to develop into an industrial power?
Essential Understanding
The US was able to develop into an industrial power due to available resources, labor, migration and entrepreneurial decisions

2. Robber Barons or Captains of Industry

3. Corporation: a definition
A body of persons granted a charter legally recognizing them as a separate entity having its own rights, priveledges, and liabilities distinct from those of its members

4. Corporation Diagram

5. Corporation: a brief history
Developed after the Civil War
Developed when the need for large factories exceeded a single person’s financial capabilities
Allowed investors the opportunity to make money on investments without the need to do physical work

6. Corporation: Carnegie model
Vertical consolidation means that all phases of production were controlled by one company
MINES
SHIPS
RRs
Carnegie
MILLS
Steel Co.

7. Corporation: Rockefeller model
Horizontal consolidation means that one company brings many firms together in the same industry
purchased by
Rockefeller
Standard Oil
independent

8. Corporation: What is wrong?
Vertical consolidation created a monopoly because competitors could not produce as cheap
Horizontal consolidation created a monopoly because there were no competitors

9. Social Darwinism “Only the strong survive”
Idea that society reflects nature
“Only the strong survive”
Rockefeller and Carnegie were simply stronger than competitors thus allowing their businesses to survive

10. Gilded Age Economics
Robber Barons who eliminated competition or Captains of Industry whose leadership in business led to the emergence of the United States