1. Define the following key terms. Use your book Social Darwinism
Big Burning Q of the Day
Define the following key terms. Use your book
Social Darwinism
Sherman Antitrust Act
Horizontal Integration
Vertical Integration `

2. The Growth of Big Business
Chapter 5
Section 3

3. Powerful Industrialists
Robber Barons
Bribed officials
Paid low wages
Dangerous conditions
Ruin the competition
Captains of Industry
Positive service
Increase supply
Factories
Productivity
Expand Markets
Found & Fund
the arts & education
                   
                 
who established large businesses in the late 1800’s

4. Andrew Carnegie Born in Scotland 1835 Immigrate 1848
Married & 1 daughter
Moved up the ranks in steel industry
Civil War - telegraph
Carnegie Steel Company
Bessemer Steel Mill
Mines, furnaces, mills, shipping & rail lines.
Vertical consolidation
“Make as much $$ as you want, then give it away.”
Age 30 making $50,000 yr. Cut prices until he drove competitors out of the market. By the time of his death in 1919 he had given away over $350 million to the arts & education.

5. Pennsylvania was the steel capital of the world

6. Cause & Effect: growth of Big Business
CAUSES
Railroad boom lowers the cost of shipping
New inventions make businesses more efficient
Nation has rich supply of natural resources
Small firms merge into GIANT corporations
EFFECTS
Steel & oil become giant industries
Monopolies, cartels, & trusts dominate major industries
Factory workers face harsh working & living conditions.
Labor Unions grow.

7. Social Darwinism Survival of the fittest.
Society should not interfere with the one’s drive to succeed.
The “FIT” will succeed & the “UNFIT” will be weeded out.
                     

8. The Competitive Edge
Monopoly – drive competitors out of business & raise prices
Cartel – agree to limit the supply of products & keep prices high
                                                      
           
           

9. John D Rockefeller 1839 – 1937 Sherman Antitrust Act
Rich from grain & meat during Civil War
Standard Oil Trust
Companies merged.
Horizontal Integration
Sherman Antitrust Act
Outlawed combination of companies that restrained interstate trade.
As a youth, Rockefeller allegedly said that his two great ambitions were to make $100,000 and to live 100 years. He died on May 23, 1937, 26 months shy of his 100th birthday, Standard Oil made him richer.