1. The Rise of Big Business
AP US

2. Robber Baron v Captain of Industry
Stole from the public
Drained nation of natural resources
Corrupted public officials
Exploited workers with poor conditions and pay
Increased availability of goods
Reduced prices of goods
Built factories
Raised productivity
Created jobs
Philanthropy

3. Andrew Carnegie – Steel Industry

4. John Rockefeller – Oil Industry

5. JP Morgan – Banking Industry

6. Big Business Vocabulary
Monopoly – business that dominates an entire field of business
Horizontal Integration
Vertical Integration
Trust – business that owns “competing” companies
Interlocking Directorate (Morganization) – serving on the Board of Directors for multiple businesses
Pool – informal “agreement” by competing businesses to raise prices and share profits

7. Practice Writing
Evaluate the extent to which business leaders promoted economic development in the Gilded Age
Break down question
Was it only business leaders? If yes, need two ways they promoted business development. If no, see below:
Were there other factors? If yes, need to discuss one way business leaders promoted economic development and one other factor that promoted business development and how.
Write full thesis for essay
Write full body paragraph for business leaders

8. Wealth, Government, and Popular Attitudes
Defense of Wealth
Social Darwinism
Survival of the fittest applied to business and society
Gospel of Wealth
“God gave me my money” – John D. Rockefeller
Alger Stories
“rags to riches” – work hard

9. Wealth, Government, and Popular Attitudes
Laissez Faire Ideas
Free Enterprise Capitalism
Traditional Practices
Regulation?
Government Policy
land subsidies
low/no taxes
open immigration
few regulations
high tariffs
Discuss with a partner:
Did the US government follow a laissez faire policy in the first part of the Gilded Age? (1 point for/against)

10. Wealth, Government, and Popular Attitudes
Regulation of Business - 4
Granger Laws – state laws to regulate RRs
Wabash v. Illinois (1886)
Interstate Commerce Act – 1887
Creates Interstate Commerce Commission (ICC)
First regulatory agency in US history
ICC can regulate interstate trade; doesn’t do much at first
Sherman Antitrust Act – 1890
Outlaws “combinations in restraint of trade”
EC Knight v. US (1895)

11. Practice Writing
Evaluate the extent of change in business regulation in the period
1 Paragraph:
T – Make an assertion about the extent of change
E – Present two pieces of specific historical evidence to prove your point
A – Tie up your ideas and make your point – ANALYSIS
2-3 Sentences: (Complexity)
C – What is a continuity during the same era? Use one detail?

12. Social Darwinism
“The growth of a large business is merely a survival of the fittest… The American Beauty Rose can be produced in the splendor only by sacrificing the early buds which grow up around it.” - John D. Rockefeller

13. The Gospel of Wealth by Andrew Carnegie
This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his judgment, is best calculated to produce the most beneficial result for the community-the man of wealth thus becoming the sole agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer-doing for them better than they would or could do for themselves.

14. Horatio Alger Stories

15. Bosses of the Senate

16. Business Regulation?

17. Business Regulation?

18. Business Regulation?

19. Wabash v. Illinois (1886) Background: Legal Question(s):
Illinois tried to regulate RRs by prohibiting RRs from charging more for shorter trips.
Legal Question(s):
Does a state government have the power to regulate parts of interstate trade that lie within its borders?
Legal Decision: No
Impact:
Limited the regulatory power of the states. Sets the stage for the national government to regulate interstate trade

20. EC Knight v. US (1895) Background: Legal Question(s): Legal Decision:
The US government tried to regulate the Sugar Trust using the Sherman Act
Legal Question(s):
Was the Sugar Trust in violation of the Sherman Act?
Legal Decision:
No – The Sugar Trust was involved in manufacturing, not direct trade and Congress had no authority to break up the trust.
Impact:
Limited the effectiveness of the Sherman Act.