1. Wassup B Spa? What are pros and cons of “Walmart”?

2. Industrialization in America: The Rise of Big Business
What are the pros and cons of industrialization in America during the Gilded Age?

3. What is “capitalism”?

4. CAPITALISM!!!!!!
CAPITALISM- economic system where means of production are PRIVATELY owned
What is the opposite?

5. INDUSTRIALIZATION IN AMERICA; THE “FACTORS OF PRODUCTION”:
LAND (NATURAL RESOURCES)- oil, coal, iron ore (steel)
LABOR- immigration, urbanization- cheap labor source
ENTREPENEURSHIP- people with the vision, talent, and willingness to take risk (HW)
Carnegie, Rockefeller, Morgan, Vanderbilt, etc…..
“CAPITAL”- (money, building, tools, machinery, etc.)
corporation- new type of business to raise more capital
Stocks- a share in the business investors can purchase

6. Andrew Carnegie John D. Rockefeller J.P. Morgan Cornelius Vanderbilt
HOMEWORK: ON-LINE, PLEASE LOOK UP ONE OF THE FOLLOWING ENTREPENEURS AND ANSWER THE QUESTIONS:
Andrew Carnegie John D. Rockefeller J.P. Morgan Cornelius Vanderbilt
How did this man acquire his wealth? (How did he beat competition in his industry)?
How did he (or his company) treat his workers?
How did he donate his money?
Fun Facts?
Is he a “Robber Baron” (evil) or a “Captain of Industry”?

7. NATURAL RESOURCES FUEL INDUSTRIALIZATION:
OIL- “Black Gold”
1859- steam powered drill can access oil underground
Refined for kerosene to light lamps (used to use whale oil)
Eventually gasoline is most valuable product (automobiles)
2. STEEL
BESSEMER PROCESS- new way to refine iron into steel (1850s)
RR’s, barbed wire, farm machinery
1883- Brooklyn Bridge- called a “wonder of the world”
Birth of the SKYSCRAPER- cities can now grow “upwards”

8. AN ERA OF INVENTIONS:
THOMAS EDISON- creates world’s first research lab in Menlo Park, NJ
1093 “patents”
1880- light bulb
Electricity- in homes by 1890s- electric light, refrigeration…
Factories no longer need to be by water
Factories no longer dependent on daylight
Other significant inventions:
Typewriter- 1867
Telegraph- 1837; Telephone- 1876
Creates new jobs for women- clerical office work
1903- airplane

9. IMPORTANCE OF RAILROAD:
First “big business”
RR- huge customer for steel, coal, iron, lumber, glass
(catalyzes other big businesses)
Creates a national market
Companies can market products to entire nation

10. Why is COMPETITION essential in a capitalistic society?
Why do producers NOT like competition?

11. THE RISE OF “BIG BUSINESS” IN AMERICA: KEY TERMS:
SOCIAL DARWINISM- theory of “survival of the fittest” is applied to human society. Economically, it leads to the policy of laissez- faire
__LAISSEZ- FAIRE French for “leave it alone”, essentially.
THE GOVERNMENT SHOULD NOT REGULATE BUSINESSES OR THE MARKETPLACE
BUSINESS CONSOLIDATION:
Mergers of business into one larger
business
VERTICAL INTEGRATION when a company controls suppliers, distributors, transportation etc.
HORIZONTAL INTEGRATION- when a companies that make similar products merge
MONOPOLY- when one company dominates an industry
TRUSTS- like a monopoly; competing companies run by “one board of trustees”

12. GOVERNMENT AND BIG BUSINESS DURING THE GUILDED AGE
According to laissez- faire, the government is “supposed” to stay out of business. In reality, governmental policies favor big business during the Gilded Age:
Railroads are SUBSIDIZED (Pacific Railway Act)
Tariffs are high
Quite a bit of bribery, corruption
Immigration laws are very easy
Military used to break strikes
1st effort to control trusts: SHERMAN ANTI-TRUST ACT (1890)
Ineffective- wording very lose; Supreme Court throws out 7/8 cases, consolidation continues

13. Andrew Carnegie John D. Rockefeller J.P. Morgan Cornelius Vanderbilt
HOMEWORK: ON-LINE, PLEASE LOOK UP ONE OF THE FOLLOWING ENTREPENEURS AND ANSWER THE QUESTIONS:
Andrew Carnegie John D. Rockefeller J.P. Morgan Cornelius Vanderbilt
How did this man acquire his wealth? (How did he beat competition in his industry)?
How did he (or his company) treat his workers?
How did he donate his money?
Fun Facts?
Is he a “Robber Baron” (evil) or a “Captain of Industry”?