1. Growth of Big Business

2. Big Business: Two Views “Robber Barons” “Robber Barons” Connoted that business leaders stole from the public Connoted that business leaders stole from the public Paid workers meager, subsistence wages Paid workers meager, subsistence wages Drove competitors to ruin Drove competitors to ruin “Captains of Industry” Served nation in positive way Increased productivity, found new overseas markets, created jobs Founded museums, libraries, and universities

3. Some Leaders of Industry John Pierpont (J.P.) Morgan--Banking John Pierpont (J.P.) Morgan--Banking John D. Rockefeller—Standard Oil John D. Rockefeller—Standard Oil James B. Duke—Tobacco James B. Duke—Tobacco Andrew Carnegie—U.S. Steel Andrew Carnegie—U.S. Steel Cornelius Vanderbilt—railroads Cornelius Vanderbilt—railroads Bell--AT&T Bell--AT&T DuPont—chemicals, etc. DuPont—chemicals, etc. Some charitable Some charitable Most practiced conspicuous consumption, showing off the wealth by purchasing the most expensive material goods possible Most practiced conspicuous consumption, showing off the wealth by purchasing the most expensive material goods possible

4. Production of steel 1. Mining natural resources such as iron ore, coke, copper 2. Transport of resources to factory 3. Bessemer process to develop steel 4. Transport of steel to market for sale

5. Andrew Carnegie: Carnegie Steel Company Owned every aspect of his steel production Owned every aspect of his steel production 1. The mines that produced the iron ore 2. The ships that carried it from the UP to docks at Erie, Pennsylvania 3. The rails that transported it to his steel mills 4. The steel mills in Pittsburg Vertical Integration

6. Production of oil 1. Discovery 2. Retrieval 3. Transport to refinery 4. Refining into usable components 5. Transport to markets for sale

7. Horizontal integration Purchased refineries to turn crude oil into kerosene Purchased refineries to turn crude oil into kerosene Purchased miles and miles of pipeline Purchased miles and miles of pipeline Built and owned most oil cars used for transportation of crude oil to refineries Built and owned most oil cars used for transportation of crude oil to refineries John Rockefeller – Standard Oil

8. Sherman Anti-Trust Act Passed under pressure from citizens in 1890 Passed under pressure from citizens in 1890 Passed to limit the power of large business combinations known as trusts Passed to limit the power of large business combinations known as trusts Poorly written and rarely enforced Poorly written and rarely enforced Law did not accomplish what it was designed to do but it did create a precedent that Congress could place some regulations on business Law did not accomplish what it was designed to do but it did create a precedent that Congress could place some regulations on business Federal Government - Congress

9. Business Cycle Can be portrayed as a wave moving through the ocean Can be portrayed as a wave moving through the ocean 1. Top of the wave is known as the Boom period or crest 2. Bottom of the wave is known as the Bust period or the through  – also called a depression 3. As the wave moves from the crest toward the bottom of the through, it is called economic decline or recession 4. As the wave grows from the bottom of the through, it is called economic recovery