1. Industrial and Business Leaders of the 1800s NCSCOS 5.02 AP USH Unit 15

2. Macro Concepts Conflict-problem or issue that is controversial and can cause problems without compromise Change-the transformation of a person, place or thing. Innovation-improvement and advancement in the way something is done. Power-the authority of a government to carry out the law. Supply and Demand-The belief that the amount of an item and people’s desire for it will influence the price. Laissez Faire-the belief that the government should leave businesses alone. Social Darwinism-Belief that certain people are born superior than others. People are successful because they earned it and unsuccessful people did not. Monopoly-type of business that runs its competition out of business and takes over the entire industry. Vertical integration-a strategy used by business to control every aspect of production. Horizontal integration-another term for monopoly. Micro Concepts

3. Gilded Age Time period from 1870-1910 when a small number of Americans became extremely wealthy due to their exploitation of Laissez Faire policies of the U.S. Government. Time period from 1870-1910 when a small number of Americans became extremely wealthy due to their exploitation of Laissez Faire policies of the U.S. Government. Railroads, The Steel industry and Oil companies controlled their business sectors with complete control. Railroads, The Steel industry and Oil companies controlled their business sectors with complete control. Competition between businesses was limited and prices of goods were very high. Competition between businesses was limited and prices of goods were very high. There was a huge disparity [difference] between the rich and poor. There was a huge disparity [difference] between the rich and poor. The decadent Biltmore Estate in Asheville, NC

4. Captains of Industry  These were business owners who were ruthless and did everything they could to be financially successful by controlling their types of business. They were called captains of industry as a result of their tactics.  These men became very wealthy and powerful because they controlled huge amounts of money.

5. Robber Barons Robber barons were business owners who sometimes broke the law or twisted rules to their advantage in order to make huge amounts of money. They controlled the wealth of the United States by “stealing” money from citizens with exorbitant pricing.

6. Thomas Nast’s cartoons A New York City cartoonist named Thomas Nast criticized the corruption and illegal activities of Tweed and other government officials. His cartoons were so effective because readers did not have to know how to read to understand what Nast was describing. Eventually the pressure applied by Nast led to Tweed’s arrest, prosecution and imprisonment.

7. Edwin Drake Drake was the first American to successfully drill for and find significant oil in the United States. Drake was the first American to successfully drill for and find significant oil in the United States. He discovered oil in Pennsylvania and refined it into kerosene. He discovered oil in Pennsylvania and refined it into kerosene. Kerosene was originally used for lamp fuel. Kerosene was originally used for lamp fuel. Because of his discovery other people later drilled for oil and eventually also became very wealthy. Because of his discovery other people later drilled for oil and eventually also became very wealthy. This discovery led to the vast expansion of oil exploration and the energy to fuel motorized engines. This discovery led to the vast expansion of oil exploration and the energy to fuel motorized engines.

8. Andrew Carnegie, Bessemer Process and U.S. Steel Carnegie was a Scottish immigrant who was very poor when he arrived in the United States. He worked his way up to owner of U.S. Steel Corporation which later became a monopoly in the steel business. Carnegie was shown the Bessemer process by a chemist who demonstrated how to create high quality steel for military weapons. The Bessemer process enabled him to make super strong steel in a quick manner using oxidation [air blown through molten steel]. The cost of steel production plunged and increased profits. He also used a business strategy called vertical integration which combined every part of the steel business in order to make higher profits.

9. The Gospel of Wealth  Not all wealthy business owners were bad!  Andrew Carnegie, a robber baron, gave away almost all of his money before he died.  He believed dying wealthy was a type of crime according to an essay written by Andrew Carnegie.  His financial gifts funded public libraries and museums across America.  Therefore, according to Carnegie, the wealthy had a responsibility to do good with their money through philanthropy.  Philanthropy is the act donating or giving money away to charities and needy causes to improve the public good.

10. J.P. Morgan Railroad and banking tycoon who financed numerous businesses and formed banking trusts He cleverly acquired ownership in companies that were often considered unfair. He purchased U.S. Steel Corporation from Carnegie for $400 million He often forced companies to dissolve when profits were siphoned off [workers lost jobs]

11. John D. Rockefeller and Standard Oil ► Rockefeller built on the success of Drake and went into the oil business. ► Because of the invention of cars and the use of gasoline Rockefeller became very wealthy. ► Rockefeller used a business strategy called horizontal integration to consolidate other businesses by taking them over. ► He was then able to create a monopoly and charge whatever he wanted to.

12. Vanderbilt Family The Vanderbilt family of New York dominated the railroad industry. The Vanderbilt family of New York dominated the railroad industry. The ruthless Vanderbilt family was well known for charging high fees for shipping freight. The ruthless Vanderbilt family was well known for charging high fees for shipping freight. They were also well known for bribing members of the U.S. government in order to get laws passed that would favor their business interests. They were also well known for bribing members of the U.S. government in order to get laws passed that would favor their business interests. The Interstate Commerce Act greatly reduced the power of the railroads. The Interstate Commerce Act greatly reduced the power of the railroads.

13. Herbert Spencer Herbert Spencer Some people believed the reason people were rich was because they were smarter. Some people believed the reason people were rich was because they were smarter. Nature favored much as the British Naturalist Charles Darwin thought it favored stronger creatures. Nature favored much as the British Naturalist Charles Darwin thought it favored stronger creatures. Poor people deserved their poverty because they were inferior according to the theory of Social Darwinism. Poor people deserved their poverty because they were inferior according to the theory of Social Darwinism. This concept of Social Darwinism was used by the Robber Barons as justification of their wealth. This concept of Social Darwinism was used by the Robber Barons as justification of their wealth.

14. Horatio Alger Horatio Alger wrote a series of inspirational novels telling various rags to riches tales. Horatio Alger wrote a series of inspirational novels telling various rags to riches tales. The stories focused on how kids from impoverished beginnings were able to pull themselves up by their bootstraps. The stories focused on how kids from impoverished beginnings were able to pull themselves up by their bootstraps. Very few of these stories were real but they offered hope for future success. Very few of these stories were real but they offered hope for future success.

15. Writing Assignment: Write a one page letter [if typed 12 pt Arial font, if handwritten one side of a page] in either of the two points of view below. Writing Assignment: Write a one page letter [if typed 12 pt Arial font, if handwritten one side of a page] in either of the two points of view below.  Write a letter to the U.S. Government complaining about one of the robber barons [what do you want to be done?] or or  Write a letter to the person [robber baron/captain of industry] complementing him about what he was able to accomplish?

16. Extra Credit  Write a one page rags to riches story about an immigrant who makes good and goes from very poor to very successful just like Andrew Carnegie or a character such as Raggedy Dick.

17. Image sources http://www.1892biltmorevillageinn.com/Pictures/Biltmore%20Estate.jpg http://notsodismal.com/wp-content/uploads/2009/03/84comm6jpg.jpeg http://explorepahistory.com/images/ExplorePAHistory-a0b6s6-a_349.jpg http://en.wikipedia.org/wiki/File:Andrew_Carnegie,_three- quarter_length_portrait,_seated,_facing_slightly_left,_1913-crop.jpg http://en.wikipedia.org/wiki/File:Andrew_Carnegie,_three- quarter_length_portrait,_seated,_facing_slightly_left,_1913-crop.jpg http://en.wikipedia.org/wiki/File:5051_Earl_Bathurst_Cocklewood_Harbour.jpg http://en.wikipedia.org/wiki/File:George_Westinghouse.jpg http://en.wikipedia.org/wiki/File:Westinghouse_Air_Brake_control_handle_and_valve.jpg http://explorepahistory.com/images/ExplorePAHistory-a0m4y1-a_349.jpg http://www.power-of-giving.com/images/philanthropy-1.jpg