1. + Rise of the Corporation

2. + The Need For Cash Until 1880, most businesses owned by person or partnership Solution was the corporation A group that is authorized by law to carry on as a business enterprise with the rights of a single individual Entrepreneur takes advantage of new innovations and manage the 3 Factors of Production

3. + The Entrepreneurs John Rockefeller Builds 1 st oil drill in 1859 (Titusville, PA.) Establishes 1 st oil refinery in 1863 Creates “horizontal” integration Controls key phase of process (refining oil) Build oil “trust” to control 90% of oil refinery business Used “rebates” from R.R. to control competitors

4. + The Entrpreneurs Andrew Carnegie Invests in building steel mills Uses “vertical integration” Controls all phases of industry Bought iron ore mines in Minnesota Used his own shipping line to transport materials to Pittsburgh steel mills ALLOWED BOTH TO KEEP COSTS LOW AND DRIVE OUT COMPETITORS

5. + IMPACT OF BIG BUSINESS Richest 1% earn more than poorest 50% 40% in US live below the poverty line (make $1.50 / day) By 1880 45% of workers barely earn above $500 / yr. (poverty line) One-half of families live w/o property

6. + The Philanthropists Andrew Carnegie Began work as a bobbin boy for $1.20/week Used fortune to build 3000 libraries Carnegie-Mellon University Carnegie Hall for the Performing Arts Carnegie Institute for Research Donated total of $300 million dollars by 1919 ($64 Billion in today’s $$)

7. + The Philanthropists John Rockefeller In his first job as bookkeeper: he earned 50 cents a day Net Worth $663 Billion (2008 figure) Donated a total of $550 million over his lifetime Funded universities (Univ, of Chicago; Spellman, Yale) Funded medical research through Foundation (attacked yellow fever)