1. BUSINESS IN THE GILDED AGE

2. Focus Question: What are some of the stores you like to shop at? Why do you prefer to go to those stores?

3. APUSH Objectives: After today’s lesson you will: Describe the rationale behind “trusts” Outline the major business models of the late 19 th century Discuss the interpretation of “Robber Barons” and “Industrial Statesmen”

4. Big Business Comes of Age Entrepreneurs tapped onto the resources of the day Used financial resources of Wall Street and abroad Drew on technical expertise Used the vast supply of labor and resources. Many made vast fortunes

5. Growth of New Business Models Growth of corporate giants Bigger the firm, greater access to resources Small, family firms found it hard to operate

6. Growth of the Trust Many businesses consolidated into Trusts Sought control of the market in a given area. Provided greater economies of scale Allowed for far greater profits

7. Models of Integration Numerous models of Trusts Two principal patterns Horizontal Integration Control a single step in production process Vertical Integration Control corporations on each step of the process

9. Monopoly Became the Rule Nearly all industries part of the monopolistic drive Promoted by ideas of Social Darwinism “Survival of the Fittest” Justification of ruthless tactics Justified the depths of poverty Justified autocratic approaches

10. Robber Barons v. Industrial Statesmen Abuses within the system led many to criticize entrepreneurs Lack of competition Exploited workforce Corruption of Government Others praised entrepreneurs Built the wealth of the nation Developed a multitude of new products Success stories

11. Which Were They? ROBBER BARONS INDUSTRIAL STATESMEN

12. Which Were They? ROBBER BARONS Exploited Workers Drained Natural Resources Controlled Government Devastated Competition Ruled Autocratically INDUSTRIAL STATESMEN Created wealth Created Jobs Made the U.S. a world power Developed a bevy of new products and industrial procedures Philanthropists

13. The Gospel of Wealth Some grew uncomfortable with the situation Andrew Carnegie promoted the Gospel of Wealth Riches were justified if the wealthy used his wealth for the community “The Man Who Dies Rich Dies Disgraced.”

14. Reforms proposed Many saw the government as a tool to prevent monopolies Sherman Antitrust Act Forbade “combinations in restraint of trade” Did not define trusts Rarely used against any monopoly. Ineffective