1. Big Business Chapter 6, section 3

2. Capitalism Economic system in which private businesses run most industries Competition determines how much goods cost and how much workers are paid For the most part, this is the kind of economic system we have in the U.S.

3. Rich person #1 = John D. Rockefeller C.E.O. of Standard Oil Worth $192 billion (adjusted for inflation) Used horizontal integration – bought all the similar products Controlled 90% of the oil refining business Paid employees low wages Sold his oil for a loss long enough to drive his competitors out of business

4. Rich person #2 = Andrew Carnegie Head of Carnegie Steel which made more steel than all the factories in Great Britain Worth $75 billion Used vertical integration – bought all the steps in the process

5. Social Darwinism Came from the theory of evolution – “survival of the fittest” allowed the strongest to survive and the weak to die off This led some people to say that the gov’t should stay out of business and let nature take it’s course According to this, rich people earned their money and poor people were lazy and inferior

6. Philanthropy Definition – donating to people in need, hospitals, schools, etc. Carnegie donated 90% of his wealth Rockefeller gave away over $500 million

7. Sherman Antitrust Act Made monopolies and trusts illegal Hard to enforce

8. The Wealthiest Americans Ever http://www.nytimes.com/ref/business/20070715_GIL DED_GRAPHIC.html http://www.nytimes.com/ref/business/20070715_GIL DED_GRAPHIC.html