1. By: Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY with additional slides and text by Bob Daugherty

2. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. Causes of Rapid Industrialization

3. New Business Culture 1.Laissez Faire  the ideology of the Industrial Age.  Individual as a moral and economic ideal.  Individuals should compete freely in the marketplace.  The market was not man-made or invented.  No room for government in the market!  Individual as a moral and economic ideal.  Individuals should compete freely in the marketplace.  The market was not man-made or invented.  No room for government in the market!

4. 2. Social Darwinism × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” × Should not help the lower classes × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” × Should not help the lower classes Herbert Spencer

5. 2a. Social Darwinism in America William Graham Sumner Folkways (1906) $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile! $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile!

6. New Business Culture: “The American Dream?” 3.Protestant (Puritan) “Work Ethic”  Horatio Alger [100+ “rags to riches” novels] 3.Protestant (Puritan) “Work Ethic”  Horatio Alger [100+ “rags to riches” novels] Is the idea of the “self-made man” a MYTH??

7. New Type of Business Entities 1.Pool (divide up industry among a few competitors to fix prices) 2. 1887  Interstate Commerce Act  Interstate Commerce Commission created. 3.Trust  John D. Rockefeller 1.Pool (divide up industry among a few competitors to fix prices) 2. 1887  Interstate Commerce Act  Interstate Commerce Commission created. 3.Trust  John D. Rockefeller  Standard Oil Co.

8. JOHN “WRECKAFELLOW” ROCKEFELLER Began Standard Oil company Came to control 90% of oil industry Created a trust First “billionaire”

9. Standard Oil Co.

10. ANDREW CARNEGIE “Prince of Steel ” Scottish immigrant who ultimately controlled most of the steel industry Wrote “The Gospel of Wealth” (1901) Believed that “the man who dies rich, dies disgraced.” Rich should spend half of life making money and half of life giving it away Gave away hundreds of libraries, started colleges, donated pipe organs to churches He pioneered this practice now called philanthropy

11. “On Wealth” Andrew Carnegie $ The Anglo-Saxon race is superior to others $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $T$The Anglo-Saxon race is superior to others $I$Inequality is inevitable and good. $W$Wealthy should act as “trustees” for their “poorer brethren.”

12. “Acre of Diamonds” Religion in the Era of Industrialization Russell H. Conwell $ Wealth no longer looked upon as bad. $ Viewed as a sign of God’s approval. $ Christian duty to become rich. $ Should not help the poor (if God wanted them to have money, they would have it!) $ Wealth no longer looked upon as bad. $ Viewed as a sign of God’s approval. $ Christian duty to become rich. $ Should not help the poor (if God wanted them to have money, they would have it!)

13. New Financial Businessman The Broker:  J. Pierpont Morgan (banker who bought Carnegie Steel and made it the first billion dollar corporation as US Steel The Broker:  J. Pierpont Morgan (banker who bought Carnegie Steel and made it the first billion dollar corporation as US Steel

14. New Types of Business Entities 2.Trust:  Horizontal Integration: a single organization owns all the businesses in a particular industry (Rockefeller0 2.Trust:  Horizontal Integration: a single organization owns all the businesses in a particular industry (Rockefeller0  Vertical Integration: a single trust owns all the steps of a product ‘s manufacture (Carnegie )

15. Vertical and Horizontal Integration

16. TERMS YOU SHOULD KNOW MONOPOLY: One company becomes the one (mono) seller (poly) TRUSTS: Several companies are owned by one large company. Trusts dominated business during the Gilded Age and controlled prices and wages. Similar to a monopoly Rockefeller’s Standard Oil was the most famous trust Some people said Rockefeller was more powerful than the US government

17. William Vanderbilt $ “The public be damned!” $ “What do I care about the law? H’aint I got the power?” $ Came to control most steamship lines, railroads $ I won’t sue you! The law will take too long!... I will ruin you! $ “The public be damned!” $ “What do I care about the law? H’aint I got the power?” $ Came to control most steamship lines, railroads $ I won’t sue you! The law will take too long!... I will ruin you!

18. Cornelius [“Commodore”] Vanderbilt “Can’t I do what I want with my money?”