1. The growth of big business 13.2

2. What are “Robber Barons” and “Captains of Industry?” Robber Barons:Robber Barons: People who built their fortunes by stealing from others. Captains of IndustryCaptains of Industry: People who built factories, expanded markets, and raised productivity in a POSITIVE way

3. WHAT DO YOU THINK? As we learn about these big businessmen, decide what you think they are? Did they do good (Captain of Industry) or bad (Robber Baron).

4. ANDREW CARNEGIE! STEELCaptain of the “STEEL” Industry Bessemer Process –Drove his competitors out of business by being the first to open steel plants using the Bessemer Process. (able to cut costs) –Was a philanthropist gospel of wealth –Preaches the “ gospel of wealth ” stating that people should be free to make as much money as they can, however, they should then give it away

5. Carnegie Hall and Carnegie Library

6. Social Darwinism: A Sociological Theory that society should do as little as possible to interfere with people’s pursuit of success. (meaning Government, laissez-faire)A Sociological Theory that society should do as little as possible to interfere with people’s pursuit of success. (meaning Government, laissez-faire) Then those who are most fit would succeed and become rich. (People left to compete with one another)Then those who are most fit would succeed and become rich. (People left to compete with one another) Society as a whole would therefore benefit and the unfit will be weeded out!Society as a whole would therefore benefit and the unfit will be weeded out!

7. Monopoly Monopoly: a company/person has complete control of a product or a service Good or bad? Gaining a competitive edge…

8. What if Starbucks had a monopoly on the coffee shop business? What could they do to the prices? What could they do to their product?

9. Cartel: Loose association of businesses that make same product and agree to make a limited amount of product to keep prices high Our next “Big Businessman” began by being a part of a cartel…

10. John D. Rockefeller Captain of OIL Standard Oil Company Bought out his competitors too by using his relationship with other businesses. Trust: a board of trustees who manage companies as a single unit

11. Methods of Industrial Control Horizontal Integration: Bringing together many firms that were in the same business! Vertical Integration: Gaining control of the many businesses that make up all phases of a product development!

12. Vertical Consolidation Carnegie Steel Company Coke (Coal) Fields Iron Ore Deposits Steel Mills

13. Which one did they do? Carnegie Vertical! Rockefeller Horizontal!

14. People who built their fortunes by stealing from others are referred to as: A.ROBBER BARONS B.CAPTAINS OF INDUSTRY C.ROBIN HOODS D.SOCIAL DARWINS

15. WHO IS THIS MAN? A.JOHN D. ROCKEFELLER B.CORNELIUS VANDERBILT C.ANDREW CARNEGIE D.SANTA CLAUSE

16. TRUE(A) OR FALSE(B)?? John D. Rockefeller was the captain of steel! FALSE!

17. NOT Which of the following is NOT true about Social Darwinism? A.Society should do as little as possible to interfere with people’ pursuit of success. B.Then those who are most fit would succeed and become rich. C. Society as a whole would therefore benefit and the unfit will be weeded out! D. A loose association of businesses that make the same product and agree to make a limited amount of their product to keep their prices high!

18. WHICH OF THE FOLLOWING DESCRIBES HORIZONTAL INTEGRATION? A.Bringing together many firms that were in the same business! B. Gaining control of the many businesses that make up all phases of a product development!

19. WHICH DO YOU THINK ROCKEFELLER AND CARNIGIE WERE?? A.ROBBER BARONS B.CAPTAINS OF INDUSTRY