1. Your Warm-up . . .
Do you see an old woman or a young lady?

3. It Depends on Your Perspective!
Young Old Lady Woman

4. Try Another One . . .
Frontal View or
Side Profile?

5. What’s Your Perspective?
Man Playing A Young Saxophone Woman

6. It’s the Same With Business Leaders of the Day!
Cornelius Vanderbilt Railroads
John D. Rockefeller Oil
Andrew Carnegie Steel
Philip Armour Meatpacking
J.P. Morgan Banking

7. Carnegie and Rockefeller What Are They?
Robber Barons
Captains of Industry

8. Robber Barons Business leaders who get rich off the public
Drained natural resources
Paid low wages, required long hours of workers

9. “Robber Barons”

10. Persuaded public officials to interpret laws in their favor.
Drove their competitors to ruin.

11. Captains of Industry
Business leaders who served their nation in a positive way.
Increased the supply of goods, raised productivity and expanded markets.

12. Created jobs that allow many Americans to buy new goods and raise their standard of living.
Also created museums, libraries, and universities, many of which still serve the public today.
Carnegie Hall

13. Carnegie as a Philanthropist
A Philanthropist uses wealth to improve society
Carnegie funded the building of libraries, education facilities, and music/arts facilities

14. It’s the Same With Business Leaders of the Day!
Cornelius Vanderbilt Railroads
John D. Rockefeller Oil
Andrew Carnegie Steel
Philip Armour Meatpacking
J.P. Morgan Banking

15. Different Leaders Organize in Different Ways!
Horizontal Integration/Consolidation Or
Vertical Integration/Consolidation
They prosper due to lack of government involvement

16. John D. Rockefeller and the Standard Oil Company
Wealthy man who saw the oil industry as a way to get richer
Made illegal deals with railroads to transport oil cheaper – weakens refineries that he buys
Utilized horizontal integration or consolidation

17. Horizontal Integration/Consolidation
Think . . .
MONOPOLY
John D. Rockefeller and Standard Oil Company

18. Controlling the Market
Bob’s Pizza
Nino’s
Pizza
Pat’s
Pizza
Caruso’s
Using Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops!
Bob’s Pizza
Bob’s Pizza
Bob’s Pizza
Bob’s Pizza

19. Andrew Carnegie Scottish Immigrant
Leader of steel production in Pittsburgh
Used Bessemer Process
Utilized vertical integration or consolidation

20. Vertical Integration/Consolidation
Think . . .
Owning all phases of production in a business
Andrew Carnegie and Carnegie Steel

21. Controlling the Market
Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza!
Bob’s Pizza
Bob’s Trucking Company
Bob’s Dairy & Cheese Factory
Bob’s Farm

23. From here to end – did not use for all classes
As of Fall 2013
From here to end – did not use for all classes

24. “Gospel of Wealth”
Carnegie’s philosophy - A person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

25. Monopoly vs. Cartel
Monopoly – one company with complete control of a product or a service
Cartel – a loose association of businesses in a similar field or that make the same product and agree to limit supply to drive up prices (drugs or OPEC)

26. Concerns Led to the Sherman Antitrust Act
Enacted in 1890
Congress wanted to end trusts
Was ineffective – not enforced
More about it in future units

27. growth peak recession depression
Business Cycle
The growth and contraction of a nation’s economy – New Problem in the late 1800s

28. From here to end – did not use at all
Fall 2013
From here to end – did not use at all

29. Industrial Revolution
Working Conditions

30. Growing Work Force
Immigrants
Former Farm Families
Women and Children
Does not include African Americans

31. Survival Guide for Poor Families (aka, immigrants!)
Force children to leave school for work
Send children as young as age 6 to work
Ask for aid from a private charity (church, etc.) Government Welfare is non-existent at this time!

32. Workday Length
Typically 12 hours/day, 6 days/week

33. Division of Labor Changes Manufacturing
When someone completes one task as part of the job
Positive: MASS PRODUCTION – it increases business productivity
Negative: workers no longer take pride in work and removes creativity

34. Think About Making Shoes as an Example of This Concept!
He may never work on shoes!