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1. The student will describe the economic, social, and geographic impact of the growth of big business and technological innovations after Reconstruction.

   SSUSH 11

2. SSUSH 11a Explain the impact of the railroads on other industries, such as steel, and on the organization of big business
3. Bessemer Process Process for making steel invented by Henry Bessemer. Made Steel stronger by removing impurities. Uses air to blow out gases and carbon that weaken steel.
4. Benefits of the Bessemer Process Steel made cheaper and more affordable. Made for faster expansion of railroads. And more construction. Products made from steel are longer lasting and withstand pressure
5. The 1860s Expansion of Railroads caused Big Business to dominate the Economy of the United States.
6. The Increase in Railroadsstimulated national economic growth.
7. Monopoly Main goal is to eliminate competition. Considered unfair by progressives. During the 1800s industrial and business leaders accumulate wealth by forming monopolies and trusts.
8. Characteristics Definition An economic market in which there is only one supplier of a product and no market competition and the company has complete control over quality, wages, Prices. The only company. No other choice to buy the product or service. Monopoly : Examples Non-Examples Georgia Power is the only power company in Bainbridge. You can’t switch over to another company. If you want a cell phone you can shop with (Choice): Verizon Wireless or Alltel
9. Organization of Business to Eliminate Competition Horizontal Integration Vertical Integration A business strategy in which one corporation owns not only the company that produces the finished product, but also the companies that provide the materials needed. In some instances, the transportation to the market is also owned. A business strategy in which one corporation buys out all of its competitors. For instance, One Steel mill will buy out other steel mills that are competing against it.
10. Example of Vertical Integration Used by Andrew Carnegie in the formation of Carnegie Steel company
11. Vertical Integration Type of organization in which a company owns and controls the entire process of production from raw materials to manufacture and sale of finished product.
12. Owns Company that Makes Steel
13. Owns Iron Ore Mine
14. Owns Railroad to Transport Steel
15. Purpose of Horizontal & Vertical Integration John D. Rockefeller once said in his own words that he was determined to “pay nobody a profit” The purpose was to cut down on cost and enjoy the profits of the business. Simple formula to get rich: Bring in more money than you pay out!
16. Andrew Carnegie Scottish born founder of Carnegie Steel Company that produced more steel than all of Great Britain Sold his company to J.P. Morgan for almost $500 million in 1901 Then devoted his time to “Gospel of Wealth” – using his wealth to finance philanthropy
17. SSUSH 11b Describe the impact of the railroads in the development of the West; include the transcontinental railroad, and the use of Chinese labor.
18. Impact of Railroads - Positive Made it easier for people to move west and populate the west at a faster rate. Made life in the west possible by allowing farmers, ranchers, and other settlers access to eastern markets and resources.
19. Impact of Railroads - Negative Native Americans will suffer. Buffalo are killed and great numbers by fur trappers and cow ranchers and the Plains Indians relied heavily on the Buffalo to live. Interrupted Native American way of life. Native Americans forced to relocate to reservations. Native Americans forced to assimilate American customs and ways of life. (Dawes Act)
20. 1862 Transcontinental Railroad Railroad companies financed by the government to build the Transcontinental Railroad to connect eastern and western U.S. Union Pacific Railroad (Eastern) Central Pacific Railroad (Western) Joined at Promontory Point, Utah
21. Transcontinental Railroad
22. Chinese labor on Transcontinental Railroad Chinese underwent discrimination. Long hours Little pay Harsh weather, extreme heat, cold Dangerous environments. Many died.
23. SSUSH 11c Identify John D. Rockefeller and the Standard Oil Company and the rise of trusts and monopolies.
24. John D. Rockefeller & Vertical and Horizontal Integration John D. Rockefeller owned the Oil industry. Rockefeller bought out other oil businesses. (Horizontal Integration). Rockefeller also owned his own barrels, cans, to ship the oil in, the railroad to ship the Oil on, etc. (Vertical Integration). Rockefeller went a step further when he joined other Monopolies to form a TRUST!
25. Trust A business formation in which competing companies create one large corporation and each company is entitled to dividends.
26. Characteristics Definition Set prices. Control the industry. Total economic domination. A business arrangement under which a number of companies unite into one system with the intention of destroying competition and creating monopolies. Trust : Examples Non-Examples Trusts are illegal now so there are not real examples. Verizon, Alltell, At&t, Microsoft, and internet providers are not together and must COMPETE with one another to get consumers money. If Verizon, Alltell, At&t, and Microsoft, Internet providers come together they could dominate the communication industry. Eliminate competition, set prices, Competition results in cheaper prices, better quality, and more services.
27. John D. Rockefeller Founder of the Standard Oil Company in 1863 at the age of 24 He bought our destroyed his competition, Set up a monopoly on the oil industry and became very wealthy Tactic was Horizontal integration – He bought out all competitors to create a Monopoly then a Trust.
28. J. P. Morgan Bought Carnegie Steel in 1901 He merged it and other steel companies into US Steel in march 1901
29. “Robber Barons” “Captains of Industry” Wealthy entrepreneurs and businessmen during the Industrial Age Made the U.S. extremely wealthy – referred to in a positive way as “Captains of Industry” People underpaid, child labor, poor and unhealthy working conditions in order to make a profit – referred to as “Robber Barons” Notable robber barons include Andrew Carnegie and John D. Rockefeller
30. Laissez-Faire The idea that government would have a “hands-off” policy and would not regulate big Business No Minimum Wage, No OSHA, No law against child labor, no regulatory commissions for safe and clean food. Adam Smith Wealth of Nations
31. Social Darwinism Theory that grew out of Charles Darwin’s Origin of the Species theory of biological evolution. “survival of the fittest” Natural Selection Social Darwinism was a theory created by Herbert Spencer to explain the evolution of human society. This theory justified the disparity in wealth and encouraged unregulated competition and frowned on government regulation.
32. Characteristics Definition Only the fittest will be rich. Weaker will be poor. It is natures way. Natural for this to be. The idea that promoted inequality in wealth based on Charles Darwin’s theory of evolution but transferred to social differences among humans. Social Darwinism : Examples Non-Examples Everyone is equal and should have the same pay regardless. Bill Gates is rich because he is intelligent and worked hard. Average individual that drops out school, doesn’t read, and does drugs lives in poverty and jail because he/she is weaker and inferior. Government Regulation of Business. (minimum wage, OSHA, 40 hr. work week, no child labor) Redistribution of Wealth - Socialism.
33. John D. Rockefeller Quote “The growth of large business is merely the survival of the fittest.”
34. SSUSH 11d Describe the inventions of Thomas Edison; include the electric light bulb, motion pictures, and the phonograph, and their impact on American life.
35. Thomas Edison Wizard of Menlo park Invented electric light bulb, motion pictures, phonograph, Impacted American life.
36. Light Bulb & Electric Power Stations Allowed factory workers to work at night and production to occur at night. Electric Power Stations make electric power possible throughout cities. (steam powered)
37. Motion Pictures Made Movies Possible Charlie Chaplin First Actor, Silent Movies Miriam Hopkins Major Movie Actress Born Bainbridge, GA Acted 1930’s 1940’s Buried Oak City Cemetery Miriam Hopkins Dr. Jekyll & Mr. Hyde, 1931
38. Phonograph Made music and recorded sound possible. We have advanced to Mp3 and IPods.