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Andrew Carnegie. 1899 Carnegie Steel Improved quality and cut costs. John Rockefeller. Standard Oil Trust Employees paid low wages Drove out competitors with low oil prices When he controlled 90% of the oil, he then hiked up the prices. Vertical Integration. Bought out all his suppliers
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Andrew Carnegie • 1899 Carnegie Steel • Improved quality and cut costs
John Rockefeller • Standard Oil Trust • Employees paid low wages • Drove out competitors with low oil prices • When he controlled 90% of the oil, he then hiked up the prices
Vertical Integration • Bought out all his suppliers • Coal and iron mines → ore freighters → railroad lines • Controlled the entire manufacturing process
FOR SALE TO CONSUMERS DISTRIBUTION REFINING TRANSPORTING DRILLING AND EXTRACTING CRUDE OIL DEPOSITS
Horizontal Consolidation • Tried to buy out competing steel producers • When he sold his company in 1901, it was producing 80% of the nation’s steel!
Social Darwinism and Big Business • Natural selection of weeding out the weaker individuals and enabling the strong to survive • Rich deserve their wealthand poor deserve to be in poverty
Robber Barons • Ruthless business men who stop at nothing to achieve wealth • Accused of exploiting workers, unfair labor practices, horrible working conditions
Captain of Industry • Leaders who transformed the American economy with their business skills • Philanthropic • (charity work)
Holding Company • Corporation that does nothing but buy out the stock of other companies • Creates monopolies • Example: JP Morgan bought Carnegie Steel in 1901 and combined it with his U.S. Steel