Robber Barons or Captains of Industry?

1. Robber Barons or Captains of Industry? 11.2.5 Discuss corporate mergers that produced trusts and cartels and the economic and political policies of industrial leaders.

2. Homework • Read and take Cornell Notes on section 14.2 to prepare for an activity on Tuesday. • Challenge Option – Come up with 8 cause and effect statements from the reading. • Example: The South had fewer people  they lost the Civil War

3. 3 New Vocabulary words… • Mass Production – Used by Henry Ford to make cars more affordable. • Monopoly: Oil and steel industries were both controlled by monopolies at the beginning of industrialization. • Trust: a set of companies managed by a small group known as trustees, who can prevent companies in the trust from competing with each other. If all search engines were controlled by the same people. • Corporation: Google, Netflix, Apple. Any company that sells stocks.

4. HOT ROC: • Do billionaires have a responsibility to help the poor? • Do millionaires? • *HW Check • Organizational Categories for your project. • Project Reminder: • Essay outline with a thesis statement for the project is due on Friday

5. Simulation • T-shirt shops • where will you shop?

6. Big Business and the Government • Horizontal and Vertical Integration • Textbook, page 171

7. Andrew Carnegie$75 Billion • Don’t take notes on this section • Andrew Carnegie came from Scotland with his parents in 1848. • In 1861, at the age of 26, he started up the Freedom Iron Company, and used the new Bessemer process for making steel • He formed all of his companies into the Carnegie Steel Company in 1899, which controlled raw materials, manufacturing, storage, and distribution for steel. • Vertical Integration

8. John D. Rockefeller$192 Billion • Don’t take notes on this section • Born in 1839 • His working life started as a bookkeeper • He established one of the first oil refineries • 1870—With partners, forms a business trust: Standard Oil • At its peak, controls 90% of all oil companies • Horizontal Integration

9. The Gilded Age…1870s-1900 • Where was the most money made? • Was this positive or negative for America?

10. What would Rockefeller say… • Monopolies are good because we can produce goods at a lower cost to consumers! • Now everyone can have cheap oil and gas. • We use our wealth to benefit others through our charitable donations (philanthropy)

11. Big Business and the Government: POV Leave Business Alone Limit Business Sherman Anti-Trust Act 1911--Splits Rockefeller’s Standard Oil into 34 companies (A U.S. Court of Appeals found in 2001 that Microsoft violated the Sherman Act antitrust law.) • Laissez-faire • Social Darwinism

12. What would the Populists (poor farmers) say? • Monopolies are bad because they control the whole industry and there is no competition over prices. • We have to pay high prices to ship our wheat on the trains! • And these companies pay low wages to their workers!

13. Draw a Below the Surface graphic from each point of view… • 1. According to Rockefeller—monopolies are like… • 2. According to the Populists—monopolies are like…

15. Who are the billionaires (Robber Barons) of today?

16. Forbes 2011