Warm-Up / Journaling

1. Warm-Up / Journaling • What makes business in America thrive? • What conditions make for strong businesses and a strong economy? • What conditions contribute to a weak economy?

2. Big Business Emerges Unit 3

3. Growing Companies • Monopolies – when a company manages to buy out all its competition • Vertical integration – buy out suppliers • Horizontal consolidation – buy out competitors • Holding Company – a company that bought stock for other companies • Oligopoly– an almost monopoly • Trusts – people who ran separate companies as one large company.

4. Social Darwinism • In science Darwin explained the concept of natural selection and survival of the fittest • The free-market economy is much like nature • Success and failure of business is dictated by natural law

5. Defining Success • Religion played a large role in American perception • “earn your keep by the sweat of your brow” • Rich were perceived as hard workers and the poor as lazy • Horatio Alger Jr. • Wrote stories, dime novels, about people, “pulling themselves up by their own bootstraps.” • In his stories if you were honest, devout, and hardworking regardless of your place in society, you would succeed. • “Capitalism’s greatest propagandist”

6. Robber Barons or Tycoons? • Large philanthropic ventures • Carnegie Foundation – built libraries • Rockefeller Foundation – money to education, built the University of Chicago • JP Morgan – donated to many charities, contributed heavily to the arts • Vanderbilt – money to education, built Vanderbilt University • “They are the bees that make the most honey even after they have gorged themselves in honey” • Sherman Anti-trust Act – made monopolies illegal • Robber Baron / Industrial Tycoons List • Andrew Carnegie • John D. Rockefeller • JP Morgan • Cornelius Vanderbilt