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.

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 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.

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

SimulationT-shirt shops

where will you shop?

Big Business and the Government

Horizontal and Vertical Integration

Textbook, page 171

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

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

The Gilded Age…1870s-1900 Where was the most money

made? Was this positive or negative for

America?

1870 1900

Steel Production

77,000 tons

11 million tons

Oil production 5 million barrels

63 million barrels

Railroad track 53,000 miles

200,000 miles

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)

Big Business and the Government: POVLeave Business Alone Laissez-faire Social Darwinism

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.)

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!

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…

Who are the billionaires (Robber Barons) of today?

Forbes 2011Rank Name Worth Age Source Country

1 Carlos Slim Helu & family $74 B 71 telecom Mexico

2 Bill Gates $56 B 55 Microsoft USA

3 Warren Buffett $50 B 81 Berkshire Hathaway USA

4 Bernard Arnault $41 B 62 LVMH France

5 Larry Ellison $39.5 B 67 Oracle USA

6 Lakshmi Mittal $31.1 B 61 Steel India

7 Amancio Ortega $31 B 75 Zara Spain

8 Eike Batista $30 B 54 mining, oil Brazil

9 Mukesh Ambani $27 B 54 petrochemicals, oil & gas India

10 Christy Walton & family $26.5 B 56 Walmart USA