The Rise of Big BusinessThe Rise of Big Business

Robber BaronsRobber Barons

• Business leaders who built their fortunes by stealing from the public– Drained country of natural resources– Drove competitors to ruin– Paid workers meager wages– Dangerous/unhealthy conditions

Captains of IndustryCaptains of Industry

• Business leaders who served their nation in a positive way– Increased supply of goods:

• factories, productivity

– Created jobs– Founded/funded museums, libraries

Barons or Captains??Barons or Captains??

• Andrew Carnegie– Steel King– Created Bessemer process to create steel

easier and cheaper

• John D. Rockefeller– Oil tycoon

• J. P. Morgan– Banker who financed many industries

Social DarwinismSocial Darwinism

• Society should do as little as possible to interfere with people’s pursuit of success

“Society as a whole would benefit”

Monopolies vs. CartelsMonopolies vs. Cartels

• Monopoly– Complete control of a

product or service– Remaining company

could charge any price

• Cartel– Loose association of

businesses that make/supply the same product

– Members agree to limit supply of product and keep prices high

Combination & IntegrationCombination & Integration

1. Horizontal Combination– Combine many competitors into one

company

2. Vertical Integration– Gain Control of all phases of production

Gospel of WealthGospel of Wealth

• Hard work and perseverance leads to wealth and that God justified attainment of great wealth.

• A new view recently stated that wealth garnered from earthly success should be used for good works

• Andrew Carnegie promoted this view in 1889 after securing millions through steel manufacturing