Robber Barons & Captains of Industry
- 1. Captains of Industry & Robber Barons MAST HS US HIS – Period 4 Ms. Richardson
- 2. The Gilded Age • An era of economic growth, industrial expansion, unstable politics and high immigration. • Marked by advances in technology, transportation, communications and energy. • A few individuals became wealthy while many Americans lived in poverty and were overtaken by the corporate world.
- 3. Terms to Know • Social Darwinism: refers to Darwin’s theory of evolution “only the strong survive”. Used by Big Business men to justify what they did. • Lassiez-faire policies: hands off of business practices and people, no government regulations. • Capitalism: an economic system in which industries are privately owned, and the prices, production, and distribution of goods are determined by competition on a free market.
- 4. Terms to Know Pt. 2 Business Organizations • Monopoly: a situation in which one company has eliminated its competition. • Holding Company: a corporation that owns enough voting stock in another company to control its policies and management. Exists for the purpose of controlling another company. • Trust: an alliance of companies, run by a board of trustees, that function as one company. • Pool: when companies in a single market make an agreement on prices and the division of business.
- 5. Captains of Industry vs. Robber Barons Captains of Industry a.) served USA positively, created jobs b.) Philanthropists- giving to charities, founding libraries and museums, etc. Robber Barons a.) built fortunes from exploiting workers b.) drained USA’s natural resources
- 6. Captains of Industry vs. Robber Barons Captain of Industry • Increases availability of goods by building factories • Raises productivity • Expands markets • Creates more jobs • Funds many of the nation’s public institutions: practices philanthropy- (giving generously to charitable causes) Robber Baron • Drains the country of its natural resources. • Corrupts public officials to interpret laws in their favor. • Drives competitors to ruin • Pays poor wages • Forces workers to toil under dangerous and unhealthy conditions
- 7. Big Business Industrialist • Henry Ford – Transportation Net worth: $199 billion Business: Ford Motor Company (Ford is the second-largest U.S.-based automaker and the fifth-largest in the world). • John D. Rockefeller – Oil Net worth: $192 Billion Business: Standard Oil (at its peak, controlled 90% of all oil companies) • Andrew Carnegie – Steel Net worth: $75 billion Business: Carnegie Steel Company (controlled raw materials, manufacturing, storage, and distribution for steel).
- 8. Big Business Industrialist • Gustavus Swift – Meat-packing Net worth: $683 million Business: Swift & Company • J.P. Morgan – Finance Net worth: $41.5 billion Business: J.P. Morgan & Co. (financed railroads and helped organize U.S. Steel, General Electric and other major corporations). • Cornelius Vanderbilt – Transportation Net worth: $185 billion Business: New York Central Railroad
Editor's Notes
- #5: Q: What do these Business Organizations all have in common? A: They limit competition and keep all of the wealth and resources in the hands of a small few.