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Big Business vs. Labor

Samuel
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Big Business vs. Labor

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    1. Big Business vs. Labor Corresponds with Chapter 14, section 3

    3. Create a Graphic Organizer!

    4. Andrew Carnegie Bio: Born in Scotland to poor parents Came to the United States in 1848 He was 12 years old Within 6 years he was the private secretary of the local superintendent of the Pennsylvania Railroad Rich enough by 1865 to quit

    5. Carnegie continued Bio continued: In 1873, Carnegie invests in his own steel company By 1899 Carnegie Steel is producing more steel than every factory in England How did he do this?

    6. Integration

    7. Vertical Integration Moves up and down the ladder, meaning you buy the previous step, and next step of your business. If you own a steel company, you buy the mining companies to get resources for you cheaper, and buy the railroads to ship the finished products out later

    8. Horizontal Integration Horizontal Integration is another way to cut costs and increase profits H.I. involves buying out everyone who is direct competition with you. i.e. Carnegie buying out every other steel company in competition with him

    9. Social Darwinism The theory of Social Darwinism grows out of the theory of evolution Means that the more fit in society will advance, weeding out the less able Used to support “Laissez Faire” which means “allow to do” in French Appealed to the Protestant work ethic

    10. Consolidation Many industrialists tried to eliminate competition by creating holding companies to buy out other companies’ stock Others created Trusts What is a trust? Ask John D. Rockefeller…

    11. John D. Rockefeller Bio: Born in 1839 in Richmond, N.Y. Started a small business Sold that business and invested in a new venture… Standard Oil

    12. Bio continued: In 1870, Standard Oil controlled 2-3% of the U.S. crude oil By 1880, Standard Oil controlled over 90% of the U.S. crude oil Did this through selling below cost to run competitors out of business, and then raised prices higher than normal Paid extremely low wages

    13. The Robber Barons Carnegie, Rockefeller, and others became known as the “Robber Barons” Take from the poor, give to the rich…well…at least themselves But were they all bad? Rockefeller did give away a small portion of his wealth…something to the tune of $500 million

    14. What is a “Trust” …an illegal combination of industrial or commercial companies in which the stock of the constituent companies is controlled by a central board of trustees, thus making it possible to manage the companies so as to minimize production costs, control prices, eliminate competition, etc.

    15. Sherman Anti-Trust Act The Sherman Anti-Trust Act is designed to make trusts illegal which interfered in interstate commerce It is ineffective for reasons as simple as not supplying a definition of the word “trust”

    16. Labor Unions Labor Unions emerge to protect workers from long hours, low wages, and unsafe conditions Different Unions Emerge Read “Labor Unions Emerge”, “Union Movements Diverge”, and “Strikes turn Violent” for homework These are on pages 450-455

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