Robber Barons & Big Business. Corporations & Bankers. Big factories have now replaced small factories = cheaper goods, faster service Railroads distributed these goods across the nation. Corporations & Bankers.
Big factories have now replaced small factories
cheaper goods, faster service
Railroads distributed these goods across the nation
Now that a few large companies were running major industries, they needed capital
To raise capital, expanding businesses became corporations
CORPORATION: business owned by investors
In exchange for investing, stockholders hope to receive DIVIDENDS: shares of a corporation’s profit
of major corporations
During an economic loss in the 1890s, Morgan invested in the stock of troubled corporations
companies into one: U.S. Steel Company
U.S. Steel Company becomes the 1st company in America to be worth over $1 Billion Dollars!
1859- Discovery of oil. Valuable resource that could act as fuel
J.D. Rockefeller builds oil refinery
I’ve got to get my hands on some of that black gold!
Used profits from his refinery to create Standard Oil Co. of Ohio
Grease me up, baby!
Hated the idea of competition, thought it was a waste
Who has the
1882 creates Standard Oil trust
Hey J.D. Thanks for being a billionaire tycoon and inspiring my record label!
RISE OF INDUSTRY
businesses are owned by private citizens who decide what to produce, how much to produce & what prices to charge
*GOOD for entrepreneurs starting out*
**CONTRAVERSIAL for our fat cats**
Many thought leaders of giant corporations were abusing the free enterprise system
Companies compete to win customers by making the best product at the lowest price
1. Trusts/ monopolies reduce competition
keep prices low or improve products
2. Hard for new companies to compete with powerful trusts
3. Few Fabulous Wealthy vs. Majority Wretchedly Poor
Political influence & wealth can
sway people in power to buy or
neglect certain companies
1890- banned formation of trusts and monopolies
Are they really giving back?
Or is Carnegie a rare example?
2. Growth of giant corporations brought
3. Better quality of life for
millions of Americans
standard of living in the world