Chapter 6 Section 2: The Growth of Big Business
Robber Barrons vs. Captains of Industry?
_________________ were business leaders who built their fortunes by stealing from the public
Example: Paid workers meager wages and forced them to toil under dangerous conditions
__________________ suggests that the business leaders served their nation in positive ways
Example: Created jobs that enabled many Americans to buy goods and raise standard living
______________________________ formed the Standard Oil Company in 1870
As a _______________________, he gave over 500 Million dollars to charities and institutions
Questionable share in oil industry
_______________________________ created Carnegie Steel Company
Gave large amounts of money to fund public _____________________________-Questionable labor practices
How do you feel? Do large business owners help or hinder or society?
Darwin
Charles Darwin’s theory of ______________________________
_____________________________- only the fittest survive to reproduce
_________________- society should do as little as possible to interfere with people’s success
Most American’s agreed that government should not interfere with private businesses
Do you feel that the government should have a say in large businesses and the way they run?
Gaining a Competitive Edge
Large business owners would use methods, fair or unfair, to gain a competitive edge
______________________________- market dominated by only a few large, profitable firms
______________________________- complete control of a product or service
_________________________- loose association of businesses that make the same product
If you owned a business, which of the three listed above would you choose? Why?
Carnegie Steel
Andrew Carnegie creates steel factories that capitalize on __________________________
Wealth allows Carnegie to develop _________________________- gaining control of the
many different businesses that make up all the phases of a product’s development
Carnegie would buy mines, furnaces, mills, and rail roads that all helped process his steel
Process allows prices to drop due to_______________________- as production increases, the
cost of each item produced is lowered.
Does Vertical Consolidation help one company as a whole or many companies? Why?
The Standard Oil Trust
John D. Rockefeller negotiates with __________ Companies to obtain refunds on oil transport
Refunds would go toward setting Standard Oil’s prices lower than competitors
Rockefeller bought out other oil companies through _______________________________bringing together of many firms in the same business
State laws prohibited one company owning stock of another company.
Rockefeller creates _____________________- managing companies as a single unit
The Government Response
Idea that Trusts were limiting industrial competition began a demand of government action to
_______________________________________ industrial giants
Government is hesitant to interfere
General Electric, Westinghouse, DuPont, Standard Oil, and Carnegie Steel
____________________- Outlawed combination of companies that restrained interstate trade
Law hinders ___________________________; worker combining to gain an advantage
Do you feel trusts and giant corporations were dominating and limiting industrial competition?
How do you think workers were treated in these large factories?