The Industrial Revolution:
Big Business
Vocabulary pgs. 189- 194
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Free enterprise
Entrepreneurs
Corporations
Vertical integration
Horizontal integration
Trust
Sherman Antitrust Act
• Andrew Carnegie
• John D. Rockefeller
Free Enterprise- business that is
free from government
involvement
• This is called laissezfaire
• Protective tariffs for
business
• Land grants to railroad
Who benefited? entrepreneurs
• Or- people that start
new businesses
• Examples: Andrew
Carnegie- steel
• John D Rockefelleroil
Take a break…
What is a corporation?
A company that sells shares of
ownership called stocks- This is what
entrepreneurs formed
How were these corporations
organized? 2 ways
1. Carnegie- Steel- vertical
integration
2. Rockefeller- Oil- horizontal
integration
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Carnegie bought up every
business needed in the entire
process: saves $
Steel Mills
^
Railroads and ships
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Coal Mines
^
Iron Mines
Rockefeller bought up all
competitors in Oil market
• Can you think of an
example of this in our
society?
• By 1879- owned 90% of
U.S. oil refining business
• Also formed trusts- a legal
grouping of companies
under a single board of
directors
Almost Done…
Why were these individuals so
successful?
• Herbert Spencer says
“social Darwinism”
• “survival of the fittest”
• Government
regulating the
economy harms the
natural order
Problems with Social Darwinism
Not everyone agreed- would you?
Many people believed that they
earned their fortunes by unfair
business practices
• Monopolies- sole
control of a given
market (Carnegiesteel, Rockefeller- oil,
Gates- operating
systems)
• Eliminated
competition which
ensures lower prices
Sherman Anti- trust Act
• July 1890
• Stated that “any
attempt to monopolize
… any part of the
trade or commerce
among the several
States”
• Was difficult to
enforce
Homework!
Pg. 194 Identify and #1-3
All done!