Aim: How did the Industrial Revolution
transform American business?
Do Now:
List 2 modern day inventions you could not live
without and explain why.
HW: Big Business Emerges Worksheet
Rise of American Industry 1865-1920
• Post-Civil War: US developed a prosperous,
new economy based on the mass production of
goods.
• Economic development expanded in the North,
but weakened in the South.
• Entrepreneurs became wealthy and powerful.
• Government began to regulate business.
• Labor Unions formed to improve working
conditions.
Rise of Industry in the US Packet
• Directions:
• 1. Read and do Free Enterprise System
together as a class.
• 2. Steps on the Road to becoming
Industrial Giant individually.
• 3. Share before/after civil war picture of
business
Aim: To what extent were big business
leaders considered robber barons during
the Industrial Revolution?
Do Now:
How did the Industrial Revolution impact
the American lifestyle? Give 2 examples.
HW: Great Business Leaders: Heroes or
Villains? Handout.
Business Practices
• Monopoly: When 1 company controls the
supply or trade of a commodity or service
• Laissez faire capitalism: little to no
government interference in the economy
Business Practices
• Vertical Integration: Process in which a
company buys out its suppliers
• Horizontal Integration: Process in which
companies producing similar product
merge.
– Merge: A combination of two companies into
one.
Vertical Integration
Horizontal
Integration/Consolidation
• T-Mobile & Metro
PCS join to form one
cell phone company.
Bessemer Process
• Turns iron into steel
by oxidizing the
metal.
• Steel will be used for
railroads and
skyscrapers.
Andrew Carnegie
• Scottish immigrant who makes
fortune in railroad industry.
• Became leader of steel industry.
• Forced workers to put in long
hours at low wages.
• Donated money to education
and medical research later in
life.
John D. Rockefeller
• Formed Standard Oil Co.
• Controlled most of oil refinery
business
• Forced railroad companies to
give him special low rates for
shipping oil
• Used horizontal integration
• Donated money to education
and science later in life.
Cornelius Vanderbilt
• Most powerful railroad
baron.
• Son of poor farmer, earned
his first fortune in steamship
lines.
• Then bought up railroad
lines in NY and expanded to
Great Lakes region.
• Donated money to education
and science.
JP Morgan
• Consolidated steel
industry and railroad
industry
• One of most famous
financiers in business
history
Henry Ford
• Invented Model T, a car afforded by the middle
class.
• Used assembly line which made workers
expendable.
Assembly Line
Aim: How did the US government
attempt to regulate business?
Do Now:
Should the government be allowed to
have control over the economy? Explain.
HW: Prepare for Open Notebook Exam
tomorrow.
Business Regulation
• Wabash v. Illinois (1886) Supreme Court
Case:
– Issue: Whether a state government has the
power to regulate railroad prices on that
portion of an interstate journey that lies within
its borders.
– Outcome: Only Congress, not individual
states, have the power to regulate interstate
commerce.
Interstate Commerce Act (1887)
• Required that railroads charge fair rates to
their customers and make those rates
public.
• Also created the Interstate Commerce
Commission (ICC).
Sherman Antitrust Act (1880)
• Authorized federal action against any
"combination in the form of trusts or
otherwise, or conspiracy, in restraint of
trade."
• Any attempt to monopolize trade or
commerce is made illegal.
Big Business DBQ Packet
• Robber Baron v Captain of Industry