Era Of Big Business
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Transcript

  • 1. Era of Big Business
    • Essential Questions:
    • Who were the leaders of industry in the early 1900s?
    • How did the leaders of industry acquire their fortunes?
    • What was Social Darwinism?
    • How did laborers respond to their working and living conditions and treatment by leaders of industry?
    • What was the Great Strike of 1877, the Haymarket Affair, and the Homestead Strike?
  • 2. Captain of Industry or Robber Baron?
    • Robber Baron
      • An American capitalist of the 19th century who became wealthy via ethically questionable tactics through use of natural resources , governmental influence , or low wage scales
    • Captain of Industry
      • An American business leader whose means of amassing a personal fortune contributes positively to the country in some way
  • 3. Vertical and Horizontal Integration
    • Horizontal Integration
    • Vertical Integration
    • A strategy used by a business that seeks to sell a type of product in numerous markets
    • Horizontal integration occurs when a company in the same industry and in the same stage of production is being taken-over or merged with another company at the same stage of production
    • Example: when one steel company takes over another steel company
    • Vertically integrated companies are united through a hierarchy and share a common owner
    • Each member of the hierarchy produces a different product or service, and the products combine to satisfy a common need
    • Carnegie used Vertical Integration
  • 4. Vertical Integration: Carnegie Coal Mines Ovens where coal was coked Railroads used to transport Coal Steel Mills that Manufactured Steel Ships used to transport Iron Ore Iron Ore Mines
  • 5.
    • Used vertical integration
    • Controlled railroads and banks
    • Disliked monopolies
    • By 1900s was creating a 25% of the nation’s steel
    • Made his fortune through control of oil
    • In 1877 he controlled 95% of refineries nation
    • Hiked oil prices far above original levels
    • Gave over $500 million to charity
    • Bought out Carnegie for $400 million
    • Dedicated his life to donating money to charity
    • By his death, in today's figures, he gave away about $4.3 billion dollars
  • 6. A New Level of Wealth
    • The wealthy proclaimed they were justified by God to have so much wealth
    • God gave them their money or they were a product of natural selection
    • Many fear a plutocracy would eventually form, or a government that is controlled by the wealthy
  • 7. Social Darwinism
    • Took Darwin’s theory of biological evolution and applied it to the social classes
      • Said there were certain species , or individuals , that flourished and passed their traits along to the next generation
      • Those that failed, died out , or did not succeed
    • The wealthy used it to justify why they were so rich and others were so poor
  • 8. Gospel of Wealth by Andrew Carnegie
    • Wealthy must distribute their fortune in a way that it will be put to good use
    • Poverty in a society could be eliminated by wealthy men and women
    • Softened his theory of Social Darwinism
    • Said ostentatious living and amassing private treasures was wrong
    • Said the wealthy were responsible for the recirculation of money back into society where it could be used to support the greater good
  • 9. In 1882 675 laborers were killed on the job Employers demanded 12 hour days; 7 day work weeks No sick or vacation days Women made $267 a year Men made $498 a year In 1900 Carnegie made $23 million dollars
  • 10. Great Railroad Strike of 1877
    • Response to wage cuts for second time in a year by the Baltimore & Ohio Railroad
    • Strike spread over 50,000 miles in the East
    • Pittsburgh strikers clashed with militia
      • 20 people died and 29 were wounded
    • This infuriated Pittsburgh strikers
      • They forced the militiamen to take refuge in a railroad roundhouse
      • They set fire to buildings and trains
      • Militia mounted an assault on strikers
    • After a month President Hayes sent in federal troops to end the strikes
  • 11. Haymarket Affair
    • Took place in Chicago (1886)
    • A rally in support of striking workers
    • Person threw a bomb at police as they dispersed the gathering
    • The blast and gunfire resulted in the deaths of 7 police officers and a number of civilians
    • In the legal proceedings that followed 8 anarchists were tried and convicted
      • 5 were sentenced to death and 3 were sent to jail
    • Considered to be the origin of international May Day , or the day to observe the achievements of workers
  • 12. Homestead Strike
    • 1892 strike culminating in a battle between strikers and private security agents
    • One of the most serious labor disputes in U.S. history
    • Between Iron and Steel Workers and Carnegie Steel Company
    • Carnegie won and the Iron and Steel Labor Union lost power and influence
  • 13. The Aftermath
    • More powerful unions became the more the company leaders refused to recognize them
    • Employers forbade union meetings , fired union members , and forced new employees to sign “ yellow-dog contracts ” swearing they would not join a union
    • Unions did emerge to protect workers but the powerful forces of industry prevented them from gaining real power to implement change