1. Robber Baron Andrew Carnegie Steel’s The Deal Pay as little as he could for raw materials, labor and shipping. Had enough money to buy the companies that performed all the phases of steel production, from the mines that produce iron to the furnaces and mills that made pig iron into steel. He even bought the shipping and rail lines necessary to transport his products to the market. Thus he completely eradicated any competition. This business strategy is called Vertical Consolidation. Carnegie was able to set his prices lower than any other competing company because of economics of scale. (Production increases, While the cost of each item produced decreases) Driving the other companies out of business. Carnegie was one of the richest people in America. Donating over 350 million dollars to libraries, museums, and universities. Yet his workers were paid next too nothing and worked in dangerous conditions. He believed that only “fit” people would become rich, and their were only a few people who could rise to the top. Making the other people mad at him.