Warm Up. 1 Use your ipad to research The Gilded Age

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1 Warm Up 1 Use your ipad to research The Gilded Age 2 Create an bubble map with 20 bubbles on people, events, facts and other informacon on the Cme period known as the Gilded Age

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3 The Gilded Age

4 The Gilded Age I. The Gilded Age = time period dominated by big business, political corruption and extremes of wealth and poverty. A. Gilded = covered with gold but cheap/trash underneath II. The Gilded Age is the age of excess (too much) A. Big business, Big Labor Unions, Big Government CorrupCon A. During the Gilded Age the USA will experience three major shils (TIONS)

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6 Major Developments I. During the Gilded Age the USA changed in three major ways: A. Industrialization factories, industrial production B. Urbanization Americans moved to cities C. Immigration people moved to the USA from other nations

7 Rise of Big Business

8 Big Business I. Big businesses took control of America socially, policcally and economically during the Gilded Age A. They run our lives, our government & the way we spend money II. Big Businesses grew due to: A. Social Darwinism B. Laissez-faire economics C. VerCcal & Horizontal IntegraCon D. Unfair praccces à trusts, holding companies III. Businesses grew bigger and bigger and took more control over the people and government in the process

9 Monopolies I. CorporaCons formed during the Gilded Age A. Individuals own porcons (shares of a company) II. CorporaCons azempted to create monopolies to maximize profits: A. Monopoly- exclusive control over a product/encty B. Monopolies have no compeccon and can charge high prices C. Monopolies led to the rise of big business in the USA

10 Business Growth I. Big businesses used two new strategies in order to maximize profits II. Ver-cal integra-on = control of every step in produccon process by one company A. Companies would buy all the suppliers in an industry to keep other companies from purchasing materials needed (monopoly) III. Horizontal integra-on = control of the market for a single product by a single company A. Buying all businesses in the same market so one company controls the entire market (monopoly)

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12 I. Both methods of integration allowed big businesses to form in the USA à create monopolies

13 Laissez-Faire (hands off) I. Laissez-faire economics = government largely kept hands off approach towards businesses A. The American government did nothing to control big businesses in the USA B. Businesses had no rules to follow and often did things good for profits but bad for consumers II. Laissez-faire economics allowed Big Businesses to form

14 SOCIAL DARWINISM I. The concept of Social Darwinism states that in business it should be survival of the fizest II. Only strong businesses survive and weak ones should go out of business III. Only the biggest businesses and wealthiest men could survive leading to huge corporacons

15 INDUSTRIAL ENTREPRENEURS

16 Industrial Entrepreneurs I. The rise in big business is attributed to an increase in industrial entrepreneurs A. Entrepreneurs- business owners and investors II. Critics of these business leaders called them Robber Barons A. High prices are a form of robbery for the American people III. Business leaders instead referred to themselves as Captains of Industry A. Donated a portion of their wealth to help the average person

17 Robber Barons I. Many entrepreneurs gained more wealth than they could ever spend II. They gained wealth by cuang costs in any way possible A. Low wages for workers B. Poor working condicons C. Unethical business praccces D. High prices for goods III. They olen became known as Robber Barons because of this

18 Captains of Industry I. The industrial entrepreneurs preferred to be known as Captains of Industry II. Industrialists used much of their wealth to contribute beneficially to society III. They were considered philanthropists (people who give away their money A. Vanderbilt University B. Carnegie Hall C. Rockefeller Center D. Rockefeller donated $450 million before he died E. Carnegie donated enough money for 2,500 libraries to be built

19 Industrial Entrepreneurs 1) A. Carnegie - Steel 2) JP Morgan- 3) J. Rockefeller - Banking Oil Henry Ford automobiles 5) Vanderbilt railroads

20 Industrial Entrepreneurs Andrew Carnegie John D. Rockefeller Henry Ford JP Morgan Cornelius Vanderbilt Carnegie Steel à US Steel Co. Standard Oil Co. Ford AutomoCve JP Morgan/ Chase Bank New York Central RR Used verccal and horizontal integracon to create monopolies in their industries and charge high prices hurcng people Carnegie Hall/ Gospel of Wealth à rich people should give their money to poor Rockefeller Center à supported arts in NYC Laborers paid good wages/ cars cheap Donated art colleccon to MoMA in NYC / provided loans to businesses Created Vanderbilt University

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