The year 1844 marked the start of the second industrial revolution. This period after the Civil War was a period and from invention, a period of great industrial growth. It was going to take more than new technology to transform America though. It took head strong businessmen that weren't afraid to risk their money in investments. Companies that couldn't expand because of their tiny capitals were being left behind in the business world, so to get more capital they combined with other small companies, thus the age of big business was born.
Key Terms:
Andrew Carnegie: embraced the concept "money could make money". Had an eye for recognizing a good investment.
Robber barons: used to describe the powerful industrialists who established large businesses in the late 1800's.
Rockefeller: Formed the standard oil company in 1870
Social Darwinism: wealthy were most valuable group in society. Argued that Society should interfere with competition as little as possible. Argued that society would benefit from the success of the fit and weeding out.
Factors that created a new kind of business.
Larger pools of capital: entrepreneurs had to invest huge amounts of money and barrow money from investors
Oligopoly: industries run by only a few large, profitable firms.
Monopoly: complete control of a product or service.
Cartel: loose association of business that make the same product.
Consolidation: gaining control of the many different businesses that make up all the phases of a products development.
Horizontal Consolidation: involves bringing together many firms in the same business.
Sherman Antitrust Act: outlawed any combination of companies that restrained interstate trade or commerce.
Piecework: workers received a fixed amount for each finished piece they produced. Forced workers to work fast and efficient.
Sweatshop: the place where most piecework occurred. Where workers worked long hours at low wages.
Frederick Winslow Taylor: set out to improve worker efficiency in steel plants and therefore increase profits.
Division of Labor: factory workers performed one small task over and over to improve efficiency.
factory workers were ruled by the clock, discipline in the factories was strict. Often fined and fired workers for being late or talking.
Socialism: an idea that some were drawn too in this time, system that favors public instead of private control of the means of production. Wealthy saw it as a threat to their fortunes.
Labor Unions: organizing among workers in certain trades, helped members in bad times. Called for shorter workdays, higher wages and better working conditions.
Collective Bargaining: a prices that some Labor Unions used, process where workers negotiated as a group with employers. Workers acting as a group had more power than a single worker acting alone.
Enduring Understanding
If you were unable to combine companies with another person it would be very hard to succeed.
Andrew Carnegie was one of the biggest businessmen of his time. Carnegie trust was able to vertically consolidate and charge less for the product because they did not have to pay for any of the phases of production. This is because they were able to buy the other phases of production with the large capital they have. This allowed them to lower the prices of their product making it impossible for a smaller company to compete. The big start up cost also allowed for very few who entered the business to make a profit. If a company didn't combine with another company it would have trouble making a profit because it has such a small capital.
Enduring Understanding 2
Big business men often betrayed the public if it meant more money.
Robber Barons drained the country of its natural resources and bribed public officials and also drove competitors out of town. The pay for their workers was bad. Big businessmen often had a Monopoly, which is complete control of a product or service. Or formed a Cartel which is loose association of business that make the same product, so they could keep the prices high. They used Sweatshops to get the work done. Sweatshops are where most piecework occurred. Where workers worked long hours at low wages.
This topic of Labor vs Big business reflect the theme of People, Places, and Power in many ways. Labor vs Big
Big business vs Labor represents the theme "People" because this topic shows how several figures like John D. Rockefeller and Andrew Carnegie were able to rise above the rest of the business world and and live like kings. It also shows power because of the influence the companies had on the country. If a big business or businesses were able to get a monopoly or oligopoly on a product they could raise the prices forcing the public to pay if they wanted the product. Finally Big Business vs Labor shows places because of the expansion of big businesses. Their large capital made it possible for the businesses to expand to several regions and expand the company to other places. It also made many towns a lot of money. For example Titusville Pennsylvania became a major business town because Standard Oil began to drill their. All in all the topic Labor vs. Big Business is deeply rooted in the theme People, Power, and Places.
Key Terms:
Andrew Carnegie: embraced the concept "money could make money". Had an eye for recognizing a good investment.
Robber barons: used to describe the powerful industrialists who established large businesses in the late 1800's.
Rockefeller: Formed the standard oil company in 1870
Social Darwinism: wealthy were most valuable group in society. Argued that Society should interfere with competition as little as possible. Argued that society would benefit from the success of the fit and weeding out.
Factors that created a new kind of business.
Larger pools of capital: entrepreneurs had to invest huge amounts of money and barrow money from investors
Oligopoly: industries run by only a few large, profitable firms.
Monopoly: complete control of a product or service.
Cartel: loose association of business that make the same product.
Consolidation: gaining control of the many different businesses that make up all the phases of a products development.
Horizontal Consolidation: involves bringing together many firms in the same business.
Sherman Antitrust Act: outlawed any combination of companies that restrained interstate trade or commerce.
Piecework: workers received a fixed amount for each finished piece they produced. Forced workers to work fast and efficient.
Sweatshop: the place where most piecework occurred. Where workers worked long hours at low wages.
Frederick Winslow Taylor: set out to improve worker efficiency in steel plants and therefore increase profits.
Division of Labor: factory workers performed one small task over and over to improve efficiency.
factory workers were ruled by the clock, discipline in the factories was strict. Often fined and fired workers for being late or talking.
Socialism: an idea that some were drawn too in this time, system that favors public instead of private control of the means of production. Wealthy saw it as a threat to their fortunes.
Labor Unions: organizing among workers in certain trades, helped members in bad times. Called for shorter workdays, higher wages and better working conditions.
Collective Bargaining: a prices that some Labor Unions used, process where workers negotiated as a group with employers. Workers acting as a group had more power than a single worker acting alone.
Enduring Understanding
If you were unable to combine companies with another person it would be very hard to succeed.
Andrew Carnegie was one of the biggest businessmen of his time. Carnegie trust was able to vertically consolidate and charge less for the product because they did not have to pay for any of the phases of production. This is because they were able to buy the other phases of production with the large capital they have. This allowed them to lower the prices of their product making it impossible for a smaller company to compete. The big start up cost also allowed for very few who entered the business to make a profit. If a company didn't combine with another company it would have trouble making a profit because it has such a small capital.
Enduring Understanding 2
Big business men often betrayed the public if it meant more money.
Robber Barons drained the country of its natural resources and bribed public officials and also drove competitors out of town. The pay for their workers was bad. Big businessmen often had a Monopoly, which is complete control of a product or service. Or formed a Cartel which is loose association of business that make the same product, so they could keep the prices high. They used Sweatshops to get the work done. Sweatshops are where most piecework occurred. Where workers worked long hours at low wages.
This topic of Labor vs Big business reflect the theme of People, Places, and Power in many ways. Labor vs Big
Big business vs Labor represents the theme "People" because this topic shows how several figures like John D. Rockefeller and Andrew Carnegie were able to rise above the rest of the business world and and live like kings. It also shows power because of the influence the companies had on the country. If a big business or businesses were able to get a monopoly or oligopoly on a product they could raise the prices forcing the public to pay if they wanted the product. Finally Big Business vs Labor shows places because of the expansion of big businesses. Their large capital made it possible for the businesses to expand to several regions and expand the company to other places. It also made many towns a lot of money. For example Titusville Pennsylvania became a major business town because Standard Oil began to drill their. All in all the topic Labor vs. Big Business is deeply rooted in the theme People, Power, and Places.
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