Ch 6.3 The Rise of Big Business
Business leaders guided industrial expansion and created new ways of doing business.
Objectives:
- To analyze the growth of corporations
- To describe monopolies and trusts and evaluate their effects
- To summarize the positive and negative aspects of the Gilded Age
- To evaluate the development of the economy of the South
Corporations -
By selling stock, corporations can raise a lot of money.
Corporations do not end even after their founders die.
Corporations are less of a risk to investors.
Section 3 Vocabulary |
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Robber baron – business person who became rich through dishonest methods. |
Corporation – business owned by investors who bought stock in the company. |
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John D. Rockefeller – leader of the oil industry. |
Andrew Carnegie – leader if the steel industry. |
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Monopoly – company that has sole control of an industry. |
Trust – a legal document created to hold stock in many companies. |
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Philanthropist – a person who gives away large amounts of money to charities. |
Gilded Age – term used to describe a time of both tremendous wealth and poverty in the late 1800s. |
Video: John D. Rockefeller: Oil, Money and Power (3:50)
The Standard Oil Trust grew to become an industrial monster thanks to John D. Rockefeller's vision and drive.
John D Rockefeller -
gained control by creating a monopoly.
gained control of the oil industry by putting his competitors out of business.
made secret deals with the railroad companies.
reduced competition by creating the trust.
Video: Andrew Carnegie (2:11)
Meet Andrew Carnegie and find out how the wealthiest man of his day ended up giving away his vast fortune.
Andrew Carnegie -
Made best and cheapest product.
Tried to control all the steps that went into making steel
Bought the mines went into making steel
Bought the mines that supplied iron ore.
Bought the railroads that carried the ore to his mills.
Video: Andrew Carnegie and the Homestead Strike (4:45)
The famed Industrialist breaks the back of organized workers.