Capitalism: Economic system based on private ownership of property & companies. • Goal= profit

Take A Stand (Agree or Disagree)

1. Private Property is essential to the American way of life.

2. Capitalism helps make society more successful.

3. Competition between companies is beneficial for both workers & consumers.

4. In theory, Capitalism is great; but greed sometimes causes corruption & harm

Read the following quotes by Andrew Carnegie.

What message was Carnegie trying to make in these quotes, & do you agree with this message? Explain.

1)“I started life as a poor man and I wish to end it that way.”

2)“The man who dies thus rich, dies disgraced.”

Examples: railroads, skyscrapers, nails, pins

Example: The Steel Industry

1850’s – Bessemer Process=steel produced cheaply.

• Therefore, the steel industry grew rapidly.

Henry Bessemer

Bessemer converter

Vertical Integration • Entire production

process is controlled by one company.

Raw materials - iron

Melting

Refining

Casting

Finished product – steel slabs

· Poor Scottish immigrant: Andrew Carnegie became the “King of Steel,” dominating U.S. steel industry.

Carnegie’s residence

· Carnegie reportedly gave $350 million of his $400 million fortune to charities, including $60 million to build libraries.

• Mathematically that gives Carnegie $50 million to live off of.

Harper's Weekly April 11, 1903

Andrew Carnegie in his “Great Double Role”

Caption reads: "Forty-Millionaire Carnegie in his Great Double Role. As the tight-fisted employer he reduces wages that he may play philanthropist and give away libraries, etc.”

Andrew Carnegie and the Homestead Strike

Is it ok to lower wages if you give the majority of your profits to charity?

• Standard Oil dominated oil industry.

• Ran his business aggressively.

• His donations made for medical research.

John D. Rockefeller

• Built his wealth in shipping and railroads.

• Provided the “gift” that found Vanderbilt University - named in his honor.

Cornelius Vanderbilt

• Designed the Pullman sleeping car

• Founded a company town

• Hired African-Americans• Lowered wages &

increased work hours

George Pullman

Industry = Need for laborers• 6 Day work week

• > $500 Annual Pay

• Child Labor• 12 - 16 hour days

Dangerous working

conditions

The Pullman Strike

Slums of the Working Class

Health Hazards

Disease

Racism

Should industrialists like Vanderbilt, Carnegie, and Rockefeller be viewed as

“Robber Barons” or “Captains of Industry”?