Andrew Carnegie
17
Andrew Carnegie •1899 Carnegie Steel –Improved quality and cut costs
description
Andrew Carnegie. 1899 Carnegie Steel Improved quality and cut costs. John Rockefeller. Standard Oil Trust Employees paid low wages Drove out competitors with low oil prices When he controlled 90% of the oil, he then hiked up the prices. Vertical Integration. Bought out all his suppliers - PowerPoint PPT Presentation
Transcript of Andrew Carnegie
Andrew Carnegie• 1899 Carnegie Steel–Improved quality and cut
costs
John Rockefeller• Standard Oil Trust• Employees paid low wages• Drove out competitors with low
oil prices• When he controlled 90% of the
oil, he then hiked up the prices
Vertical Integration
–Bought out all his suppliers–Coal and iron mines → ore
freighters → railroad lines–Controlled the entire
manufacturing process
DEPOSITS
REFINING
FOR SALE TO CONSUMERS
DISTRIBUTION
TRANSPORTING
DRILLING AND EXTRACTING CRUDE OIL
Horizontal Consolidation–Tried to buy out competing
steel producers–When he sold his company in
1901, it was producing 80% of the nation’s steel!
Social Darwinism and Big Business
• Natural selection of weeding out the weaker individuals and enabling the strong to survive • Rich deserve their wealth and
poor deserve to be in poverty
Robber Barons• Ruthless business men who stop
at nothing to achieve wealth• Accused of exploiting workers,
unfair labor practices, horrible working conditions
Captain of Industry• Leaders who transformed the
American economy with their business skills• Philanthropic• (charity work)
Holding Company• Corporation that does nothing but
buy out the stock of other companies• Creates monopolies• Example: JP Morgan bought
Carnegie Steel in 1901 and combined it with his U.S. Steel
