Unit 5: Big Business

Day 1The Rise of Big Business

Do Now

On your iPads, research this question:

WHO IS ANDREW CARNEGIE?

Looking Forward

• Today: Unit 5: Gilded Age, Big Business

Industrialization

• The United States is rapidly industrializing• Samuel B. Morse: telegraph• Alexander Graham Bell: telephone• Thomas Edison: light bulb• George Westinghouse: air conditioning

• Capitalism: an economic system that is characterized by private ownership of property for profit

• Mass production: process of producing goods in large numbers

• Natural Resources: resources formed by nature that are used to produce goods (coal, iron ore, oil, lumber, water)

Giants of Industrialization

• Industrialization new opportunities and chances to make money (lots of money!)

• Entrepreneurs: people who start businesses

• Railroads• Robber Barons: Wealthy men, crooked morals

• Oil• John D. Rockefeller and Standard Oil• Trust: business arrangement under which a number of

companies unite into one system• Monopoly: Market in which there is only one supplier of a

product and no market competition

Monopolies

• (Selling pencil activity)

Monopolies

• John D. Rockefeller (oil), Andrew Carnegie (steel)• Dictate prices• Eliminate competition• Control the industry

• Vertical Integration• One corporation owns the company that produces the finished

product AND the companies that provide the materials necessary for production

• Rockefeller was determined to “pay nobody a profit”

• Interlocking Directorates: allowed directors of one company to serve as directors for other companies too

• Protective Tariffs: taxed foreign imports, making it easier for US business to sell products at higher prices

Monopoly Political Cartoons

• In the Unit 5 folder, open the “Monopolies Political Cartoon” document

• Spend 5-7 minutes at each station answering the question

Giants of Industrialization

• Andrew Carnegie: philanthropist• “Gospel of Wealth”: responsibility of the

wealthy to put their money to good use serving others

• J.P. Morgan: Finance capitalist• Banker who exerted economic influence

through companies’ stocks and bonds• Personal wealth: $22 billion (3x the estimated

value of all real estate in NYC)

Exit Ticket

1. What is a monopoly?

2. Name two giants of industrialization

3. Explain the name “robber baron”

4. Explain the concept of “vertical integration”

Day 2

Do Now

Looking Forward

Fourth Block

• FIPSE strategy

Urbanization

• People leave their farms and migrate to cities

• The rapid growth of industries (tobacco, iron, textiles) contributes to rapid growth of cities

• Child labor, sweatshops, urban slums, tenements

Immigration

• Eastern US: mostly EuropeanWestern US: mostly Asian

• Industry grows, need for labor increases

• Ellis Island

• Melting pot – cultural pluralism (presence of many different cultures within one society)

Responses to Immigration

• Many US citizens looked on immigrants negatively• Taking jobs away?

• Untrustworthy?

• Refusal to assimilate?

• Nativism: opposition to immigration• Violence

• Legal restrictions

• Ethnic Ghettos: neighborhoods where immigrants from a certain region or country lived together due to common culture, language and heritage

Immigration Game

Political Machines

• Improved police and fire departments, transportation systems, public services, sewage systems, etc.

• Government = more powerful

• Political machine: an unofficial entity meant to keep a certain party or group in power• Graft: the use of political power

to gain wealth

• Used immigrants to secure votes in exchange for political favors, financial health and promises of aid

• Boss Tweed and Tammany Hall

Rise of Labor Unions• Sherman Anti-Trust Law:

monopolies are illegal

• Union: organizations of workers formed to protect the interests of its members• Pursued social and labor

reform

• Used strikes, boycotts and collective bargaining

• Immigrants and African Americans were recruited

• South Carolina: “right to work” (little public sympathy for unions)

Employer Response to Unions

• HATED Unions

• Scabs: replacement workers

• Injunctions: court orders that forbad strikes because they violated the law or threatened public interest

Remaining Class Time / Homework

MAJOR STRIKES AND CONFRONTATIONS

Complete the readings and the graphic organizer

Day 3

Do Now

What are three things you learned from the Avery Institute?

Looking Forward

Tonight’s Homework: NONE!

Thank You Notes

Dear Ms. Harrell-Roye,

1. Why you liked spending the morning at the Avery Institute

2. 1-2 things you learned at the Avery Institute

3. Any remaining questions you have

Sincerely,

Your First Name ONLY

Railroads• Crucial to western expansion

• Allowed farmers and ranchers to ship products east

• Rapid population growth

• Development of Mid-Western cities

• 1862: Transcontinental Railroad• Union Pacific (Eastern

company)

• Central Pacific (Western company)

• 1:25

Impact on Native Americans

• Buffalo

• Plains Indians cannot continue their way of life

• Forced to relocate to reservations (parcels of land set aside by the federal government for the Native Americans)

• Often tied to the discover of gold or a need for land

• 22:00

CLASH• Sometimes, Native Americans

chose to resist white settlement rather than accept being moved off their land

• 1890: Wounded Knee

• 1887: Dawes Act• Abolished tribal organizations

• Land divided into family holdings

• Did not match cultural habits

• Native American children: boarding

• Poverty, cultural decline

Scholastic Magazine

White Farmers• 1870s-1880s: very expensive to be a

farmer!

• Mechanization: makes farming easier, increase in production

• Overproduction (too many agricultural products) causes farm prices to drop• Subsidies: money paid to cover losses

due to over-production

• Greenbacks: paper money

• Interstate Commerce Act: kept railroad prices down

• Grange: local farmers pool their resources to purchase new machinery

Populism and the Election of 1896

• Populism: embraced what farmers wanted• Supported greenbacks

• Supported increased government regulation of business

• Election of 1896• Silver standard

• Bimetallism (backing the dollar with silver)

• William Jennings Bryan: “Cross of Gold”

• Populism fades