GildedAge Economics Robber Barons or Captains of Industry

Gilded-Age Economics Robber Barons or Captains of Industry

Corporation: a definition § A body of persons granted a charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of its members

Corporation: a brief history § Developed after the Civil War § Developed when the need for large factories exceeded a single person’s financial capabilities § Allowed investors the opportunity to make money on investments without the need to do physical work

Corporation Diagram Shareholders Invest in Corporation Receive a Dividend (profit from Corporation) Board of Directors President Vice President

Corporation: Carnegie model § Vertical consolidation means that all phases of production were controlled by one company MINES SHIPS RRs MILLS Carnegie Steel Co.

Corporation: Rockefeller model § Horizontal consolidation means that one company brings many firms together in the same industry purchased by Rockefeller independent Standard Oil

Corporation: What is wrong? § Horizontal consolidation created a monopoly because there were no competitors § Vertical consolidation created a monopoly because competitors could not produce as cheap

Social Darwinism Idea that society reflects nature § “Only the strong survive” § Rockefeller and Carnegie were simply stronger than competitors thus allowing their businesses to survive §

Gilded Age Economics Robber Barons who eliminated competition or Captains of Industry whose leadership in business led to the emergence of the United States