MONOPOLIES New ways of doing business Objective SWBAT

MONOPOLIES New ways of doing business…. .

Objective: SWBAT identify whether Andrew Carnegie, John D. Rockefeller, and J. P. Morgan are “robber barons” or “captains of industry”. Do Now: Determine whether the statements are True or False and explain your response. A. If people are unsuccessful is because of their own fault. B. There are people that are just better than others.

Economic Philosophy • Laissez-Faire: This was an economic philosophy begun by Adam Smith in his book, Wealth of Nations, that stated that business and the economy would run best with no interference from the government.

Social Philosophy The social philosophy known as “Social Darwinism” supported laissez-faire capitalism. • Social Darwinism stated that success in society was determined by "survival of the fittest. " This interpretation of Charles Darwin's theory caused many to believe that the poor were deceitful and lazy, while the rich were honest and hard-working. This also explained how good businesses thrived while bad ones went bankrupt.

• As the rich became wealthier, and the poor more so, people began to question these philosophies, and some even attacked leading industrialists calling the Robber Barons, while others maintained that they were Captains of Industry.

Robber Baron or Captain of Industry? ? ?

TASK: Complete the graphic organizer and determine whether your tycoon is a “Robber Baron” or a “Captain of Industry” • Use biography. com as your first site, thn, venture the web to find more about your tycoon.

John Rockefeller In 1863 at 23 years old, Rockefeller opened his first oil refinery company in Cleveland, Ohio, with some business partners. By age 25 he buys out his partners 'share and keeps the oil refinery for himself. His oil refinery company became known as the Standard Oil Company. n Recognized the potential of the oil industry n Very hard worker n Spent all profits from the company to improve production n Philanthropy- gave over $500 million to charities • Made deals with the railroads to charge competitors more • Lowers prices to force other companies out of businessthen raised prices • Low pay for workers • Sabotaged competitors • Paid government officials in the Senate

Andrew Carnegie • Andrew Carnegie came to U. S. as a poor immigrant from Scotland in 1848 • Built the Carnegie Steel Corporation through vertical consolidation • Retired a millionaire and gave much of his money to education (Carnegie. Mellon University)

• • • J. P. Morgan Born into a wealthy family Made a huge amount of money by financing railroad companies that were in financial trouble In 1901, he bought Carnegie Steel. He turned that into U. S. Steel, the world's first billion-dollar corporation By the early 1900 s, Morgan controlled almost all of the major industries in the U. S. and had a large stake in the financial and insurance industries The Pierpont Morgan Library in New York was donated by Morgan in 1924.

Monopolists justified their wealth in a variety of ways The “Gospel of Wealth” argued that it is God's will for some men to gain great wealth so they could serve the public Social Darwinism taught that natural competition weeds out the weak and allows the strong to survive The government used laissez faire policies toward big business… …the lack of regulation allowed businesses to become very powerful and exploitive