Ch 6 Flashcards
How did john D Rockefeller earn his money ?
Established standard oil company
How did Andrew Carnegie earn his money
Raised from rags to riches. Bought a stock for steel and became a model of American success stories
Was monopoly good or bad? Why?
Neutral because it was good for the people who owned the company, but bad for the consumers.
Monopoly ripped off consumers&workers while the extra profit went to charity
What was the Sherman antitrust act?
Act that made it illegal to form a trust that interfered with free trade between states or with other countries, did not clearly define trust.
Vertical integration
What did Carnegie do relating to this?
Companies taking over its suppliers, distributors, and transportation systems to gain total control over the quality and cost of its product
Carnegie controlled everything that was steel. This increased his profit & made him the only person who could make steel
Horizontal integration
Merging of companies that make similar products. Buy out all of your competition
We are the only country with copyright & anti monopoly
Social darwinism
Only the best businesses will stay open
Robber barons
A person that steals on one side, but on the other they give a lot to charity. Carnegie & Rockefeller were robber barons.
Used monopoly to under pay their employees but give money to charity.
Employees would work in dangerous conditions & were not treated equally.
Result of robber barons like Carnegie & Rockefeller ?
Workers organized to create a union. Would elect a president who would listen & if management could not agree then they would vote on & COULD GO ON STRIKE
Result - strike hurt management (loose money & workers) so they would agree and sign a contract
Steel workers union
Steel workers went on strike and formed a union so they could sue management
What 2 things are monopolies ?
Horizontal & vertical integration
What did railroads do?
Brought west ward expansion. (Adventure)
Made time zones.
United nation.
Transportation easier
Resources that played crucial roles in industrialization
Oil, coal, & iron ore-> steel
What did Edwin l drake do?
Used a steam engine to drill oil from the earth
How did the Bessemer process allow better use of the iron ore ?
It made impurities like carbon go away/ become removed
