Robber Barons and the Economy Flashcards
who was Vanderbilt and what did he do
son inherited fathers approx $100 mil fortune (invested in railroads prior ) and handled strikes cruelly
give 4 effects on the growth of railways in the economy
- sellers found new markets
- more interconnected society
- stimulated more ppl to enter markets; inc demand meant inc business opportunity
- growth of industries eg oil and steel
define robber baron
industrial capitalists who benefitted and exploited the laissez fair policy
who was Carnegie and what did he do
bought all the processes needed for steel making (smelting,rejoining, rolling) to make cheaper steel from iron and found markets in cities eg machinery and pipes also a philanthropist
what is vertical integration
when company expands business into production progress to be manufacturer supplier and distributor
who was Rockefeller and what did he do
bought out other oil companies secretly to create illusion of competition/choice and by 1880s he controlled 85% of all US oil production
who was JP Morgan and what did he do
inherited 12 mil and became major force behind US Steel Corporation and created monopolies so it was difficult for businesses to compete
was it beneficial to have laissez faire and have individuals controlling markets and industries ? YES(4)
fast economic growth
provides jobs
improved prices
creates infrastructure
was it beneficial to have laissez faire and have individuals controlling markets and industries ? NO (4)
control over prices and bad quality
less competition and innovation
no workers rights
unstable economy
what were the 4 main impacts of industrialisation in the gilded age
1873 Depression
Urbanisation
Living Conditions Worsened
Fall in Agriculture
give a statistic showing depression as an impact of industrialisation
1/4 labourers in New York out of work in 1873-4 winter
give a statistic showing urbanisation as an impact of industrialisation
Chicago population 30,000 in 1850!/‘d 1 mil on 1890
describe bad living conditions as an impact of industrialisation
rapid influx of workers led to hasty construction and poor quality housing ; overcrowding and pollution in slums
give a statistic showing depression as an impact of industrialisation
1866 bushel of wheat = $1.45
1869 0.76
