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Opener:
•Let’s do some economics
•Why is coal cheap?
•Why are diamonds expensive?
Why have gas prices risen over the past few years?
How much would you pay for a glass of
lemonade? Explain :
$???
Story time about Mr. Fries’
lemonade stand
In the 1900’s the U.S. government had a
“hands off” approach to the economy. They
believed in a system of pure capitalism.
Capitalism
- Economic system in which supply and demand determine prices.
- Goal of Capitalism?
Laissez-Faire
Government should keep its hands off of businesses
During the early 1900s, some
Americans made their fortunes
through industry
Entrepreneur
A person who takes a risk and starts a company.
Andrew Carnegie
John D. Rockefeller
Monopoly
One business has complete control of
a product or service
Can someone explain the board game Monopoly to
me?
Produced 1/4 of American
steel
“Steel King”
Poor Scottish
immigrant
$25 million per year
Used Bessemer Process – allowed for large skyscrapers to be built
Guess where Carnegie ran
his business…..
One business controls all aspects of production
Philanthropist
Someone who makes charitable donations to benefit human welfare
Carnegie Mellon University
Carnegie Hall
Carnegie Library
Merger: combining many competing firms into one
John D. Rockefeller pioneer of the merger mov’t (Standard Oil
Company)
Trusts A group of separate companies that are placed under the control of a single board
Horizontal
Consolidation
All competing companies are merged into 1 area of business
Rockefeller Institute for Medical Research
University of Chicago
Carnegie and Rockefeller were Captains of Industry because they:
- Increased the supply of goods
- Created hundreds of jobs
- Built museums and donated $
Or were they???????
???
Robber Barons - Stole from the public - Drained natural resources- Controlled government - Drove small business out of business - Paid workers very little - Horrible working conditions
Late 1800s
Gilded: Anything that glitters on the surface but is
rotten underneath
Coined by Mark Twain
Why would this period of time be
known as the Gilded Age?
Much wealth was being created by a few but there was a lot of poverty & bad
working conditions
Is this OK?English
philosopher Herbert Spencer, said yes!
Application of Darwin’s
theory of evolution to
human society
Progress occurs
throughcompetition
in which the weak fall & the strong
thrive