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Robber Barons vs . Captains of Industry. -Pros and Cons of Industrialists -Treatment of workers -Antitrust Movement. Captains of Industry. If you work hard you can be rich too!. I helped make life easier for you. We made this country an empire. I created jobs. - PowerPoint PPT Presentation
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Robber Barons vs. Captains of Industry
-Pros and Cons of Industrialists-Treatment of workers-Antitrust Movement
Captains of Industry
I created jobs
I helped make life easier for you
We make all those nice things you
like!
We made this country an
empireI provide
affordable products
If you work hard you
can be rich too!
Robber Barons
I gamble with the
taxpayers money
You work for pennies while I make millions
The people you vote for work for meI get
government bailouts…
Corporations are people and have rights---
right?
We started corporations
Opposing View Points
• Captains of Industry– Created Jobs– Increased production– Provided cheap
products– Gave money back to the
community– Helped build the nation
• Robber Barons– Exploited workers– Corrupted the
government– Greedy– Offered bribes for
political favors– Above the law
Corporations are people????
• A corporation: – Is owned by many
people (stockholders)– But treated as a single
entity– It can
• Own property• Pay taxes• Sue or be sued• Make contracts
Corporations• Stocks– Shares of a corporations
• Share risk and reward
• Stockholder– People who own a corporations via
stocks• Buying/Selling STOCKS allows
corporations to expand/increase– Production– Employees– Factory– Research & Development
Corporations
• More money brings– New technologies– More workers– New machines– Bigger factories
• Economies of Scale– Corporation can make
more goods at a lower cost….passing the saving on to you
CostsFixed• Money that you have
to pay regardless if your business goes or not…– Loans– Mortgages– Taxes– Rent
Operating• Money used to make your
business GO!!!– Water– Electricity– Employees– Shipping– Wages– Materials
POOLS• An affiliation of two or
more people/companies formed for the purpose of attempting to manipulate a products price and/or volume.
– = gas station
$
$
$
$
$
Vertical Integration
• Corporation owns all of the companies which it depends on to improve profits. Cut out the profit margins of “middle man” companies.
• Ex. McDonalds
Horizontal Integration
• Combining or merging LIKE companies into one LARGE company.
• Ex…Blockbuster Video
Monopoly• Exclusive control of a product or service in a particular market that makes it possible to manipulate prices.
TRUSTS
• an organization of businesses designed to operate like a monopoly to circumvent anti-monopoly laws
BIG OIL
Trustee 1 Joe’s Oil
Trustee 2Bill’s Oil
Trustee 3Juan’s Oil
$$$ $$$
Holding Companies• Corporation that
doesn’t really do anything except own a significant amount of stock in real companies.
• Board of Directors• CEOs
Cutting Costs• Skilled Workers replaced by
Unskilled machine operators.– Production cost lower
• Deflation = profits• Value of $ rises• Prices drop• Workers wage has more buying
power
• Terrible working conditions• Unsafe• Unsanitary• Long hours• Low wages
$10 a day
$3 a day
Workers Unite– TRADE UNIONS- Limited
to Skilled Laborers• Iron workers• Shoemakers
– Industrial Unions- Common Laborers and craft Workers• Carpenters• Painters• artisans
Workers Organize
Knights of Labor – formed in 1869 as the first labor
union in the nation.
Goal #1:Shorter work day
Goal #2:End child labor
Goal #4:Worker owned
factories
Goal #3:Equal pay for men
and women
Strikes
boycotts
arbitration
Blacklisted– Anyone that tried to start a
union considered a troublemaker.
– Could not get a job anywhere
– Had to • Move• Change Name • Change Identity
LOCKOUT
• COMPANY ANSWER TO STRIKE– NO PAY– NO WORK– HIRE REPLACEMENT
WORKERS• “STRIKE BREAKERS”
– SCABS
STRIKES• Workers walk off the
job & protest working conditions
• Early Strikes resulted in Violent Riots
• Government normally sided with Business because they shared similar interest in companies making a profit
• Pullman Strikes• Great Rail Road Strike• Haymarket Riots
• American Federation of Labor (AFL)•umbrella organization made up of many different trade unions.•Led by Samuel Gompers•Unions stay out of Politics•Closed Shops- Companies only hire Union Workers
A F L
Screen Actors Guild
American Postal Workers Union
American Federation of Teachers
United Steel Workers of America
United Farm Workers of America
International Association of Firefighters
Unions of the AFL - CIO
Justifications for Industrialists’ Extreme Wealth
• Social Darwinism• Herbert Spencer
– Based on Charles Darwin’s theory of evolution
– Those who are rich are more fit, than those who are poor
– Attempted to use science to explain social classes
• Gospel of Wealth• Andrew Carnegie
– God gave wealth to the most capable people
– It is the duty of the wealthy to give money to help the poor • Carnegie gave millions of
dollars away to establish libraries, colleges, and museums
Captains of Industry
• Andrew Carnegie- US Steel• J. P. Morgan- Banking, and Insurance
Companies• John Rockefeller – Standard Oil• Cornelius Vanderbilt- Rail Roads