“rags to riches” expanded the steel industry ◦ “carnegie steel company” philanthropist ...

The Rise of Big Business

“Rags to Riches” Expanded the steel

industry◦ “Carnegie Steel Company”

Philanthropist Good management

◦ Products made more cheaply

◦ New techniques/machinery

◦ Attracted talented people

Andrew Carnegie

Vertical Integration◦ Buying out all

suppliers

◦ Controlling all stages of manufacturing

◦ Gives power to

control quality and cost

Horizontal Consolidation◦ Buying out competition

◦ Companies with similar products “merge” through this strategy

Carnegie almost monopolized the steel industry!

Vertical Integration/Horizontal Consolidation

“Only the strong survive”

Laissez Faire- “allow to do”◦ Allow business to be free

Idea that anyone can be rich

Poor were inferior or lazy

Justified millionaires efforts

Social Darwinism & Business

Founder of the Standard Oil Company.

Philanthropist.

Paid his employees low.

Drove competitors out.

Known as a “Robber Baron”

John D. Rockefeller

Attempt by congress to regulate big business – like Monopolies

Stated that forming a trust was illegal

Not very effective

Sherman Antitrust Act