Big Business and LaborUnit 5- A New Industrial Age

I. Big Business began to control the U.S economy and industryA. Andrew Carnegie- Made a fortune

($298B) in steel

1. Vertical Integration- Buying a company’s suppliers

2. Horizontal Integration- Buying a company’s competition

* Carnegie was able to control almost the entire steel industry

B. John D. Rockefeller- Made fortune ($318B) from Standard Oil- Kept oil prices low (by paying very

low wages) to put competition out of business, then jacked up the prices

C. Both were philanthropists- Rich people that gave a lot of money away to charities, foundations, and the poor

Vertical Integration

NIKE

Leather Co.

Thread Co.

Rubber Co.

Trucking Co.

Shoelace Co.

Sneaker Stores

Horizontal Integration

Puma NIKE

Adidas ReebokAsicsConverse

New Balance

D. Social Darwinism- Came from Charles Darwin, some people are born smart and successful and some are not (biology)- People thought that government

should not control business

E. Some saw these men as Captains of Industry and others as “Robber Barons”

F. Sherman Antitrust Act (1890)- Made it illegal for companies to form either:Trust- A large company that controls

many othersMonopoly- A company that controls

the entire market of a product

II. Labor Unions- groups of workers that fight for their rights

Fought for:1. Better pay2. Safer working conditions3. Vacation time4. Sick leave5. Worker’s compensation (injuries on

the job)6. Less exploitation

Unions negotiated with company owners for these things

Unions would often strike to get what they wanted