Growth Of Industry Notes

THE GROWTH OF

INDUSTRY

Who are the 5 richest people in the world today? In what industry did they make their fortune?

What do you notice in this image?

What does this image tell us about society

during the Gilded Age?

THE GILDED AGE

❖ Name comes from the title of an

1873 Mark Twain book
➢

Referred to the “superficial glitter”
of the new wealth that developed
in the late 1800s

➢

Defined by a belief in limited
government, laissez-faire
economics, & Social Darwinism

➢

Dominated by a group of
businessmen whose massive wealth
gave them considerable political
power

Directions: Use the text box to answer the
following question:

●Why do some people refer to this period
as the Gilded Age?

Multiple Choice

From this image, who is in control of the US lawmakers.

• Large monopolies

• small private business

• political machines

• labor unions

Multiple Choice

theory that government should not interfere in the operation of the free market

• Cul-de-sac
• Laissez-Faire
• Fleur de Lis
• Achtung

Multiple Choice

What is the main idea of this cartoon from the 1800s?

• Workers are gaining power over the industrialists.

• Industrialists are dependent on their workers.

• Most Americans support the labor movement.

• Workers are working hard to fill the pockets of the industrialists.

Multiple Choice

What does this image say about the control of Stand Oil?

• Standard Oil is a monster trying to control the entire USA

• Standard Oil is trying to save government from political bosses

• Standard Oil is trying to keep government on the right track to benefit laborers

• Stand Oil had control over many aspects of government

Multiple Choice

Which group believed in survival of the fittest and people were naturally selected to succeed?

• social darwinist
• political bosses
• nativist
• political machines

Multiple Choice

What does the term 'gilded' mean?

• made of gold

• covered in a thin coat of gold

• poor

• made of steel

CORNELIUS VANDERBILT

Learn more about Cornelius Vanderbilt.

Directions: Use the text box to answer the
following questions:

●In which industries did Vanderbilt make
his fortune?

●What personal characteristics
contributed to Vanderbilt’s success?

❖

Born in Staten Island, New York
➢

Started his own ferry service at the age of 16

➢

Grew his business to include
steamboats first in the New York region & later through Central America during the1830s – 1850s

➢

Reinvested in railroads after the Civil War

➢

Directed the construction of Grand Central Station

➢

Known for being fiercely competitive & ruthless

➢

Worth over $200 billion in today’s
money

■Donated $1 million to help start
Vanderbilt University in Nashville, TN

Multiple Choice

The railroad industry ______________ after the Civil War.

• decreased
• increased

Multiple Choice

Which of the following men was largely responsible for initial large scale investments that helped railroads grow west of the Mississippi River?

• Jay Gould
• Cornelius Vanderbilt
• Thomas Durant
• Leland Stanford

Multiple Choice

Cornelius Vanderbilt made his fortune in...

• flight
• oil
• railroads
• automobiles

Multiple Choice

Who is responsible for linking the railroads in the Northeast?

• Thomas Edison

• Elisha Otis

• George Eastman

• Cornelius Vanderbilt

CORNELIUS VANDERBILT

JOHN D. ROCKEFELLER

Directions: Use the text box to answer the
following questions:

●In which industry did Rockefeller make
his fortune?

●Is a monopoly good or bad for the
American economy? Explain.

❖

Grew up in Cleveland, OH

❖

Founded Standard Oil in 1870
➢

Shipped so much product that he was
able to demand rebates from the
railroads

➢

Allowed him to crush his competitors in a
process known as horizontal integration

➢

Soon controlled 90% of the nation’s oil
supply, creating a monopoly in the field

➢

Controlled a fortune equal to $350
billion in today’s money

■Donated more than $500 million
dollars to various educational,
religious, & scientific causes including
the University of Chicago

Learn more about John D. Rockefeller.

JOHN D. ROCKEFELLER

What do you notice in this image?

Multiple Choice

Which industrialist established the Standard Oil Company?

• Andrew Carnegie

• Cornelious Vanderbilt

• John D. Rockefeller

• J.P. Morgan

Multiple Choice

Rockefeller had a _______, because he worked with several oil companies to control the industry.

• Trust
• Corporation
• Reservation
• Pogrom

ANDREW CARNEGIE

Learn more about Andrew Carnegie.

Directions: Use the text box to answer the
following questions:

●In which industry did Carnegie make his
fortune?

●What is vertical integration? How is it
different from horizontal integration?

❖

Born in Scotland & immigrated to
the U.S. as a teenager

❖

Founded Carnegie Steel
➢

Practiced both horizontal &
vertical integration

➢

Saw himself as a champion of the
working man in spite of his role in
the Homestead Strike in 1892

➢

Sold his company to J.P. Morgan in
1901

➢

Worth over $300 billion in today’s
money

■Wrote A Gospel of Wealth

■Gave away the bulk of his fortune
through the establishment of public
libraries, the Carnegie Foundation, &
Carnegie Mellon University

Multiple Choice

How did Andrew Carnegie become wealthy?

• Through investments in the steel industry and the establishment of Carnegie Steel Company.

• Through winning the lottery.

• By inheriting a large fortune from his family.

• Through successful real estate investments.

Multiple Choice

How did Andrew Carnegie impact the steel industry?

• He invented a new type of steel

• He introduced automation in steel production

• He formed a monopoly in the steel industry

• He implemented the Bessemer process and vertically integrated his steel company.

ANDREW CARNEGIE

J.P. MORGAN

❖

Born into a wealthy Connecticut
family

❖

Built one of the most powerful
banking houses in the world
➢

Participated in the mergers of a
number of companies

❖

Loaned money to the US Treasury
during the Panic of 1893

❖

Orchestrated an end to the Panic
of 1907

❖

Critics accused him of
manipulating the financial system
for his own gain

Directions: Use the text box to answer the
following questions:

●In which industry did Morgan make his
fortune?

●Do you think men like Vanderbilt,
Rockefeller, Carnegie, & Morgan were
captains of industry or robber barons?
Explain.

Learn more about J.P. Morgan.

J.P. MORGAN

LAISSEZ FAIRE ECONOMICS

❖

Men like Rockefeller explained
their extraordinary success by
pointing to their hard work,
shrewd investments, and innovative
business practices.
➢

Others looked to Social Darwinism
for a scientific answer

■Claimed that humans who were the
most fit became the most successful

■ “...the number of poor who are to
be sympathized with is very small.
To sympathize with a man whom
God has punished for his sins ... is to
do wrong. ... Let us remember there
is not a poor person in the United
States who was not made poor by
his own shortcomings...”

■Favored Laissez Faire Economics,
opposing minimum wages, maximum
working hours, or safety regulations
in the workplace

Directions: Use the text box to answer the
following questions:

●How did laissez faire economics benefit
men such as Rockefeller & Carnegie?

Learn more about laissez faire economics.