6.1 & 6.2 ppt Qs - mcdonough & #1-3 Video
What strategies led to better control of production, and reduced costs?
horizontal integration and vertical integration
How is big business good for the nation?
it allows for product innovations
What concerns did people have about industrialization?
its impact on the environment
What did corporations work to do?
maximize profits
What strategies forced competitors out of business?
monopolies and cartels
Why did they call him "The Commodore?"
They called him "The Commodore" because *he was so synonymous with shipping*
Who was the business leader of railroad industry?
Cornelius Vanderbilt
Who invented the *light bulb*?
Thomas *Edison*
According to Mr. Trump, "The people that really succeed in life are those who don't...
*QUIT*."
According to advertising mogul Donny Deutsch, the Gilded Age entrepreneurs found a great motivator in their own
*failure*.
The objective of the super rich is often not to make money, it is to... win all the time, (not sometimes all the time).
*win all the time*, (not sometimes all the time).
What are 3 ways industrialization changed how businesses were run?
1. combined funds and resources 2. corporations protected investors 3. operate in different regions
What are 4 factors that led to increased industrial growth during the Civil War and laid the groundwork for postwar prosperity?
1. supplies 2. railroads 3.immigration 4. natural resources
What are 2 ways in which railroads changed America?
1. they encouraged innovation 2. they lead to the growth of industry and mass production
The partnership between Carnegie and Henry Frick worked very well. According to Dallas Mavericks owner Mark Cuban, what was good about it?
According to Dallas Maverick's owner Mark Cuban, the partnership between Carnegie and Henry Frick worked very well because *they were complete opposite & different from each other*
With the railroad market destroyed, Carnegie was in bad straits. What industry did he turn to next?
After the railroad market got destroyed, Carnegie turned to the industry of *structural steel, skyscrapers*
Who was the business leader of the steel industry?
Andrew Carnegie
Carnegie met Tom Scott, his mentor, when young Andrew started working at age 12. Why did he start working so young?
Andrew Carnegie started working so young, at the age of 12, because *the family had no way of surviving without him working*
Why did Carnegie begin working with steel?
Carnegie began working with steel because *it is the strongest material ever made & no one has ever used it before for something as big as a bridge*
Once the bridge was completed, the people of St. Louis were afraid to use it - they had never seen a steel bridge. How did Carnegie solve this problem?
Carnegie solved the problem of the fear of using the bridge by having an *elephant walk on the bridge & the people would follow after it*
What effect did closing the bridge have on the New York Central Railroad, and how did Vanderbilt profit from it?
Closing the bridge caused every other railroad to be shut out of NYC, shutting the bridge *left millions of pounds of cargo unable to reach the rest of the country* & slowly bleeds his competitors dry. This caused the *rivals to sell off their shares on Wall Street*; Vanderbilt profited by *buying all their stocks*
Who invented the *sewing machine*?
Elias H*(s)ow*e
Who invented the *safety elevator*?
Elisha *Otis*
Frick built the South Fork Fishing and Hunting Club around the private lake held back by the South Fork dam. Why did Frick decide to lower the dam, even though it made it weaker?
Even though it made it weaker, Frick decided to lower the dam because *he wanted the road on the dam to be wider*
How did industrialization and new technology affect the economy and society?
Expanding business and industrialization led to the second industrial revolution
How did Gould & Fisk prevent Vanderbilt's takeover (and get rich in the process)?
Gould & Fisk prevented Vanderbilt's takeover (and get rich in the process) by *printing new shares of stock, each share they print dilutes Vanderbilt's stake in the company*, they print over 100,000. Plan was aka Watering Down Stock
Who invented the *steam boiler*?
Granville *Woods*
What oversaw railroad operations?
ICC
Who was the business leader of the oil industry?
John D. Rockefeller
John D. Rockefeller had helped support his family because of his troubled father. What was the occupation of William A. Rockefeller, John's father?
John's father's, William A. Rockefeller, occupation is being a *conman*
John D. Rockefeller was en route to a meeting with Vanderbilt. What happened on the trip there? How did that event affect Rockefeller?
On a trip to meeting Vanderbilt, *Rockefeller narrowly missed the train that would have carried him to his certain death*. ; Rockefeller became convinced that *God has spared him for a reason*. He's now a man of destiny.
How did Rockefeller attempt to solve the problem created by Vanderbilt?
Rockefeller attempted to solve the problem created by Vanderbilt by trying to *building a pipeline large enough to transport oil* across the country
Why did Rockefeller choose the name "Standard Oil?" What did Rockefeller do with the profits from his deal with both major railroads?
Rockefeller chose the name "Standard Oil" because it will be the *only company industry to guarantee a uniform quality of kerosene* ; With the profits from his deal with both major railroads, Rockefeller *began to buy out his competitors*
Mark Cuban said, "Wherever there's change, wherever there's uncertainty, there's opportunity." How did Rockefeller demonstrate this principle?
Rockefeller demonstrated the principle, "Wherever there's change, wherever there's uncertainty, there's opportunity,"(from Mark Cuban) by *whenever things went wrong, Rockefeller was there to adjust - and make money*.
Rockefeller didn't want to take the risk from finding oil wells. He avoided it by taking over another step in the process. What was that step?
Rockefeller took over the *refining process*, building his first refinery
Most Americans were really struggling, but Rockefeller was still doing quite well - even buying up struggling companies. How did Rockefeller view himself here?
Rockefeller viewed himself *as survival of the fittest* - and Rockefeller was the fittest of them all.
How did Rockefeller's actions affect the railroads? Once the railroad stock crashed, they had to close the stock market. What did this "bubble burst" mean for the average American?
Rockefeller's actions affected the railroads by *costing them cargo, stocks plummet & costing them money*. ; The "bubble burst" for the average American meant that *⅓ of the country's 360 railroad companies have gone bankrupt by the time the Panic of 1873* is through, triggering the first full blown national depression.
Rockefeller's great-grandson gives him credit for being such a good businessman. For what does his great-grandson NOT give him credit?
Rockefeller's great-grandson did not give him credit for *the way that he became that powerful*
Who invented the *telegraph*?
Samuel *Morse*
Scott realized he needed to diversify or lose. What did he begin doing? Scott ran the only railroad between Pittsburgh and New York - and therefore the only way for Rockefeller to transport his oil. What did Rockefeller do about this problem, and what was the result?
Scott began to break into the oil business *by building a pipeline of his own*. ; In order to deal with the problem, Rockefeller *negotiated that ⅔ of the oil comes from him or he will take it to the other railroads. The result was a declining from Scott*.
What was passed by the Senate in 1890 and outlawed trusts that operated "in restraint of trade or commerce among the several states"?
Sherman Antitrust Act
What belief states that those who had wealth were the most "fit"?
Social Darwinism
Who believed government should stay out of private business?
Social Darwinists
Vanderbilt wanted to advertise his power as a railroad magnate. What enormous New York building did he help build?
The enormous NY building that Vanderbilt helped build was *the Grand Central Depot* (the Harlem, the Hudson, and the Central railroads)
What improvement did Bessemer make to the manufacture of steel?
The improvement that Bessemer made to the manufacture of steel was *by creating a device that cuts the time to manufacture a single steel rail from 2 weeks to 15 minutes*
As far as Carnegie is concerned, one man drove Tom Scott to his grave. Who did Carnegie blame?
The man that Carnegie blames for driving Tom Scott to the grave was *John D. Rockefeller*
Why did the people of Johnstown ignore the warning to evacuate?
The people of Johnstown ignored the warning to evacuate because *they've seen the same warning before*
What was the problem with Rockefeller's deal with Cornelius Vanderbilt?
The problem with Rockefeller's deal with Cornelius Vanderbilt was *he was only presently capable of producing less than of half that*.
There was one thing especially difficult about westward expansion - and Scott challenged Carnegie to solve the problem for his business. What was that problem?
The problem with the challenge that Scott gave to Carnegie was that *Carnegie had no idea how to build it & how to get across the MS River*
Vanderbilt pioneered the technique of rapidly buying a large amount of another company's stock.
This is called a *Vintage Vanderbilt Mura* OR a *hostile takeover*.
In 1866, Vanderbilt was especially struggling. What recent loss affected him so deeply?
Vanderbilt *lost his son George* in 1866, which affected him deeply
Vanderbilt's rivals stopped believing he was a strong business adversary. What did Vanderbilt do to convince them he was still powerful?
Vanderbilt convinced his rivals that he was still powerful *by closing the Albany bridge*(the gateway to NY) so his rivals can't pass
Vanderbilt knew that a good entrepreneur finds something that people lack and gives it to them. What product did Vanderbilt decide to sell?
Vanderbilt decided to sell *kerosene oil*
Rockefeller created America's first monopoly. Vanderbilt realized that Rockefeller was too powerful and decided to "take him down." How did Vanderbilt try to accomplish this?
Vanderbilt tried taking Rockefeller down by *getting the railroads to work together*(working with his enemy, Thomas Scott)
Soon after acquiring his first ferry, what reputation did Vanderbilt earn?
Vanderbilt's reputation was earned as a *cutthroat businessman* willing to use any means necessary to get ahead.
When Carnegie built his steel mill, what was wrong with his timing?
When Carnegie built his steel mill, his timing was wrong/off because *the railroads are struggling to stay profitable because there's so many of them*
What problems did Carnegie run into with his bridge?
With his bridge, Carnegie ran into certain problems such as *being 2 years behind schedule & that expenses are mounting*
What was created in 1872 to protect lands?
Yellowstone National Park
What did immigrants to the US provide?
a willing workforce to industry
What did America exporting grain, steel, and textiles in huge amounts lead to it becoming?
a world economic power
who served the nation and lowered the prices of goods?
captains of industry
What did Morse's telegraph give rise to?
communications revolution
Who fueled industrialization and helped spur innovation in the late 1800s?
entrepreneurs
What did Americans who worried about the methods of industrialists call for?
federal regulation of business practices
What did the ICC and the Sherman Antitrust Act begin a trend toward?
government limits on corporate power
How did big business shape the American economy in the late 1800s and early 1900s?
growth of big business in the late 1800s made US one of the most economically powerful countries in the modern world
Other than the light bulb, what other invention did Thomas Edison develop?
phonograph
What did the expansion of railroads lead to?
physical and economic growth of cities
who swindled the poor and drove small businesses under?
robber barons
Why did many Americans move to cities?
to find work