Unit 9: Industrial Age and Big business
What was Laissez-faire and why was it supported?
"Hands off", it was supported because the government is going to be keeping their hands off of the economy.
Philanthropist
A person who seeks to promote the welfare of others, especially by the generous donation of money to good causes.
Gospel of Wealth/ Carnegie
An article written by Andrew Carnegie that describes the responsibility of philanthropy by the newer upper class of self-made rich.
capitalism
An economic and political view in which a country's trade and industry are controlled by private owners for profit. Encourages the growth of industries and big businesses
Robber Baron
Business individuals who dominate their industries using unfair business practices.
laissez faire
Business philosophy that the government should not interfere with business activities.
What business strategies are used during the Industrial Revolution and how were they used?
Buying out the competition, and buying all business in a particular industry. Vertical and Horizontal growth.
horizontal integration
Buying up all the businesses in a particular industry.
Compare and Contrast Andrew Carnegie and John D. Rockefeller.
Carnegie went from rags to riches, was a horizontal businessman, U.S. steel. Rockefeller was a vertical businessman and was involved in the oil business.
Why might Rockefeller and Carnegie be considered Captains of Industry or Robber Barons?
Carnegie- company dominated the American steel industry. He gave 90% of his fortune to philanthropic causes. Rockefeller- Established the standard oil company, the greatest, wisest, and meanest monopoly known in history
List and explain the cause and effects of the Industrial Revolution.
Causes- population increase, demand in products go up, trade expands, improvements of technology. Effects- mass production of goods, transportation improves, increase in depending on the growth of cities, increase immigration, rise of racism.
What happened to the South during the Industrial Age?
Due to their mild weather, rich soil, and long growing seasons, the south had a plantation economy.
Mass production
Efficient production of large numbers of identical goods.
The invention of the railroad and vehicles improved transportation of goods and people.
Explain how inventions changed life in America.
Subsidies
Government payment to encourage or protect a certain economic activity or industry.
What was the economic impact of the Transcontinental Railroad?
It stimulated industrial growth, created jobs,made it easier to ship goods.
Explain the benefits and negative impacts of the Railroad
Negatives of the railroads are misuse \of land in the west, price fixing occurs, low wages for workers, gave control to a few wealthy people, and corruption developed. Some benefits are that it created jobs, stimulated industrial growth, promoted western settlement, promoted transportation, cities grew, and trade increased.
How did natural resources affect progress in the US?
Oil is refined into fuel, kerosine oil and gasoline used for lamp. Coal used in industries and mining.
Why did the standard of living increase during the late 1800's?
People were eating better and practicing better hygiene. Medical discoveries eliminated some diseases. Sanitation improved.
Standard of Living
Quality of life based on ownership of a person's necessities and wants that make life easier.
How did the Railroad and Standard time unify America?
Railroads- They were able to travel all over the US faster and safer than on horse or wagon. The poor chinese and others built the railroads.
Entrepreneurship
Risk-taking individual who is seeking to make a profit.
How was Social Darwinism used to explain the success of the first American millionaires?
Social darwinism talks about survival of the fittest and how people who give back to society are the fittest, otherwise known as the rich.
social darwinism
The belief that some individuals or species naturally flourish and others will naturally die out.
Why did industrial growth occur in the U.S after the Civil War?
There was a Boom period in the economy, standard of living increased.
How did Carnegie and Rockefeller gain control of their industries?
They gained control by buying out the competition and by buying all of the business in a single industry.
vertical integration
a company taking over its suppliers and distributors to gain total control of its product
Scabs
a person who refuses to strike or join a labor union, or who takes over the job responsibilities of a striking worker.
stocks
certificate to show ownership in a corporation
corporation
companies that sell shares of ownership called stocks
invention- the action of inventing something, typically a process or device. Innovations- introduce something new or different patent- the sole right to exclude others from making, using, or selling an invention.
difference between inventions, innovations, and patent
trust
legal combination of corporations or companies organized to hinder or stop competition
rebates
partial refund of the original price of a product
monopoly
sole economic control of a business or product to drive out competition
pooling
the combining of businesses in order to make their practices or efforts more secure.
consolidation
when individuals combined their money in a fund hoping to increase the value of a stock
