SSUSH#11 Big Business

Vanderbilt, Rockefeller, Carnegie, Morgan, Edison
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Railroad Industry
faster, more practical means of transporting goods, lowered production costs, created national markets, served as a model for big business, stimulated other industries
Steel Industry
An example of big business that was made possible by Captain of Industry Andrew Carnegie. It helped fuel industrialism in America and the manufacturing center was Pittsburgh.
Big Business
Term used to describe the corporations and monopolies since the industrial revolution of the late 1800s.
Transcontinental Railroad
Completed in 1869 at Promontory, Utah, it linked the eastern railroad system with California's railroad system, revolutionizing transportation in the west
Promontory Point, Utah
where the Union Pacific and Central Pacific railroads met; joined the railroads to create America's first transcontinental railroad
Chinese Labor
the immigrant work force responsibie for building the trans-continental Railroad
Cornelius Vanderbilt
a railroad owner who built a railway connecting Chicago and New York. He popularized the use of steel rails in his railroad, which made railroads safer and more economical.
Monopoly
exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices
John D. Rockefeller
an American industrialist and philanthropist. Rockefeller revolutionized the petroleum industry and defined the structure of modern philanthropy. In 1870, Rockefeller founded the Standard Oil Company and ran it until he retired in the late 1890s. He kept his stock and as gasoline grew in importance, his wealth soared and he became the world's richest man and first U.S. dollar billionaire, and is often regarded as the richest person in history
Trusts
Firms or corporations that combine for the purpose of reducing competition and controlling prices (establishing a monopoly). There are anti-trust laws to prevent these monopolies.
Standard Oil Company
John D. Rockefeller's company, formed in 1870, which came to symbolize the trusts and monopolies of the Gilded age. By 1877 it controlled 95% of the oil refineries in the U.S. It became a target for trust reformers, and in 1911 the Supreme Court ordered it to break up into several dozen smaller companies.
Horizontal Integration
A technique used by John D. Rockefeller. Horizontal integration is an act of joining or consolidating with ones competitors to create a monopoly. Rockefeller was excellent with using this technique to monopolize certain markets. It is responsible for the majority of his wealth.
Vertical Integration
Practice where a single entity controls the entire process of a product, from the raw materials to distribution
Andrew Carnegie
A Scottish-born American industrialist and philanthropist who founded the Carnegie Steel Company in 1892. By 1901, his company dominated the American steel industry.
Bessemer Process
A way to manufacture steel quickly and cheaply by blasting hot air through melted iron to quickly remove impurities. used by Andrew Carnegie
Thomas Edison
American inventor best known for inventing the electric light bulb, acoustic recording on wax cylinders, and motion pictures.
Light Bulb
Invented by Thomas Edison, changed life forever
Phonograph
a machine that reproduces sound by means of a stylus in contact with a grooved rotating disk by Thomas Edison
Motion Picture Camera
Invented by Thomas Edison; eventually would make movies possible.
Gilded Age
1870s - 1890s; time period looked good on the outside, despite the corrupt politics & growing gap between the rich & poor
Robber Barons
a negative term for business leaders that implied they built their fortunes by stealing from the public
Captains of Industry
owners and managers of large industrial enterprises who wielded extraordinary political and economic power
Sherman Anti-Trust Act
an 1890 law that banned the formation of trusts and monopolies in the United States
Social Darwinism
Applied Darwin's theory of natural selection and "survival of the fittest" to human society -- the poor are poor because they are not as fit to survive. Used as an argument against social reforms to help the poor.
JP Morgan
an American financier, banker, philanthropist, and art collector who dominated corporate finance and industrial consolidation during his time.
Investment Banking
Major Financing for Firms (investing Millions)
US Steel Company
Andrew Carnegie's steel company that was the biggest due to his improvements of the Bessemer process and then sold to JP Morgan
Capitalism
an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, esp. as contrasted to cooperatively or state-owned means of wealth.