capitalism: economic system based on private ownership of property & companies. goal= profit
TRANSCRIPT
Capitalism: Economic system based on private ownership of property & companies. • Goal= profit
Take A Stand (Agree or Disagree)
1. Private Property is essential to the American way of life.
2. Capitalism helps make society more successful.
3. Competition between companies is beneficial for both workers & consumers.
4. In theory, Capitalism is great; but greed sometimes causes corruption & harm
Read the following quotes by Andrew Carnegie.
What message was Carnegie trying to make in these quotes, & do you agree with this message? Explain.
1)“I started life as a poor man and I wish to end it that way.”
2)“The man who dies thus rich, dies disgraced.”
Examples: railroads, skyscrapers, nails, pins
Example: The Steel Industry
1850’s – Bessemer Process=steel produced cheaply.
• Therefore, the steel industry grew rapidly.
Henry Bessemer
Bessemer converter
Vertical Integration • Entire production
process is controlled by one company.
Raw materials - iron
Melting
Refining
Casting
Finished product – steel slabs
· Poor Scottish immigrant: Andrew Carnegie became the “King of Steel,” dominating U.S. steel industry.
Carnegie’s residence
· Carnegie reportedly gave $350 million of his $400 million fortune to charities, including $60 million to build libraries.
• Mathematically that gives Carnegie $50 million to live off of.
Harper's Weekly April 11, 1903
Andrew Carnegie in his “Great Double Role”
Caption reads: "Forty-Millionaire Carnegie in his Great Double Role. As the tight-fisted employer he reduces wages that he may play philanthropist and give away libraries, etc.”
Andrew Carnegie and the Homestead Strike
Is it ok to lower wages if you give the majority of your profits to charity?
• Standard Oil dominated oil industry.
• Ran his business aggressively.
• His donations made for medical research.
John D. Rockefeller
• Built his wealth in shipping and railroads.
• Provided the “gift” that found Vanderbilt University - named in his honor.
Cornelius Vanderbilt
• Designed the Pullman sleeping car
• Founded a company town
• Hired African-Americans• Lowered wages &
increased work hours
George Pullman
Industry = Need for laborers• 6 Day work week
• > $500 Annual Pay
• Child Labor• 12 - 16 hour days
Dangerous working
conditions
The Pullman Strike
Slums of the Working Class
Health Hazards
Disease
Racism
Should industrialists like Vanderbilt, Carnegie, and Rockefeller be viewed as
“Robber Barons” or “Captains of Industry”?