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Rise of Big Business—late 1800’s
Entrepreneur
Capitalism
Laissez-faire
Social Darwinism
Risk-takers who begin new ventures
Economic system in which most businesses are privately owned
“leave alone”; little or no gov’t interference
*Based on theory of natural selection*stronger people/business/nations will
survive & weaker ones will fail
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Business Tycoons John D. Rockefeller
Standard Oil (refinery)
Implemented vertical integration & horizontal integration
By 1875—refined ½ of US oil
Andrew Carnegie
Carnegie Steel Company
By 1899—dominated US steel industry
Sold 1901 to JP Morgan
John Piermont Morgan
Private banking
Financed many industrial consolidations
Cornelius Vanderbilt
Began in shipping
Invested in railroads during Civil War
Controlled most railroads in eastern US
George Pullman
Designed & built railroad sleeper cars
1881—built Pullman (company town outside Chicago)
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Captain of Industry OR Robber Baron?
By 1890 —about 10% of the US population held 70% of nation’s wealth!
Captain of Industry
• Extremely successful entrepreneur who dedicates part of his/her wealth to charitable pursuits
Robber Baron
• Person who made enormous amounts of money in business
• Insulting term that implied unfair business practices & little sensitivity to common worker