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HISTORY 14.3 - Coggle Diagram
HISTORY 14.3
How does Carnegie try to make his businesses more successful?
From Scotland in 1848 (age 12 he came to US)
6 years later --private secretary for local superintendent of Pennsylvania Railroad
Mother mortgages house to buy stock
First dividend check
1873 - Enters steel business after seeing bessemer process
By 1899 - Carnegie Steel produced more than Great Britain
New Business Strategies
Ways to make better products cheaper
Attracted employees by offering stock
Vertical Integration
Horizontal Integration
Sold in 1901
Should rich men like Rockefeller and Carnegie be considered robber barons?
rockfeller
1870- his standard oil company controlled 2-3% of country crude oil
1880-- 90%
profits
low wages
selll at a lower price than production to drive competiitors out
called robber baroon
he gave 500$ millon and fundated the rockfeller foundation
controls america
carnegie
gived 90% of his wealth
controls railroads and bussiness
yes
Explain the concept of Social Darwinism.
Principles of Social Darwinism
Carnegie's success explained scientificallyby a new theory
economists found in social drawinism a way to justify the doctrine of laissez faire (allow to do)
accorded to this doctrine the market place should not be regulated
William G. sumner promoted the theory that success and failure were governed by natural law and no one had the right to intervene
if you werent strong enough you couldnt survive. survival of the fittest, evolution in social setting rich vs poor
How does a trust work in business?
turn their stock over to a group of trustees
ppl who ran the separate companies as one large corporation
in return companies were entitled to dividens on profits erned by the trust