Transcript of Corporate Monopolies & Trusts. What IS a corporation? Some of you are saying this…
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- Corporate Monopolies & Trusts
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- What IS a corporation? Some of you are saying this
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- People buy parts of a company and are not personally
responsible if something goes wrong. As of July 22, 2014 there were
8,239,848,789 Microsoft shares Bill Gates owns 330 million Ballmer
owns 630 million Whoever has the most stocks, get the most votes on
decisions and the most money paid out in dividends.
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- In the eyes of the law, the corporation is a person so no one
person is responsible A group gets together to make decisions. Its
called a shareholders meeting. Ever wonder whats really so
important about his place? Its where these are bought and sold
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- 1)Does this cartoonist think corporations are good or bad?
2)Who are the 3 people at his heel? 3)What is the relationship
between government and corporation in this cartoon?
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- How many corporations can you list in 30 seconds? Heres 50
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- Monopoly: Mono = one (company) poly = many (parts) So One
company/person with total control of an industry Corporate Trust: a
large business usually used their size to stop competition used
unethical/abusive methods Philanthropy: donation of money or
property (or both) Labor Union group of workers that cooperate for
better conditions Social Darwinism survival of the fittest this was
used to justify the difference between the rich and the poor
Industrialist person who is in charge of an industrial company
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- How many major corporation founders can you name? Sam Walton
Steve Jobs Phil Knight Richard & James Cabela Henry Ford
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- Were going to look at 4 major corporation founders of the
Gilded Age Keep in mind Laissez Faire the government stayed out of
business and not everybody played nice
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- Gilded Age Powerful Men Andrew Carnegie John D.
RockefellerCornelius Vanderbilt J.P. Morgan
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- Built a steel mill in Pittsburgh With profits, he bought more
mills, mines, and ships Controlling every aspect of the business,
he could sell cheaper than his competition
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- Paid low wages Expected 12 hour shifts Crushed attempts to
start labor unions
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- Massive growth required steel for building skyscrapers,
bridges, etc
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- Ruthless in business, he was a philanthropist in his later
years Gave away $350 million to build libraries and benefit
universities The long-term effect of what he started
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- Wrote an essay Gospel of Wealth Wealthy have a responsibility
to philanthropy Poverty in capitalist society can be eliminated
through charity of the rich Help people help themselves (Definition
of gospel good news)
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- Started by selling fruits and vegetable Used his profits to
build an oil refinery 1859 Edwin Drake creates first successful oil
drilling well in Pennsylvania Access to underground oil &
industrialization created a need for oil beyond just lamps Show:
John D Rockefeller Fueling America
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- 1870 Standard Oil Company 1879 company controls 90% of oil
refining in US 1882 company becomes a trust with Rockefeller
controlling largest proportion of shares
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- Standard Oil becomes a monopoly He forces railroads to give him
secret rates and charge his competitors more
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- Recognize any of these? In 1892 the government forced Standard
Oil to break-up
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- Another example of ruthless businessman that gave away million
Helped found University of Chicago and The Rockefeller
Foundation
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- Started a ferry business at 16 Used profits to build fleet of
steamships Sold his ships and bought railroad stock Owned several
rail lines Didnt share the belief that he had a duty to share his
wealth with the public
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- As business booms, they need a way to transport goods
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- Son of a banker Started his own bank Became so powerful, even
the government came to him Heavily involved in creating railroad
and steel monopolies by making it difficult for competitors Yep,
the little dude was intended to look like Morgan
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- Were these entrepreneurs good or bad? If you think they were
good, you would refer to them as: Captains of Industry they rocked
it, advanced industry, helped the economy If you think they were
bad, you would refer to them as: Robber Barons they made their
money off the backs of the people, they were ruthless in dealing
with other businesses, they manipulated the government