Study Guide Ch 10. 1) Identify
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1 1) Identify Study Guide Ch 10 Robber Baron (define, ID 3) super rich industrialist (owner of a company) Gospel of Wealth Social Darwinism 2) Describe how the Gov. failed in it s duty to protect people natural rights *and identify two examples) 3) Define a union (ID 2) and analyze why the were created and explain how they represented the workers
2 3) ID the business and importance of each individual Carnegie- 80% of steel Rockefeller- 90% of oil (Standard Oil) Vanderbilt- rail roads in the east JP Morgan- investment banker (had a controlling interest in over $20 bil. worth of companies) Robber Barons- group of Am. businessmen who controlled industries through monopolies and illegal means (robber- thief, Baron- King)
3 4)Who was Adam Smith and how did he explain Laissez-Faire Adam Smith- economist who said prices were influenced by the Invisible Hand Gov. needs not to interfere with the natural order of prices and business (Laissez-Faire) There needs to be competition for this idea to work!
4 5) What were two ways the government conspired to help business at the expense of the consumers? Supreme Court sided against regulation (rules on business) saying government can t get involved in regulating business Unions were suppressed preventing workers from demanding fair pay and working conditions Problem- Gov. was Laissez-Faire in helping ordinary Americans (protecting workers, providing fair pay/minumum wage), but the opposite in helping companies and rich ie-land grants for laying RR track (RR received 10 free sq m. of land for 1 m. of track laid) ie tariffs against foreign competitors (allowed companies to charge higher prices with little to no foreign competition)
5 6) Social Darwinism- survival of the fittest in regards to business (wealth deserve their wealth because the are stronger and the poor are weak and lazy) 7) Gospel of Wealth- Andrew Carnegie Rich have a responsibility to share their wealth with society ($ given to universities, libraries, concert halls) Problem is most money goes back to rich or middle class, not poor Rich used both of these ideas to justify why they had so much money but it was not entirely true!!!!
6 8) Identify the key idea of the following unions (group of organized workers who unite to get a better deal at work) Knights of Labor- racial and gender equality AFL- skilled workers, Samuel Gompersleader, most successful and most powerful union IWW- socialist (workers control the companies) most radical
7 9) What was the cause and effect of the following strikes Haymarket Square- Knights of Labor protesting treatment at work, bomb is thrown at police by an anarchist (not a member of the knights) Makes unions look like radicals trying to overthrow government and business (not people trying to earn fair working conditions) Pullman Strike- workers went on strike when wages were cut, President orders strike broken up by sending in troops Gov. does not side with workers, but sides with owners (Pullman blacklists the strikers- not allowed to work for the RR ever again)
8 13) What was the purpose of the Sherman Anti-Trust Act? How was it subverted Purpose- meant to allow government to regulate industry for the first time and limit monopolies which had to much power 1 st time Gov. gets involved in limiting power of monopolies (Gov not being Laissez-Faire) Subverted- used to limit power of unions stating that unions were trying to gain too much power like monopolies
9 14) ID four ways owners tried to counteract trade unions (rip off workers) 1) scabs- hiring replacement workers 2) blacklists- prevent people from working again who went on strike 3) Immigrants hired- who were not part of a union and worked for less 4) Government sided with business over workers (because business owned/bought off the politicians in Gov.)
10 15) ID four ways unions fought back 1) Sit-Down Strike- take over factory and not work 2) Sabotage- destroy company property 3) Work slowly- slow production 4) Picket- hoping people will notice and not buy product
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