Robber Barons or Captains of Industry?

Today’s Objective After today’s lesson, we will be able to…

◦ Discuss whether the industrialists of the late 19th century were robber barons or captains of industry

Robber Baron or Captain of Industry

Robber Baron◦ An American capitalist of the latter part of the 19th century who became

wealthy through exploitation (as of natural resources, government influence, or low wage scales)

◦ A business owner or executive who acquires wealth through ethically questionable tactics

Captain of Industry◦ The head of a great industrial enterprise

Andrew Carnegie Arrived in America as a penniless Scottish immigrant Began to work at 13 to assist his family In 1889, established Carnegie Steel Company Controlled suppliers and competition

◦ Vertical and Horizontal Integration

In 1899, Carnegie Steel produced more than Great Britain Carnegie Steel produced 80% of nation’s steel

John D. Rockefeller Born in 1839

His working life started as a bookkeeper

He established one of the first oil refineries

In 1870, forms a business trust with partners: Standard Oil

At its peak, controls 90% of all oil companies

Drove competitors out of business by selling oil lower than cost to make it

After competitor are driven out, prices skyrocketed to regain loss

Robber Baron or Captain of Industry

Andrew Carnegie◦ “I entered this life poor and I wish to leave

it the same”◦ Gave away $325 million or 90% of his

wealth◦ Carnegie Mellon University◦ Carnegie Hall in NYC◦ Carnegie Foundation◦ 2,500 libraries across the U.S.

John D. Rockefeller◦ Donated more than $500 million to various

educational, religious, and scientific causes◦ Rockefeller University◦ Rockefeller Center in NYC◦ Rockefeller Foundation

Agree or Disagree? After reading the quote on the board:

◦You will go to the corner of the room that matches your answer and discuss with the group. Be ready to share your reasoning’s with the class

Agree or Disagree

- The wealth that these men brought to the United States far outweighs their corrupt business practices.

Agree or Disagree?

- These men were ingenious and industrious leaders who transformed the American economy with their business skills

Agree or Disagree?

- Instead of giving their millions away to charity, they should have paid their employees better wages

Agree or Disagree?

- The growth of large business is merely survival of the fittest

- Social Darwinism

Agree or Disagree?

- Organized labor created more problems than it solved

- Haymarket Square Riot - Sherman Anti-Trust Act

Agree or Disagree?

- America is an equal “land of opportunity” for all

Agree or Disagree?

- The government should leave business alone

- Laissez Faire

Agree or Disagree?- A civilization which tends to concentrate wealth and power in the hands of the fortunate few, and to make of others mere human machines, must inevitably evoke anarchy and bring destruction

- Union Violence

Agree or Disagree

-People are, to a large extent, in control of their circumstances and therefore have the ability to succeed

- Social Darwinism

Horatio Alger Author who wrote about young boys ability to climb the financial ladder through hard work!◦ “Rags to Riches” (or upper-middle class)

Defended laissez faire economics Extremely influential due to rising literacy rates “Pluck & Luck”

◦ Pluck = resolve, ability to stand up to challenges◦ Luck = success brought about by mere chance

How to Succeed: Horatio Algerism An ambitious person can succeed financially if:

◦ Work hard◦ Are thrifty◦ Practice integrity◦ Follow the rules◦ Have some luck

The lazy and/or poor “deserve misery”

Social Darwinism

Economic competition is Natural Law The fittest in business will survive Business should not be regulated (laissez faire) The weak companies go under, while the strong survive

Gospel of Wealth Practiced and preached by Andrew Carnegie

Idea that the wealthy had a responsibility to give back to the community at large

The creation of public museums, parks, and beautification projects that benefited society as a whole

Which throne should they sit upon?

HERO“Captain ofIndustry”

VILLAIN“Robber Baron”

Ticket out the Door First, write a response explaining which “throne” (Hero or Villain) you choose for one of the men discussed today◦ Be sure to explain why you placed them there

Then, discuss whether you think the term robber baron is applicable today◦ Be sure to explain why or why not