The Philosophy of the Industrialists

Thomas JeffersonSpoke of “Life, Liberty, and the Pursuit

of Happiness” Contrasting ideals of freedom lead to clash

in the “Gilded Age” Pursuit of happiness vs. Pursuit of Property

Why did so many Americans view corporations as evil entities that destroyed the dream of “Pursuit of Happiness?”

Does this help you understand?

No analogy in the past Individual achievement and Protestant “work-ethic”

basis New corps de-emphasized human element

Corporations were artificial creations Agreement between legislators and businessmen

Corporations threatened free competition Healthy competition benefits consumers and

producers

ReconciliationAre corps. beneficial to “happiness?”Justification:

Social Darwinism- Suvival of the fittest (rich=fit, poor=lazy)

Old ideal: hard work makes one (as well as nation) strong

Profit Incentive ($) as human motive

Social DarwinismHerbert Spencer (English Philosopher, coined

term ‘survival of the fittest’) Human society modeled after nature Humans should not interfere with nature Nature selects only the fittest for survival Welfare, state schooling, systematized

health care interferes Allows the “weak” to survive; damages “purity”

Self-Adjusting Economy

“Invisible Hand”—Adam Smith (Scottish

philosopher, econ. theorist) People are naturally selfish People go into business to gain wealth/power Called for no gov’t interference (laissez faire)

The activity is good for all society More production and trade More Competition Competition helps all with more goods/lower

prices This creates jobs/spreads wealth

More on SmithPolitical Economy ruled by unchanging

laws (think laws of nature or God)Self-Interest is natural and beneficialFree competition is a necessary law of

economicsGovernment is inefficient and should not

be involved with economic matters

Gospel of Wealth Essay written in 1889 Carnegie- wealthy must prove they are

moral/responsible Philanthropy is the key (he gives millions to build

public libraries across USA) Poverty is a consequence of a Cap.society but giving

$ to poor will alleviate poverty Excessive spending by rich is wrong, what will get

you into heaven is helping the poor Carnegie Foundation- today gives $ to fund education

Fewer Control More Businesses try to control

industry with mergers – buy out competing companies

Form monopolies – control production, wages, and prices

John D. Rockefeller founds Standard oil Company, forms trust Trust - separate

companies run as one giant corp.

The monopoly, represented by a pig, is trying to steal the world away from the poor man through the control of major industries

such as mining, railroad, telegraph, telephone and others.

Fewer Control MoreRockefeller and the “Robber Barons”

Rockefeller profits by paying low wages and underselling others

When he controls the market, he raises prices

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100

150

200

250

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Total number of billionaires

1865

1900

2004

322

279Chart shows the comparison in the number of billionaires from

1865 through 2004

How rich were the “robber barons” compared to Microsoft founder Bill

Gates?

The millions made by the robber barons is at the expense of the workers