Case Study: Carnegie v Rockefeller

characteristics of a "robber baron"

powerful industrialist, established large businesses in the late 1800s, business established at expense of the public, most specifically on the backs of workers (low wages, dangerous conditions, etc), perceived to have drained the country of its natural resources, persuade public officials to interpret laws in their favor

Characteristics of a "captain of industry"

powerful industrialist, established large businesses in the late 1800s, strengthened the american economy (building factories, raising productivity, and expanding markets), created jobs for americans, raised our standard of living and established outstanding museums, libraries, and universities

andrew carnegie- country of origin

Dunfermline, Scotland, United kingdom

andrew carnegie- major industry in which he made his wealth

steel

andrew carnegie- robber baron or captain of industry, why?

captain of industry, gave to his community

philosophy of the gospel of wealth (3 ways in which the ultra wealthy can dispose of wealth)

1.)left to families of the descendants
2.)can be bequeathed for public purposes
3.)administered during their lives by its possessor

why is the 3rd way superior

the third way is superior because he gets to choose who his wealth goes to and what its for, it brings the rich and the poor together

what is the problem with the first 2 ways?

1- sons can be great without the money, they have to learn independence and appreciate where they get the money from, the only way to do that is for them to work and get the money themselves
2-they were forced to leave money this way, didn't get to choose what they wanted to do with it

type of activities carnegie would support with his wealth/why

education and research purposes, building public libraries, he believed that it was important to teach people/help people in a way that would last them a long time or forever not just a couple months

type of activities carnegie would not support with his wealth/why

charity, only helps people in the moment, after the charity goes away, they are back to struggling again

who used vertical integration

andrew carnegie

vertical integration- describe the economic practice

the process of gaining control of the many different businesses that makes up all phases of a product's development

John D Rockefeller- major industry in which he made his wealth

created a standard oil company, became a billionaire

John D Rockefeller- robber baron or captain of industry/why

robber baron, wanted a monopoly

horizontal integration- describe this economic practice

a business grows because they acquire a similar business into theirs in the same area of the supply chain

who used horizontal integration

john d rockefeller

define: monopoly

exclusive possession or control over the supply of or trade in a commodity or service