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 John D. Rockefeller
◦ “I entered this life poor and I wish to leave ◦ Donated more than $500 million to various
it the same” educational, religious, and scientific causes
◦ Gave away $325 million or 90% of his ◦ Rockefeller University
wealth ◦ Rockefeller Center in NYC
◦ Carnegie Mellon University ◦ Rockefeller Foundation
◦ Carnegie Hall in NYC
◦ Carnegie Foundation
◦ 2,500 libraries across the U.S.
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?
VILLAIN
“Robber Baron”
HERO
“Captain of
Industry”
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