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Then and Now
Robber Barons, a term used in the late 1800s and early 1900s to describe a businessman who made an enormous amount of money, today we would call them billionaires. It was not really the fact they made an extreme amount of wealth, it was more the way they made it. In all the cases the acquiring of wealth was done in what was considered a ruthless manor and unscrupulous ways. A robber baron was more interested in acquiring wealth than the safety of his employees, the amount of work hours performed in a week, or the amount of wage being paid for a days work.
For example Andrew Carnegie(the robber baron of the steel industry), he was instrumental in starting the 72 hour work week, paying out less than fair wages and having dangerous working conditions.
The robber barons were known for their business tactics that would enable them to amass a wealth by monopolies. They would corner the market on a product or service and make it almost impossible to get, accept through them.
One such person was James B. Duke (robber baron of the tobacco market).James Duke started marketing tobacco from his fathers tobacco farm at an early age. He developed a market for tobacco though advertising. When the market he developed, started growing he started buying up other tobacco companies in order to be the only supplier of the product. James Duke eventually formed The Great American Tobacco Co. which became the biggest supplier of cigarettes in the world.
One thing the Robber Barons of today and yesterday have in common is monopolies. If it at all possible, the Robber Baron or billionaires as we call them today, would try to corner the entire market on their product or service, making it difficult for competition in their particular industry.
James Duke did it by making a market for cigarettes and cigars and buying up his competition so he was the biggest company to supply the product.
Andrew Carnegie cornered the market on the steel industry and made the first high rise building. He was the only business in his field therefore he could set his prices and up his profits.
Other Robber Barons in various markets were William Vanderbilt, he monopolized the railroad business allowing him to set his own prices for freight and passage. John D. Rockefeller monopolized the oil industry with Standard Oil company.
Today AT&T, the phone company, before deregulation controlled the vast majority of the phone services, thereby monopolizing the phone services.
American Airlines, there unscrupulous business tactics would drive out competitors from areas they wished to control by having price wars until the opposition could no longer compete and would have to close their doors for business.
But the biggest and wealthiest of them all, Bill Gates owner of Microsoft Corporation created an operating system for computers to work with and the market to sell that system. Before Bill Gates came along computers were only an informational source. What ever was programed into them was retrievable but you could not add information to them. Basically they were just a big file cabinet. Bill Gates made it to where you can talk to the computer and add information to them. This made them more user friendly and a very usable tool for personal and business use. But just like the Robber Barons of yesterday Gates cornered the market for his software by orchestrating a marketing plan that would require computer companies to pay him X amount of dollars for every computer they sold, whether or not the computer had his software on it or not. Now if you think about it, the computer companies had no choice but to put his software on the computers they sold. Kind of sounds like a monopoly to me.
The other side to the Robber Baron coin. For some unknown reason the Robber Barons felt it necessary to give back enormous amounts of their wealth to the society they took if from, or maybe a better way to put it is earned it from? It was done in a manner that for the most part immortalized the giver. For instance James Duke or the Duke Endowment gave money to several Universities. This in turn eventually got his name on one, Duke University in Washington,
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Gilded age, Andrew Carnegie, Rockefeller family, Industrial history of the United States, Robber baron, John D. Rockefeller, George Soros, Bill Gates, James Buchanan Duke, The Gospel of Wealth, Standard Oil, Henry Clay Frick
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