Translate

Thursday, June 4, 2015

Andrew Carnegie and John D. Rockefeller: robber barons or captains of industry?

           For the past 3 days, the focus of class has been the business ventures and tactics of Andrew Carnegie and John D Rockefeller. The essential question we formed for the lesson is, Should Andrew Carnegie and John D Rockefeller be classified as robber barons or captains of industry? A "robber baron" is a powerful, corrupt businessman who destroyed or bought out rival businesses, treated workers poorly, bribed government officials, and hired personal armies in order to gain personal wealth. A"captain of industry" is a powerful businessman who is the leader of a specific industry and affects the community positively. In order to learn more about Andrew Carnegie and John D Rockefeller, we began a series of step by step assignments. First, our amazingly innovative teacher, Mrs. Gallagher, introduced the class to a four day plan about what we should be accomplishing each day. The purpose of the project is to form 40 questions on the topic to be used for the final exam. Then, we divided ourselves into four groups, key people, main ideas, important events, and essential terms. We then passed created a class wide google document to compile all of the information we collect in. Next, we watched an in depth video on the business tactics of Andrew Carnegie and John D Rockefeller. While watching, each group was responsible for taking notes on their topic and typing a summary of the notes into the google document. After all of the information was collected and analyzed, we had a discussion as a class where each group proposed an essential question that could be used to represent the lesson.
           Based on the information we collected as a class, Andrew Carnegie and John D Rockefeller should be classified as robber barons. During their rein of industry, both Carnegie and Rockefeller employed many corrupt tactics in order to gain advantage or personal wealth. In 1856, while trying to jump start his newly formed steel business in America, Andrew Carnegie committed many underhanded acts. "In this way, he was able to produce a higher quality steel at a lower price than his American competitors. He also kept production costs, wages, and salaries down and maintained complete control over his enterprise, in order to plow profits back into it."(McGuire, William, and Leslie Wheeler. "Andrew Carnegie." American History. ABC-CLIO, 2015. Web. 31 May 2015). In order to get his company's wheel's in motion and dominate rival businesses, Carnegie purposely kept wages and salaries of workers low. This selfish act takes money away from workers for Carnegie own personal wealth. In 1892, Andrew Carnegie was again under the public eye during the Homestead strike. " Four years later, however, Carnegie's reputation as an employer was damaged by the bloody Homestead strike at the plant. The strike, which began on June 29, 1892, revealed Carnegie's plans to destroy the iron and steel workers' union, and the event raised a public outcry."(McGuire, William, and Leslie Wheeler. "Andrew Carnegie." American History. ABC-CLIO, 2015. Web. 31 May 2015). In response to Carnegie's plot to destroy the union and threats of wage decreases, members of the iron and steel workers union began to strike. In many cases it became violent and often bloody. This was a direct result of Carnegie willing to destroy the union for his own personal gain. In 1882, under public scrutiny regarding the trust with standard oil, John D Rockefeller was accused of using underhanded business tactics. "Many suspected that Rockefeller and his associates had used illegal tactics and immoral business practices. Although Rockefeller paid fair market value for many companies he acquired, he drove others into submission through cutthroat attacks, such as selling oil at a loss and then, after the competitor collapsed, driving up prices. He was also directly involved in bribing politiciansóone observer commented that Standard Oil had done everything with the Pennsylvania legislature except refine it."(McGuire, William, and Leslie Wheeler. "John D. Rockefeller." American History. ABC-CLIO, 2015. Web. 31 May 2015). By attacking other by choking them out of the industry, and bribing government officials John D Rockefeller destroyed rival businesses and gained advantage using illegal tactics and immoral business practices. Carnegie and Rockefeller employed corrupt tactics to gain advantage or personal wealth, and should be classified as robber barons.
One the left, Andrew Carnegie is shown reducing wages. On the right side, he is 
shown giving back to the community.(Forty-Millionaire Carnegie in his Great Double Role," The Saturday Globe, 9 July 1892; from David P. Demares)

           In modern day, we do not hear much about robber barons. Mainly because in the early 19th century these business tactics used by Carnegie and Rockefeller were unheard of, but today they are common practices. Google executive chairman Eric Schmidt is an example of a modern day robber baron. Google admitted that it "used deceptive tactics and violated its own privacy promises to consumers."( "Google 21st Century Robber Baron." Forbes. Forbes Magazine. Web. 5 June 2015.). This happened under Eric Schmidt's watch and knew that this was happening. Googles rap sheet is extensive and doesn't and there, and the same for many other well known companies that we are all familiar with. Another example of a modern day robber baron is Sepp Blatter and FIFA. FIFA was accused of unfair agreements with officials regarding money. News of robber barons and corrupt companies are not popular news today because it is so common, and most people are used to it.

No comments:

Post a Comment