The Captains of Industry and the Robber Barons
The presence of two groups of people—the captains of industry and the robber barons—was what defined the American economy in the late 19th century. Through the creation of large corporations that sparked contentious discussions about the role of government regulations and the authority of private businesses, these people have played a significant role in shaping the US economy. Few people controlled and possessed resources due to the monopolization of the economy, and they also exerted leadership in fields like business, politics, and society. (Nasaw 43). They controlled the output and market prices and any person who was seen as a competitor was eliminated or ransom extracted for them to leave the market. Workers were being exploited and forced to work under horrible working environments with low wages. Only those in the top bracket of wealth could vote for governor and state senate as per the New York constitution which was effected in 1777. The concentration of wealth among few individuals posed a threat on democratic institutions like the court where some individuals could determine the outcome using their wealth (Morris 61). They had the power and money to manipulate systems to favor them and their unethical practices.
Robber Barons' Behavior
They can be classified as robber barons because their behavior is consistent with the practices of robber barons (Morris 54). For instance when John D. Rockefeller formed a petroleum refining business with his partner Henry Flagler they drove down oil prices and bought competitors for them to dominate the oil industry.
Contributions to the US Economy and Wealth Creation
It can be noted that even though they found their way through unfair competitions by increased efficiency and controlled prices in every step they largely contributed to the growth of the United States economy and creation of wealth.
Work cited
Nasaw, David. Andrew Carnegie. New York: Penguin Books, 2014. Internet resource.
Morris, Charles R. The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J.p. Morgan Invented the American Supereconomy. New York: Owl Books, 2006. Print.
