ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos

Lords of Greed 3452 Views


Share It!


Description:

Lords of Greed is an expression used to describe John D. Rockefeller, Andrew Carnegie, and J.P. Morgan, three rich guys who monopolized the American industry. How did they do it? Was it technology, new modes of transportation, financial innovation, or new business practices? Shmoop amongst yourselves.

Language:
English Language

Transcript

00:07

Lords of Greed – Mo’ Money Less Problems Let’s play a little game.

00:12

We’ll call it “Greedopoly.” We’ll definitely be playing the top hat.

00:17

The players in this game?

00:18

A number of individuals whose

00:19

aim during the late 19th century was to amass as much wealth as humanly possible.

00:25

We’re talking titans of industry -

00:28

guys like John D. Rockefeller…

00:31

Andrew Carnegie…

00:34

and J.P. Morgan...

00:38

who revolutionized business practices and built monopolies.

00:42

These three weren’t the only guys to experience success...

00:45

They were just better at recognizing major trends…

00:48

…and played the game better than everyone else.

00:54

Of course, they were happy to help society at the same time by providing new technologies,

00:58

making assembly lines run more effectively, and so on…

01:02

…but mostly, they just wanted swimming pools made out of diamonds.

01:06

These guys were whipping around the board, buying up all the most expensive properties,

01:09

and making all the right investments.

01:11

They certainly didn’t waste their time winning $10 at a beauty contest.

01:16

Thanks to them, America’s economy grew by more than 400 percent between 1860 and 1900.

01:22

The only other thing we can think of that grew that fast was Uncle Harvey’s belly

01:26

during the Superbowl…

01:27

But… how did the rich help bring about this economic boom?

01:31

What gave America such a leg up?

01:34

Well technological advances, improved transportation, financial innovation and new business practices…

01:41

…all combined to fuel this lightning-fast economic growth.

01:47

There were new technologies being developed

01:49

that improved industrial and agricultural productivity…

01:52

…growing cities provided markets and workers for industrial businesses…

01:57

…and improved rail transportation allowed products to reach distant markets,

02:01

which had never before been an option.

02:03

Suddenly, having “tunnel vision” was a good thing.

02:06

Carnegie’s big score was in railroads.

02:08

He made his fortune in the steel industry,

02:14

developing cheaper and more efficient ways to mass produce this valuable material.

02:19

He grew his empire, gobbling up other, smaller steel companies, and making it impossible

02:24

for anyone else to compete with him…

02:26

Poor Reading Railroad didn’t even see it coming…

02:29

Rockefeller was an oil guy.

02:31

Which could explain the slick head of hair.

02:33

He founded the Standard Oil Company, and got into the biz at just the right time.

02:38

With the sudden explosion of automobiles and other vehicles…

02:41

figuratively, not literally…

02:43

gas and oil were suddenly valued commodities.

02:47

Because of his good business sense and ability to predict the market,

02:50

Rockefeller was able to become the world’s first billionaire.

02:53

We’d definitely suggest staying at his hotel, as long as you don’t mind spending $500

02:57

to get a Snickers bar out of the vending machine. Morgan figured out that he could make his

03:02

money work for him. Rather than the other way around.

03:05

And he didn’t have to give it paid vacations either.

03:07

He was a corporate finance pioneer and made gobs of money arranging mergers and financing

03:12

the creation of new companies.

03:15

One of them was the Federal Steel Company, which eventually merged with other steel companies…

03:20

…including that of our friend Andrew Carnegie.

03:26

All three of these guys became big philanthropists toward the tail-end of their careers…

03:31

…starting numerous charities and giving back to society.

03:34

Although… tough to say whether they were inspired to open their wallets out of the

03:38

goodness of their hearts…

03:39

…or out of guilt. Of course, not everyone knew how to play the game.

03:43

There wasn’t a huge overlap between the money-hungry… and the food-hungry.

03:47

Unskilled urban workers moseyed along the board, landing on all the wrong spaces and

03:52

drawing all the wrong cards.

03:56

They did not share in economic gains, but instead endured poverty.

03:59

Unfortunately, there’s no Get Out of Poverty Free card.

04:04

For some, the path to financial success was extremely difficult, if not impossible.

04:08

If an individual was born into poverty and never had access to a good education…

04:12

… it was going to be tough for him to put a roof over his head, let alone have that

04:16

roof be a three-story one.

04:18

Others had plenty of opportunity to grab hold of the high life…

04:22

…but either they were lazy, or didn’t quite have the necessary smarts to make it happen.

04:27

Of course, there were still others who were busy playing an entirely different game altogether.

04:31

Say what you will about greed…

04:33

…but without it, our country never would have flourished and become the superpower

04:36

that it is today.

04:38

All we know is that, when we pass “GO”…

04:40

…we sure want somebody to give us our two hundred bucks.

Up Next

Why Does the Constitution Still Work for Us?
5721 Views

Ever heard of a "living document"? They eat and breathe just like the rest of us! They even walk around on their own two legs. Okay, fine—maybe t...

Related Videos

The Puritans and the Division of Church and State
1280 Views

If the Puritans had gotten their way, religion would play a much larger role in lawmaking these days. Want to know more? Watch the video for all th...

Shays' Rebellion
6345 Views

What happened between the creation of the Articles of Confederation and the ratification of the current U.S. Constitution? This video analyzes the...

There's More Than One Way to Crack a Modernist Egg
539 Views

The Modernists thought the world had a lot of problems, and they were intent on fixing them—or at least talking about fixing them. Unfortunately,...

Federalism
2532 Views

This video explains Federalism and the quest for a fair balance between state and national power. It covers the progression and compromises of Fede...