Robber Barons used the ideas of Social Darwinism, the notion that corporate consolidations - PowerPoint Presentation

Slide1

Robber Barons used the ideas of Social Darwinism, the notion that corporate consolidations provided social mobility and opportunity, and the great economic prosperity available to justify the existence of monopolies.

By Robber Barons: Junlan Lu, Sushil Bhandaru, Bhargav Vemulapalli

Of course they are justified!Slide2

Who are the Robber Barons?

Wealthy industrialists

Extremely powerful

Believed in creation of large, consolidated, organization

Some came from rags to riches

WE MAKE IT RAINSlide3

What does a monopoly look like?

When a single company is in control of an entire industry

No competition

Company can increase or decrease prices if desired

Example: Andrew Carnegie’s company: Carnegie Steel Slide4

Real Life Applications of Monopoly

Every man for himself

Try to buy other people’s property

Attempt to make everyone else bankrupt

Tend to use very forceful and vulgar techniques

The strongest survivesSlide5

Robber Barons

Use Economic Philosophies to Rationalize the Existence of MonopoliesSlide6

Economic Philosophies: Social Darwinism

Only the fittest survive and flourish

Attracted many industrialists like Carnegie

Legitimized the success of leading businessmen

Believed Government-controlled economy would failSlide7

Economic Philosophies: Law of Supply and Demand

Coincided with Social Darwinism

Determined all economic values

Based on principle that humans pursue own interests in a free market

Beneficial for monopoliesSlide8

Consolidations Gives Robber Barons the Opportunity to Advance Social ProgressSlide9

Advance Social Progress: The Gospel of Wealth

Great power = great opportunity

Excess revenues used on the community

Wealthy men should be philanthropists

Used to temper the harsh policy of Social DarwinismSlide10

Advance Social Progress: Great Wealth Available to All

Acres of Diamond: people can find wealth in their own backyards

Claimed most millionaires started off impoverished

Horatio Alger: poor country people can find great wealth in cities

Justified the positions of the Robber BaronsSlide11

Corporate Monopolies Spur Massive Industrial and Macroeconomic GrowthSlide12

Industrial and Macroeconomic growth: Integration of companies

Barons bought smaller companies, allowing expansion of their own

Eliminated harmful competition

Barons were convinced too many competitors led to an unstable economySlide13

Industrial and Macroeconomic growth:Benefits of Amalgamated Corporations

Cut down prices and costs

Created high-quality infrastructure

Stimulated new markets

Spurred creation of new jobs for the unemployed

Paved way to large-scale production Slide14

Conclusion

During the late 19th century into the early 20th century, America was transformed into an industrial empire by a group of industrialists, known as the Robber Barons, through wide scale monopolies that were tremendously lucrative. The Barons used various economic ideologies to vindicate the grandiose monopolies, which the populous strongly resented. In addition to justifying monopolies with harsh philosophies, the Barons argued that their great wealth could be used to benefit impoverished society through philanthropy and expansion of opportunity. Finally, the Robber Barons urged that the corporate monopolies’ macroeconomic growth and industrial success warranted the forming of monopolies.

Therefore, Robber Barons drew from ideas of Social Darwinism, the notion that corporate consolidations provided social mobility and opportunity, and the great economic prosperity available to justify the nature of monopolies.