Robber barons refer to the American businesspersons of the late 19th century who became very prosperous through dubious means. With enormous wealth, robber barons became the architects of the American Revolution. Most of the American industries during the gilded age were accredited to these businesspersons. Through their relentless and unscrupulous efforts, robber barons were able to expand the transportation, petroleum, and banking industries accelerating America’s economy.
It is alleged that through their firms, these businesspersons reduced the prices of their products and services to lure more customers and push their competitors out of business. After suppressing their business competitors, these dishonest individuals would hike their prices earning huge profits.
By colluding with corrupt politicians and authorities, robber barons ensured that they dominated the American business fraternity. Several literatures have accused these individuals for bribing lawmakers, exploiting immigrant employees, overworking their employees, and exploiting the country’s natural resources.
Through these inhumane acts, these individuals could cut down on their production costs to increase on their returns. Some literatures have accused the robber barons for abusing monopoly rights. Wassermann asserts that the robber barons abused their monopoly rights by pushing off their competitors out of the American market, having direct control over raw materials, controlling the money supplies, and forceful acquisition of opponent companies.
Through these fiscal trickeries, Rockefeller, Morgan, Andrew Carnegie, Jay Gould, and Vanderbilt were able to dominate over the American banking, transport, steel, sugar, and oil industries. By doing so, these individuals profited extraordinarily at the expense of their employees and the American citizens.
In general, robber barons played significant roles in the American industrial revolution. Through their wrangles, intrigues, and misfortunes the American history was shaped. During their times, economic transformations, massive constructions, and improvements in infrastructures were witnessed. Under their leaderships, their firms were run more efficiently leading to massive returns.
Over time, these businesspersons created massive business ventures and substantial personal powers. By the early 1890s, most Americans believed that big businesses were unsuitable for the country. According to these individuals, big businesses interfered with employees’ rights and threatened the existence of their competitor firms. Due to public outcry, the Sherman Anti-trust act was enacted in the year 1890.
Through this law, the government was mandated to limit the creation of huge businesses. Equally, the law mandated the federal government to investigate companies alleged to have abused their monopoly rights. This law was aimed at reducing unfair competition in the American market. Despite the enactment of this legislation, some of the American robber barons continued with their unscrupulous acts. However, during the leadership of President Roosevelt the law was applied extensively.
Most historians believe that the 19th century robber barons were greedy and selfish. As such, their corporations were a threat to employees’ rights and existing democratic principles. In spite of their criticisms, historians believe that without the robber barons relentless efforts, America could not have gained some of the current economic achievements associated with these businesspersons. Some historians believe that the criticisms directed at these businesspersons are unjustifiable.
According to them, the business environment in which these billionaires operated allowed them to engage in the alleged business acts for their business survival. These historians assert that the 19th century robber barons should be acknowledged for their creativity and relentless efforts towards the success of American industries at their time.