Influence of Business Tycoons - Research Paper Example

Task: The influence of business tycoons Introduction The celebrated business tycoons like Jay Gould and John Rockefeller hadsubstantial influence in the economy, modern history, and the lifestyles of the individuals in the Unites States. The tycoons did the transformation of corporate in the country into big businesses. Some of things the tycoons did which influenced the economy and the lifestyles in the state were the starting up companies, which until today increase the country’s income. They also funded many institutions like hospitals, schools and other small enterprises, which still help in the growth of the United States. Until today, the economy and the living standards of people in the country are better than other countries. The influence of Andrew Carnegie Andrew Carnegie supported Booker T Washington by giving money to an institute called Tuskegee, which was founded by Washington. American history celebrates the live of Carnegie, which transformed from a person who never owned a dime to a person who lead financial empires of great power. Currently, the individuals in American still remember Carnegie and the way he influenced the lives of Americans and the economy of the country. The kind of corporate that he was dealing with is the steel industry. He started the industry in the year 1865 and when he died, he was a multimillionaire like the other tycoons. Before becoming rich, he was running errands for a telegraph office. After the time of relatively unrestrained capitalism, the tycoon in steel had made great development of a powerful financial system that some individuals enjoyed (Net Industries). The rapid economic development made by the tycoon laid a foundation for the modern economic growth of the United States. Together with other tycoons, many discoveries were made during their era. Still today businesspersons follow their paths by being single minded when pursing financial achievements and power (Net Industries). The tycoon played a great role in the creation of the modern America. Because of him and others like him, he made the country to be the wealthiest and a country with a lot of creativity as far as business is concerned. The man was very determined in raising the economy by making America to be a state that actively participates in the economy. This was not happening before the tycoons’ time (Net Industries). The tycoon actions in the past still affect the American, lifestyle today. As a pioneering philanthropist, he has had major influence of the lives of many individuals. Since he helped in upgrading the financial system of the state, individuals in America have better living standards compared to other individuals from other countries especially the developing countries. Carnegie assisted other tycoons in the establishment of the many foundations that showed massive private philanthropy (Net Industries). They came up with numerous medical projects, which improved the lifestyles of the individuals in the country. He also played a noticeable part in improving the instruction system in the country by giving funds to many libraries and schools. He funded many enterprises since he wanted other people to be successful like him. Additionally, he founded Carnegie institution in order to promote scientific researches. By funding hospitals and research institutions, he helped in upgrading the medical care in the country, and this improved the lifestyles of the citizens in the country compared to other countries. However, he later refused to give funds to the institutions claiming that it was the government responsibly. Since the man was too wealthy, he could influence the decisions of many politicians during that time. These decisions in turn affected the country’s financial system, which later affected the living standard of the individuals in the state (Net Industries). The influence of John D. Rockefeller The years 1850-75 were the start of big business in the United States. During the years, there was growth of trusts and other forms of monopoly, which reshaped the Western civilization. The tycoons like the Rockefeller increased the growth rate of industries in the country during that time. For instance, the tycoon gobbled up many small oil companies in order to create Standard Oil of Ohio, thus inaugurating the age of trust. Because of him, the country had the rise of big business, which was followed by the rise of big government. Since Rockefeller was at the forefront of the age of trusts, historians described him as the captain of industries since they admired him (Selcer 89). Rockefeller’s act represented the quality of the new breed in the state. He influenced the business since he upgraded the financial system of the United States by using their ruthless ways. Apart from influencing the country’s economy, he was also accumulating immense fortunes for himself. Together with other tycoons, they came up with an exclusive union of rich individuals whose association developed along nouveau riche. He lived a life, which was of conspicuous consumption and exercised excessive influence over the political system, whether trying to control the gold market or build transcontinental railroad (Selcer 89). John D. Rockefeller helped is fighting alcoholism. There was a campaign in America called the Anti-Saloon League, which drove the pressure of banning alcohol. John supported the campaign by his personal supports and a lot of money to the league. His influential backing was because of his strong moral belief. Additionally, his workers were also alcoholics and so he believed that if they were to quit alcohol, they would be more productive (Selcer 89). Rockefeller’s critics claim that he contributed in industrialization, which resulted into monopoly capitalism. The industrialization was the same as the one in Europe, which made the inequality in the wealth distribution to be worse. The critics described the tycoon as Robber Baron since, they though that he had a great influence over politicians’ views, which controlled much of the country’s financial system and expected the employees to work at subsistent wages (Selcer 89). Rockefeller claimed that in the growth of large corporate, only the strong would survive. The rich man used his achievements to influence the decisions of politicians by financing them. The wealthy was a role model to many Americans; he made them to value and hope to acquire wealth. The citizens believed that the country was the land of opportunity where all individuals can be successful if they work hard irrespective of their social background (Selcer 89). Industrialization that was influenced by Rockefeller reshaped American social structure by creating new classes of workers. During that time, many individuals prospered however; the individuals who worked in the industries went through a hard life. For instance, it was dangerous to work at the mines of southern Appalachians and Ohio River Valley. Additionally, the working hours were long and the wages were low. Since children used to work with their parents, miners died when they were still young due to the inhalation of coal dust (Selcer 89). The influence of Jay Gould Gould equally played a noticeable part in the development of the America financial system, which still affects the country currently. The country once idealized the tycoon for creating huge empire of finance. He assisted in spreading the networks of railroads including the development of the American industries at the North. Through his aggressive ways of doing business, he helped in augmenting the number of investors in the country, which improved the economy. During this time, great entrepreneurs like him had great influence over the state. Before the rising of Gould with other tycoons, there was no business spirit in the state. The creation of the huge industries like the railroad which was founded by him which had wide managerial hierarchies made the state to be more powerful that other states even until today (Economy-point.org). The development rate of the industrial bureaucracies was highly in the country compared to other countries especially the Gould railroads. Gould industries grew faster than any other states bureaucracy did. The lifestyles of many individuals in the state improved since they could earn some income after working in the industries. The industries employed many workers compared to country’s Civil Service. The railroad had approximately 100,000 workers, which were 80,000 more than the workers in the Civil Service were (Economy-point.org). The tycoon’s financial status had a great influence on the government. Leaders in business still follow Jay’s footsteps. For instance, they actively partake in the various areas of the public lives. Like the early tycoons, the current corporate leaders influence the fate of other smaller businesses. They also participate in serving the society and as education institutions’ trustees. They also influenced the government policy by conferring with the officials in the government on issues relating to the national policy. Jay with other tycoons still affect today’s business leaders’ operations. Like the past corporate leaders, the current ones are very concerned about the states financial system and the connection of the country with other countries. Even though they partake in the influencing the government decisions, they do not control the government (Hull). The influence of J.P Morgan The modern America still remember Morgan for his achieves in the corporate world. Morgan was born in a wealthy family and he continued to administer his father’s business and this sustained family financial empire. Being the head of the company that he had inherited from his father, his first duty was to augment the supply of gold in the county’s treasury by selling a 632 million dollar state bond issue. By 1900, the tycoon was very successful since he was topping in the companies financing corporate and marketing bond issues for the country and the British governments (Bodley 404). Morgan assisted in the organization of many railroads into the Northern security system. Morgan’s participation in the business is still being felt today in America. He helped in the establishment of the United States steel, which is the largest corporation until today. His company also played a big part in upgrading the financial system, which has raised the living standards of many individuals in the country. This happened when his company financed the international harvester, American Telephone, and the General Electric (Bodley 404). In all the corporations including banks, he served as a director. Until recently to the people in the state, Morgan still symbolizes everything that is good about the economic system in the country. However, to his critics, he was a Robber Baron like Rockefeller (Bodley 405). Amidst the critics, Morgan was a monopolist who was using the privileges to augment prices and lower wages. His great wealth and the management of the biggest businesses made him to have a great influence over the politicians during his time, and corporate leaders in America are still doing this even today. He was involved in many vicious stock issues to control smaller companies. The battle was disadvantageous to the small stakeholders and those living on small pension. Morgan would negotiate and sell stall for half their worth. This made the pensioners and investors to end up having less than what they had paid for stock shares, and Morgan ended up having a new company. Even today, those monopolized companies make their rival to suffer from great losses (Bodley 404). Morgan also influenced the social lives of many individual in those times and even today, many Americans still benefit. He donated to education and charity. This improved the education system in the country and the effect is still being felt through the improved economy today. Among the donations that he made, was the funding of the Cathedral of St. John in New York. He did many art collections and in one year, he spent about one million dollars on tapestries and scrolls. He made donations of his work, which are still displayed in museums and libraries (Bowen). Conclusion The business tycoons of the past influenced the modern financial system, lifestyle, and the modern history of America. After the war, there was the rise of industrialization, which was associated with big business, which made the tycoons like Andrew Carnegie and Rockefeller among others to be famous. The tycoons influenced the living standard of individuals in America after funding institutions like libraries, schools and other enterprises. Some of the institutions that they funded are still doing well and very useful to the citizens. They also funded hospital, this made the conditions in the hospitals to upgrade, and hence mortality rate was reduced. They also influenced the modern economy of the country by starting the companies, which until today play a great part in the financial system. For instance, the steel industry that was started by Carnegies is still one of the major industries in the state. The company still upgrades people’s living standards and the economy since many people get employments from the firm, and it contributes to the states income. However, to some critics, the tycoons influenced the country negatively since by influencing the politicians and monopolizing companies, it resulted into the elevation of prices and lowering of wages. Work Cited Bowen, Liz. J.P. Morgan: A Biography by Liz Bowen. Fordham University. 2012. Web. 3rd May 2012 Bodley, John H. Cultural Anthropology: Tribes, States, and the Global System. Lanham, Md: AltaMira Press, 2011. Print. Economy-point.org. Jay M. Gould.Economy-point.org. 2011. web. 3rd May 2012 Hull, David. The Stephen Jay Gould Archive. SJG. 2000. Web. 3rd May 2012 Net Industries. Carnegie, Andrew-Overview, Personal Life, Career Details, Chronology: Andrew Carnegie, Social and Economic Impact. Web. 3rd May 2012 Selcer, Richard F. Civil War America, 1850 to 1875. New York: Facts On File, 2006. Print. Read More