preview

Andrew Carnegie Vs. John D. Rockefeller

Good Essays
Andrew Carnegie and John D. Rockefeller were two of the early industrialists. Both of them were greedy criminals who exploited the country and its workers. Anyone who owned a large business in those days found it was possible to make more money by abusing the workers and competitors. Industrialists abused workers by forcing them to work longer hours for lower pay; they abused competitors by using predatory practices to either drive them out of business or acquire them. A business can do those things easily if it is a monopoly. Since a monopoly is the only supplier in a market, it prevents free market forces from setting prices. Price-fixing is an example: monopolies can keep the price high, because they know the buyer has no choice. In addition, monopolies can supply inferior products (which costs them less), again because the buyer has no alternative. As a result, monopolies have no incentive to improve their products or services, and the high prices cause inflation. This is bad for all consumers, because there will be no innovation. The early industrialists engaged in these monopolistic practices, sometimes in criminal ways, and that was bad for society.
When Carnegie decided to go into business for himself, he chose the steel industry, but his success came at the expense of his workers. He decided he should own the entire supply chain from iron mines and coal fields (to supply his raw materials) to ships and railroads (to deliver his products). He expanded rapidly; not
Get Access