Why were John D. Rockefeller and Andrew Carnegie sometimes called robber barons?
(1 point)
Responses
They stole from the rich to give to the poor.
They stole from the rich to give to the poor.
They were known for their risky investment strategy.
They were known for their risky investment strategy.
They found tax loopholes and were able to keep all their money from the government.
They found tax loopholes and were able to keep all their money from the government.
They used ruthless business tactics against their competitors.
They used ruthless business tactics against their competitors.
They used ruthless business tactics against their competitors.
The main reason why John D. Rockefeller and Andrew Carnegie were sometimes called robber barons is because they used ruthless business tactics against their competitors. They were known for engaging in unethical practices to eliminate competition, such as forming monopolies and using aggressive strategies to dominate the market. This included actions like undercutting prices, driving smaller businesses out of the market, and exploiting their workers. These tactics allowed them to amass huge fortunes at the expense of others, leading to accusations of monopolistic and exploitative behavior, hence the term "robber barons".
John D. Rockefeller and Andrew Carnegie were sometimes called robber barons because they used ruthless business tactics against their competitors. To understand why they were referred to as robber barons, we can explore their actions during the late 19th and early 20th centuries.
Rockefeller was the founder of the Standard Oil Company, which eventually monopolized the oil industry. He employed unethical practices such as undercutting prices to drive smaller competitors out of business, strong-arming railroad companies into giving him favorable rates, and forming secret alliances with other oil producers to control the market. This predatory behavior enabled him to dominate the industry, accumulate immense wealth, and eliminate competition.
Carnegie, on the other hand, was a major figure in the steel industry. He controlled a significant portion of the market by vertically integrating his business, owning the entire production process from mining to transportation. This allowed him to eliminate middlemen, reduce costs, and undercut competitors. Carnegie also used aggressive tactics like slashing prices, engaging in predatory pricing, and engaging in union busting to maintain his dominance.
Their monopolistic practices, ruthless business strategies, and anti-competitive behavior led to their accumulation of immense wealth at the expense of their competitors and the working class. This is why they were often criticized as robber barons, as they were seen as exploiting their power and wealth for personal gain without regard for the well-being of others.