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The term “robber baron” originally referred to feudal lords in Germany who charged high tolls. During the American Industrial Revolution, it was used to describe wealthy businesspeople who used unfair practices and showed little concern for workers. Many industry leaders, such as Carnegie and Rockefeller, donated to charity, but critics argue that they should have done more for their workers. Some see them as “Captains of Industry,” while others, like Veblen, view them as barbarians. The amount of money earned by robber barons is often seen as the fulfillment of the American dream, but most did not come from poverty.
A robber baron initially referred to a feudal lord, usually in Germany, who charged huge tolls for those who carried goods across their lands. More recently, during the American Industrial Revolution, the term was used to describe a person who made huge amounts of money in business. It was an offensive term that implied that a person used unfair business practices and showed little sensitivity towards the common worker.
It is certainly true that the early workers in the factories suffered inhumane treatment and worked in horrific conditions. Little consideration was given to worker safety, or to giving workers even a decent amount of time off. Many 19th-century immigrants became factory workers and, because of language barriers, were less able to stop the abuses.
The robber baron usually opposed unionization, as it would cost more money. So his money was often made on the backs of sufferers. Also, excess amounts of money from him could usually quell controversy or media attention if needed.
Most people are familiar with the names Andrew Carnegie, JP Morgan and John D. Rockefeller. While some may more positively call these men Captains of Industry, they were often referred to as robber barons due to their trading practices.
Many industry leaders, called robber barons, have actually donated large sums of money to charity. Indeed, New York City owes many of its remarkable buildings to the contributions of these men. Buildings like Rockefeller Center and Carnegie Hall were built through charitable contributions from the Rockefeller and Carnegie families.
However, many historians and economists regret that such charity was not extended to most of the people responsible for making these men very rich. Nowhere has the critique of the thief baron’s lifestyle been more evident than in Thorstein Veblen’s analysis, The Theory of the Leisure Class. To Veblen, these people resembled barbarians. What they could not achieve by reasonable means, they achieved by force. Furthermore, they lived on their booty or ill-gotten gain.
Some who would call a robber baron Captain of Industry, such as the conservative novelist Ayn Rand, saw these men as benefactors of society. Most liberal analysts would disagree with Rand’s assessment.
The amount of money earned by a robber baron has often been seen as the fulfillment and inspiration for the American dream. However, most did not start from the lowest strata of society. They came to middle class families where they would have greater access to better jobs with better working conditions. In most cases they cannot be seen as coming from “rags” to riches.
