ID: Andrew Carnegie
When: Late 19th Century (Roughly 1870s-1900s)
Who:
- Andrew Carnegie: Scottish-American industrialist, philanthropist, and author.
What:
Andrew Carnegie rose from poverty to become one of the wealthiest men in the world through his involvement in the steel industry. He utilized the Bessemer Process to improve steel production, leading to the creation of Carnegie Steel Company. He later sold his company to J.P. Morgan, forming U.S. Steel. Beyond his business success, Carnegie is known for his philanthropic efforts, advocating for the “Gospel of Wealth,” which promoted the idea that the wealthy had a moral obligation to use their fortunes for the benefit of society. This philosophy influenced his significant donations to libraries, universities, and other public institutions.
Impact: Why Significant?:
- Industrial Revolution: Carnegie’s innovations and business practices significantly impacted the growth of the American steel industry during the Second Industrial Revolution. His success embodies the era’s rapid industrial expansion and the rise of big business.
- Vertical Integration: Carnegie’s business model, involving vertical integration (controlling all aspects of production, from raw materials to finished product), became a model for other industrialists.
- Philanthropy and the “Gospel of Wealth”: Carnegie’s philanthropic endeavors profoundly shaped the landscape of American philanthropy and spurred debates about the responsibilities of wealth and the role of the wealthy in society. His substantial contributions to libraries, for example, expanded educational opportunities across the nation.
- Monopolies and Trusts: Carnegie’s success also highlighted the growing power of monopolies and trusts during the Gilded Age, sparking public debate about economic inequality and the need for government regulation. His company’s dominance raised concerns about unfair business practices and their impact on competition.
- Social Darwinism: Carnegie’s philosophy, while philanthropic, aligned with certain aspects of Social Darwinism, believing that the accumulation of wealth was a natural consequence of competition and that the wealthy had a responsibility to help those less fortunate. This connection to Social Darwinism is a key aspect of understanding his legacy.