Fine Line Between Thief and Entrepreneur

field_image
Question

Why is Donald Trump considered a “Captain of Industry” instead of a “Robber Baron”?

Answer

This provocative question contains at least four historical sub-questions: what’s a captain of industry? what’s a robber baron? what’s the difference? and is Mr. Trump either one? Clearly, there is also a judgmental tone to these terms – the first speaks of admiration, the second of condemnation – though by whom?

In time the two categories can blend

In America’s manufacturing age (c.1870-1970), “Captains of Industry” were men (always men, in my experience) who built and dominated an important section of the expanding US economy, then reached beyond their business interests to underwrite significant educational, cultural, medical or humanitarian projects. These individuals were our business statesmen, with Andrew Carnegie the classic example (libraries, an endowment for peace, an early fund for teachers’ pensions). Bill Gates and Warren Buffet are perhaps contemporary successors to the steel industry giant, both likewise making extensive philanthropic contributions. Robber barons, by contrast, achieved vast wealth by what many regarded as dubious means, even in the laissez-faire 19th century.

A “pure” robber baron would laugh off the disdain (and the envy) the title conveys, enjoying his pirate status.

Tricky stock maneuvers, shady contracts, credit squeezes, and at times outright fraud defeated competitors and paved the way to monopoly power (or to oligopolistic power-sharing among barons). As well, they used spies, lockouts, and force to crush their workers’ efforts to increase safety, job security, and earnings. Jay Gould, the high-energy railway consolidator, and John D. Rockefeller, the oil magnate, may stand out from the historical crowd, whereas in our financial age, Enron’s top leaders and Bernard Madoff might qualify. Robber barons may be seen as successful entrepreneurs who value money and power above all else. However, in time the two categories can blend. For example, although Rockefeller schemed mightily to create Standard Oil, his later charitable foundations, carried on by heirs, profoundly rehabilitated a spotty reputation. A “pure” robber baron would laugh off the disdain (and the envy) the title conveys, enjoying his pirate status. Now, on to Mr. Trump. My online research suggests that those describing him as a captain of industry tend to be journalists generally unaware of the term’s historical roots. Now it stands as a rough synonym for “big businessman.” Trump clearly did not build a major industry – his family had long been involved in real estate development, a long-established field to which he apprenticed and in which he prospered, twice weathering sharp reverses, in the 90s and after the 2008 economic smash. Though he managed dozens of deals, he has won without fraud and has often lost. One observer notes wisely that the term “captain of industry” represents “primarily a perception of the selflessness of the industrialist in question.” Though Mr. Trump has made many charitable donations, his successful self-promotion has made him a celebrity, so much so that condo developers have licensed his name, providing him an 8-15% royalty on gross sales. Thus, my sense is that Mr. Trump is neither a captain of industry nor a robber baron, but instead an extraordinarily-gifted entrepreneur who has transformed himself into a global brand.

For more information

Blair, Gwenda. The Trumps: Three Generations That Built an Empire, New York: Touchstone, 2001.

Chernow, Ron. Titan: The Life of John D. Rockefeller, New York: Random House, 1998.

Klein, Maury. The Life and Legend of Jay Gould, Baltimore: The Johns Hopkins University Press, 1986.

Nasaw, David. Andrew Carnegie, New York: Penguin, 2006.

Tarbell, Ida. The History of the Standard Oil Company, New York: Cosimo Books, 2009 (reprint of 1904 edition).

Bibliography

Chandler, Alfred D.Jr. The Visible Hand: The Managerial Revolution in American Business, Cambridge, MA: Harvard University Press, 1977.

Colihan, Christine and Amy Vitcusky. The Great Industrialists: Captains of Industry or Robber Barons. Industrialization. August 2006. (for an 11th grade lesson plan on captains of industry vs. robber barons)

Fitch, Stephane. "What is Trump Worth?" America's Richest. 21 September 2006. (on licensing his name)

Josephson, Matthew. The Robber Barons: The Great American Capitalists, 1861-1901, New York: Harcourt, Brace and World, 1962.

NYPhilanthropist. "Donald Trump." 2010.

Pollick, Michael. "What Is A Captain of Industry?" wiseGeek 08 September 2010. (for ‘selflessness’)

The Cost of Industrialization

Teaser

Use the Triangle Shirtwaist fire to examine the benefits and costs of industrialization.

lesson_image
Description

Students use a variety of primary source documents and a structured discussion process to understand the events and conditions surrounding the Triangle Shirtwaist Factory fire of 1911.

Article Body

One of the greatest strengths of this lesson is its wealth and variety of primary sources. In addition to firsthand narrative accounts, the site also includes many photographs and political cartoons for students to analyze. Another strength is the way the lesson engages students in discussing sources with each other: students share their perceptions with one another after each step of document analysis, and then comment on one another's perceptions—setting the stage for lively historical discussion and debate.

Students begin the lesson by taking a brief opinion poll regarding industrialization, organized labor, and economic justice. At the end of the lesson students take the same poll, and discuss with their peers how their perceptions have changed as result of what they learned during the lesson.

Many of the text documents are long and may be challenging for some students, though some, like "Days and Dreams" by Sadie Frown would be relatively accessible to a high school student, or an advanced middle school student. It is written in narrative style, in simple language, and is of a moderate length. Other documents may need adaptation to meet student reading levels. However, the lesson also contains a sizeable collection of political cartoons, photographs, and other images. These could very easily form the central focus of the lesson, providing lots of material for students to discuss with one another.

Most of the documents (particularly the photos and cartoons) clearly condemn the factory owners. There is one account of the fire from the factory owners' point of view, in step five, which is listed as an "extra document," but one that is "strongly recommended." We echo that recommendation as this document allows students to see an alternative point of view on the event.

While students use primary sources as a vehicle for reshaping their initial hypotheses about industrialization, organized labor, and economic justice, information about the circumstances of each source's creation is not always readily available to students. Where this is the case, we recommend that teachers encourage students to use the source's content to identify the perspective of its author.

Overall, this is a good lesson that provides a useful tool in highlighting for students how their perceptions of history can change after exposure to a large mass of evidence. Often when teaching students the historical process, it is helpful to focus on just one aspect of historical thinking; otherwise students easily become overwhelmed. This lesson does just that: it helps students to focus on their own changing perceptions as they encounter the documents—an essential element of historical thinking.

Topic
Industrialization, organized labor, Progressivism
Time Estimate
2-3 class sessions
flexibility_scale
1
Rubric_Content_Accurate_Scholarship

Yes

Rubric_Content_Historical_Background

Yes
A wealth of background information is available from the Cornell University website on the Triangle Factory Fire.

Rubric_Content_Read_Write

Yes
The lesson requires significant reading; there are many opportunities for teachers to insert writing activities as well. The second part of the assessment would be one ideal place.

Rubric_Analytical_Construct_Interpretations

Yes
Students analyze sources in an effort to refine their interpretation of the events at the Triangle Shirtwaist Factory.

Rubric_Analytical_Close_Reading_Sourcing

No
Some source information is included with the documents, and teachers can add a requirement that students note the creator and date of the source's creation.

Rubric_Scaffolding_Appropriate

Yes

Rubric_Scaffolding_Supports_Historical_Thinking

No
Some additional adaptation of documents and reading aids may be necessary for your students. Students may especially need help with reading the political cartoons closely—see this guide for ideas.

Rubric_Structure_Assessment

Yes
The second part of the assessment, in which students create contents for a time capsule and must determine how the factory fire ought to be remembered, is especially strong. Its multiple parts allow you to easily tailor it for your students.
No assessment criteria are included.

Rubric_Structure_Realistic

Yes

Rubric_Structure_Learning_Goals

Yes

FDR's Fireside Chats

Video Overview

Historian Allida Black analyzes FDR's April 28, 1935 Fireside Chat. What ideas and arguments does FDR present to the American people? What does his speech say about his goals for the New Deal?

Video Clip Name
Allida1.mov
Allida2.mov
Allida3.mov
Allida4.mov
Video Clip Title
FDR's Push for Recovery
First Steps and Beyond
Laying Out Principals
The New Deal Today
Video Clip Duration
4:40
4:16
4:33
3:41
Transcript Text

It's a Fireside Chat given April 28, 1935, in the White House Diplomatic Reception Room, one of the 27 fireside chats that FDR gave and it's on the Works Relief Program, when he's really trying to force the Congress to address the issues that didn't get attention in the first two years of his inauguration.

You know, historians often talk about the first New Deal and the second New Deal as if there were clear benchmarks, that there were clear, like, highways down the middle that divided the two. I think it's easier, really, to talk about when you look at this document, to look at the overarching goals that FDR had for the New Deal and what the problems were that he confronted when he came into office.

He says, "Our responsibility is to all the people in this country. There's a great national crusade to destroy enforced idleness which is an enemy of the human spirit generated by this Depression." FDR believed that confidence and action were essential to confronting the Depression individually, collectively, and politically.

The purpose of this is to show the American people that the Roosevelts care, that the economy is fundamentally sound and that what is just as important as solid government policy is their confidence in themselves and in the government to get through this, because America is the only society in the history of the world from the beginning of time—the history of the world—not to have a violent revolution and an overthrow of the government when their economy tanked.

When FDR comes into office he is elected in November 1932, and he will not take office until March so there's a five-month dead time or political vacuum, if you will, where FDR's trying to get a handle on how best to deal with the great crisis in the country.

Now, historians disagree on how pervasive the Great Depression was. What they do agree on is that it's the greatest depression in American history. The day he takes the oath of office, the vast majority of farms in Mississippi were on the auction block. At the same time that this Fireside Chat will occur, the Midwest will have a horrific dust bowl. So you had a natural crisis, you had an economic crisis, and you had a great crisis of confidence.

The Great Depression starts really the day World War I ends, not just because of the Treaty of Versailles but because the farm economy goes into the toilet. And so when the farm economy, which is almost 50 percent of the American economy at that point, goes into the toilet, that has a significant impact on people's ability to purchase, to buy goods and that has a huge impact on inventories which has a huge impact on manufacturing which has a huge impact on small business, has a huge impact on bank loans, and so it's a downward cycle.

What FDR fundamentally believes is that the Great Depression is as much psychological as it is economic and so what he wants people to believe is that it can get better. And his fundamental approach, what he will call this great national crusade, is to get business and citizens working together for the common good. Capitalism and government for a united purpose that serves not only small vested interests or business interests or individual selfishness, but the common good. And there's still poor, but the gap is narrowed.

So when FDR comes into office in March of 1933, he's got to deal with a banking system that is in shambles. People are taking out their savings because they don't trust the banks. A third of the banks have shut their doors, have collapsed, so what FDR first has to do is to prop up the banks.

The next thing he's got to do is prop up the agricultural economy because agriculture is where the vast majority of unemployment is. Once FDR gets the banking system set up, he deals with the two fundamental sectors of the American economy—business and agriculture. And agriculture is dealt with the Agricultural Adjustment Act because it's the issues of over-production and under-consumption. So FDR says to the farmers, listen, we got to control over-production which means that you can't use all of your land. But the government wants to help you and not penalize you for doing this, so if you take 10 percent of your land out of cultivation, if you leave it fallow, then the government will pay you 10 percent of what you made last year to help make up for that loss.

So, once FDR deals with the farm economy, he's got to deal with big business and small business. The legislation is the National Industrial Recovery Act, the NIRA. It sets up the NRA, the National Recovery Administration. Now, instead of saying, okay, take 10 percent of your business aside and we'll pay you, they set up a gazillion codes—price codes and wage codes. And if you adhered to it, you got this great blue eagle that you put in your window as this great government seal that says "we do our part," you know. And what're you doing, what is your part?

By 1935, the economy is back to where it was in 1929. It's back to where it was when the stock market crashed, but the stock market is not the beginning of the Great Depression. It's when the Great Depression hit the middle class.

And so what FDR realizes in 1935 is that he has to take additional steps to deal with these crises because the big overarching programs, the Agricultural Adjustment Act, the National Recovery Administration, are not dealing with the problems in as comprehensive and widespread way as FDR wants.

So how does FDR navigate this?

Well, he's got a great Democratic majority in 1934 because the Democrats really come back and take over Congress, so he's got to capitalize on this good will. He's got to address his critics and he's got to address the American people to get them involved.

FDR is getting ready to present all of this legislation in 1935 and it's this together that's collectively known as the second New Deal. And so when FDR begins to do this, he understands how to talk. He can talk to the American people without being condescending. Whenever FDR was on the radio, as many people listened to FDR as listened to Amos & Andy which was the most popular show on the radio.

It is a remarkable study in power and in conversation. It's not a press conference. It's more like a graduate tutorial to the American public on how relief policy is going to work and the extents, the limits and successes, that his early policies have put into play. He talks about how far they've come, but clearly there's much more to do.

He does believe, if you look at this, that America has to get away from the trees and look at the forest. He talks about getting out of Washington and going to Hyde Park or going to Georgia. I mean, that's a great metaphor, but it's a metaphor not just for him. It's also a metaphor for the American people. Don't just think about you. Think about the country as a whole.

You get a real clear picture of how smart FDR thought the American people were. I mean he's talking to them about checks and balances. He's talking to them about laying out a whole new vision. This is what the vision's going to be based on.

One of the reasons that this speech is so detailed is that it's a conceptual speech. He's laying out the vision. He wants America to buy into the vision without getting distracted by the details. He's going to say this is the hull of the boat, this is the framework. This is where the boat's going to go.

Let's think about the ship building analogy that he uses at the start. All you know is it's a ship and so FDR's saying the economy and recovery is like a ship. And so what he's doing is he's getting the American people to visualize as they sit around this radio the construction of a boat. And then what can happen in their local community if the state and federal government partner together to address issues of concern in that community in a way that puts a significant number of the unemployed and those who are on the relief rolls back to work.

He gives you six clear principles. He calls them six fundamental principles that govern all projects that will receive federal funding. The first is they've got to be useful. Now, useful is a great word because you can interpret it any way you want. We need post offices, right? So the WPA builds a boatload of post offices which are incredibly useful.

FDR signs the Executive Order creating the Federal One Programs. And the Federal One Programs are the Federal Writers Project, the Federal Theater Project, the Federal Dance Project, and the Federal Arts Project. It's useful because it puts people to work.

The second thing: "Projects shall be of a nature that a considerable portion of the money spent shall go into wages for labor." What this is saying is the money has to be targeted to workers and the auditing of the books will pay very close attention to that.

"In all cases, the project must be of a character to give employment to those on a relief roll." Sure, it's federal money and, sure, there're federal guidelines, but they're local projects. They're local projects that are set up by county boards, by school systems, by state agencies, and this, by and large, it's a compromise that FDR made to get it through because local groups think that they should control the money.

From its inception in 1935 until Congress withdraws funding for it in 1943, the WPA has an enormous impact on the United States. Seventy-five percent of this was targeted toward construction. Why? What we need is we need projects that will benefit the country, but that also will put huge numbers of Americans to work fast in ways that gives them new job skills. So let's take people that might have been janitors and let's teach them how to be carpenters. So let's not only construct, but let's have on-the-job training that will enhance people's job skills and make them more employable and give them more skills to which they can market themselves once they get off relief.

One of the ways that FDR changed the government was expanding the role the government had in managing the economy and he did this in several ways. He did this with the Banking Act, with the Emergency Banking Act, which set up standards, regulatory standards, practices for banks that banks had to meet in order to be federally insured.

Let's look at the National Labor Relations Act or the Wagner Act. This said, for the first time in our history, the first time, that it was legal for a worker to join a trade union.

Then let's look at Social Security. The government began to set up a retirement system for the American public. What FDR hoped would happen would be a three-pronged stool of Social Security payments, corporate retirements or, you know, company pensions, and individual savings.

The other thing that FDR did was with the income tax, with the graduated income tax. Have it taken out of your paycheck rather than having you to have to write the check at the end of the year. So they really helped set a way to manage the cash flow of the federal government.

He also put the federal government in some cases in direct competition with private industry to spur private investment. So we have the federal government involved in almost every aspect of the American economy, from regulating the stock market and setting rules for how much you had to have in the bank to buy stocks on margin, what standards banks had to meet to be healthy, how you insured deposits in the bank, how you addressed the issues of over-production and under-consumption in the farm economy. How do you deal with the volatility of a skilled and unskilled labor force? How do you deal with labor conflict, organized labor conflict between labor and management? How do you deal with reforming the income tax system and how do you deal with the federal government controlling the way that monies are spent in the states.

So in many ways, what the New Deal did was establish the tax policy, the wage policy, the farm policy, the banking policy, the utility policy that govern modern America. When, you'd never have the Great Society. You'd never have public housing. You'd never have the National Endowment for the Humanities. You'd never have federal aid to education. You'd never have Medicaid and Medicare and Social Security indexed to the cost of living if you didn't have the New Deal because the New Deal is the bedrock. It's the platform upon which all modern government policies are based. Because the bottom line for this is that the New Deal said that the government had a role to play in propping up capitalism in a way that benefited the broadest number of Americans.

Ronald Reagan Presidential Foundation and Library

Image
Annotation

Established by Ronald Reagan, the Reagan Foundation preserves Presidential history and is "dedicated to the promotion of individual liberty, economic opportunity, global democracy, and national pride." Its online presence provides both primary and secondary sources on the life and presidency of Reagan.

Visitors can follow a timeline of Reagan's life in Life and Times, and read five short essays (800–1,000 words) on his domestic, foreign, and economic polices, Mikhail Gorbachev, and "Reagan the Man" in The Presidency. Search or browse Reagan's speeches, with both transcripts and video recordings and search or browse quotes drawn from his speaking in Reagan Quotes and Speeches. The entries of his White House Diary from 1981–1989 may also be browsed, and a separate subsection on Nancy Reagan provides a timeline of her life and brief essays on her relationship with Ronald Reagan and her political causes.

The Reagan Foundation's Archives make only a fraction of their holdings available online. However, visitors can access fast facts on Reagan and his presidency; browse a selection of photos of the President and the First Lady, organized by topic; or search or browse (by month) the Public Papers of President Ronald W. Reagan, which includes statements, speeches, and papers released by the Office of the Press from 1981–1989.

The Archives' For Educators section includes several document-based lesson plans, as well as curriculum based on current museum exhibits.

Useful for educators looking for both introductory material to Reagan and his presidency and more specific primary sources.

Seattle General Strike Project

Image
Annotation

The Metal Trades Council Union alliance in Seattle shut down the shipyards on February 6, 1919, in hopes of forcing a promised pay increase following the strict price controls set during World War I. After the Metal Trades Council obtained the support of Seattle's Central Labor Alliance, more than 65,000 Seattle workers staged a sympathy walkout, creating what has come to be known as the first "general strike" in U.S. history, and laying the foundation for labor unrest in the nation's steel, coal, and meatpacking industries in the years that followed.

This website documents the history of this strike through a large collection of primary and secondary source materials.

A four-minute video introduction, containing original film footage from 1919, is a useful place to begin for those unfamiliar with Seattle's labor history.

The website also includes contemporary and more recent newspaper articles, including more than 180 articles from Seattle's major newspapers covering the February 1919 events; 15 oral histories; more than 30 photographs of labor activity in Seattle, prominent union members, and strike activities; as well as research reports on the strike by history students at the University of Washington.