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Andrew carnegie and The Gospel of Wealth

Andrew Carnegie, steel magnate, has the prototypical rags-to-riches story. Although such stories resembled more myth than reality, they served to encourage many Americans to seek similar paths to fame and fortune. In Carnegie, the story was one of few derived from fact. Born in Scotland, Carnegie immigrated with his family to Pennsylvania in 1848. Following a brief stint as a “bobbin boy,” changing spools of thread at a Pittsburgh clothing manufacturer at age thirteen, he subsequently became a telegram messenger boy. As a messenger, he spent much of his time around the Pennsylvania Railroad office and developed parallel interests in railroads, bridge building, and, eventually, the steel industry.

Ingratiating himself to his supervisor and future president of the Pennsylvania Railroad, Tom Scott, Carnegie worked his way into a position of management for the company and subsequently began to invest some of his earnings, with Scott’s guidance. One particular investment, in the booming oil fields of northwest Pennsylvania in 1864, resulted in Carnegie earning over $1 million in cash dividends, thus providing him with the capital necessary to pursue his ambition to modernize the iron and steel industries, transforming the United States in the process. Having seen firsthand during the Civil War, when he served as Superintendent of Military Railways and telegraph coordinator for the Union forces, the importance of industry, particularly steel, to the future growth of the country, Carnegie was convinced of his strategy. His first company was the J. Edgar Thompson Steel Works, and, a decade later, he bought out the newly built Homestead Steel Works from the Pittsburgh Bessemer Steel Company. By the end of the century, his enterprise was running an annual profit in excess of $40 million ( [link] ).

An illustration shows the Carnegie Steel Works factory. The text reads “Carnegie Steel Works, (Ohio Works), Youngstown, Ohio.”
Andrew Carnegie made his fortune in steel at such factories as the Carnegie Steel Works located in Youngstown, Ohio, where new technologies allowed the strong metal to be used in far more applications than ever before. Carnegie’s empire grew to include iron ore mines, furnaces, mills, and steel works companies.

Although not a scientific expert in steel, Carnegie was an excellent promoter and salesman, able to locate financial backing for his enterprise. He was also shrewd in his calculations on consolidation and expansion, and was able to capitalize on smart business decisions. Always thrifty with the profits he earned, a trait owed to his upbringing, Carnegie saved his profits during prosperous times and used them to buy out other steel companies at low prices during the economic recessions of the 1870s and 1890s. He insisted on up-to-date machinery and equipment, and urged the men who worked at and managed his steel mills to constantly think of innovative ways to increase production and reduce cost.

Carnegie, more than any other businessman of the era, championed the idea that America’s leading tycoons owed a debt to society. He believed that, given the circumstances of their successes, they should serve as benefactors to the less fortunate public. For Carnegie, poverty was not an abstract concept, as his family had been a part of the struggling masses. He desired to set an example of philanthropy for all other prominent industrialists of the era to follow. Carnegie’s famous essay, The Gospel of Wealth , featured below, expounded on his beliefs. In it, he borrowed from Herbert Spencer’s theory of social Darwinism    , which held that society developed much like plant or animal life through a process of evolution in which the most fit and capable enjoyed the greatest material and social success.

Questions & Answers

What does chasquis mean?
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Maria
chasquis (also chaskis) were the messengers of the Inca empire. Agile, highly trained and physically fit, they were in charge of carrying the quipus, messages and gifts, up to 240 km per day through the chasquis relay system.
NAEEM
How did imperialism Effect America
Melinda Reply
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The Reply
what major industries emerged in the decades after the Civil war
ComicHickory Reply
Does militia men still exist in U.S.A?
Shakeel Reply
To contrast the steamboat of the antebellum to today’s technology?
Nyrah Reply
contrast the steamboats of the antebellum years with technologies today.
Nyrah
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sunny
what advantages did people in urban areas have over rural areas?
HAILEY Reply
what factors helped cause the dust bowl
HAILEY
They had easy availability of food water. They had more comfortable life style as compare to people in rural areas. Better education was at there disposal
Shakeel
why did northerners lose thier resolve to pursue reconstruction
bambi Reply
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Isnt there any laws in place for gun control?
Ryan Reply
How would you characterize the former president’s reaction? What do you think he means by writing that the Missouri Compromise line “is a reprieve only, not a final sentence”?
Tonda Reply
Compare and contrast the steamboats of the antebellum years with technologies today. In your estimation, what modern technology compares to steamboats in its transformative power?
Tonda Reply
airplanes to jets. Another would be electric trains.
Darren
I would say the Internal Combustion engine was as if not more transformative the the Steam power which it replaced. The ability of the Steamboat to rapidly move large amounts of goods through the water ways that weave there way from town to town increased our fledgling country's economy. I can draw direct coraleris with the National highway system built during the 1950's that were soon clogged with Transport trucks using I.C.E.
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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