I was fortunate to catch snippets of last Wednesday's marathon of the series “The Men Who Built America†on the History Channel. As I watched, I was so moved by what these people - John Rockefeller, Andrew Carnegie and J.P. Morgan - moved and even manipulated their companies to become the titans of the late 18th century, effectively building America to what it is today, the most industrialized and modern nation on the planet. Their wealth at the time, if valued at today's money, is absolutely staggering. We're talking hundreds of millions of dollars at a time when houses were lit by gas lamps, people moved around in horse-drawn carriages and the train was the fastest and most modern means of transportation!
But Steve Wynn, a modern day tycoon who brought Las Vegas back to life in the 90s, hit the nail on the head when he said that after looking closely, you may not like what you see after the fact. Indeed, the only way these titans - Rockefeller, Carnegie and Morgan - made their immense wealth was because they prioritized profit over everything else. Labor laws were non-existent, anti-trust laws were still being drafted, hostile takeovers were the norm. Money drove all of these, even politics, as the three became the most wealthy and influential people in the US. One of the very first bailouts, a move so common today, was done by J.P. Morgan himself, on America!
A century ago, the only way to become a millionaire quickly was to think of yourself, establish a monopoly and nothing else. This was the reason working conditions were appalling, even dangerous as deaths in factories were commonplace. There was no minimum wage, so workers were paid what the company offered, take it or leave it. Which makes me think of the garments building that collapsed in Bangladesh, where the death toll has surpassed five hundred and may even go higher. America may have all the labor and anti-trust laws in place, but some countries do not, hence the term “outsourcingâ€. Sweat shops like the ones in Bangladesh, where even children are employed, have sprouted like mushrooms. Rich, branded companies have outsourced their products to countries like Bangladesh to produce their products, cheaply. Just like the titans of old, have they prioritized profit over everything else, even the safety of its workers?
It seems that this is the way to make money, fast, just like the late 1800s. There are still those in the world that will work and agree to be paid pittance, and even work in dangerous conditions. Cash is king, and the companies know it, and use it. We do have modern-day Rockefellers, Carnegies and Morgans. But instead of oil, steel and electricity, we have garments particularly high fashion, appliances and electronics. So the next time you wear that four thousand peso shirt, or buy that new smartphone or laptop, think of where and who built them. You may be making another titan rich beyond his imagination, at the expense of an inconsequential worker. Something pioneered by men who built, or bled, America!