How Did Rockefeller Build The Economy During The Gilded Age

“The old nations of the earth creep on at a snail’s pace; the Republic thunders past with the rush of the express. The United States, the growth of a single century, has already reached the foremost rank among nations, and is destined soon to out-distance all others in the race. In population, in wealth, in annual savings, and in public credit; in freedom from debt, in agriculture, and in manufactures, America already leads the civilized world.” -Andrew Carnegie. The early 1900s were a time of great prosperity for the United States of America especially in two areas, oil and steel. These two industries grew and pushed the country into the Industrial Age, or sometimes known as the Gilded Age. This era was so profitable because circumstances

Rockefeller established an oil refinery near Cleveland. Within the first two years it was the largest in the area. Eventually, after many successes in the industry, Rockefeller turned his full attention to the oil business. In 1870, Rockefeller and his partners started the Standard Oil company. This business immediately began making money, partly because of the favorable economic conditions and partly because of Rockefeller’s drive to streamline the company’s operations and keep margins high. Standard also began buying out its competitors. It eventually controlled the majority of refinery’s in the Cleveland area within two years and then used its size to make favorable deals with the railroads for shipping. At the same time, Standard expanded its business by buying pipelines and terminals, setting up a system of transport within the company. Standards grip on the oil industry tightened and they eventually bought thousands of acres of forest for lumber, drilling and to block competitors from building their own pipelines. Standard continued expanding their business by purchasing competitors in other regions

“Rockefeller so enjoyed business that he dreamed about it at night.” He was so focused on work that within a decade he commanded most of the oil in the United States and he did this through perseverance and passion. However, he didn’t do what he did to make money, he was very philanthropic and gave much of his earnings to charitable organizations. “He believed in The Law of Tenfold Return, i.e. if he gave happily, joyfully and confidently then for every dime he gave away he would receive a dollar, happy, joyfully and confidently, in return from providence.” He started a habit of giving as a young boy in the Baptist Church with his mother. In certain respects it can be said that even in developing Standard Oil it was for the benefit of the poor. Rockefeller said, “Let the good work go on. We must remember we are refining oil for the poor man and he must have it cheap and good.” Prior to Rockefeller and the byproducts of his refineries, only the rich benefitted from things such has oil lamps. After he took control of the oil industry he was able to provide for low-income family’s and he gave them what the rich had at reasonable prices. He thought of everyone in his work, the poor and the rich. He created an industry that serviced the lowest of the low the same way it serviced the higher ranking people. He grew his company to allow people to create a life for