Pros And Cons Of Robber Barons

America's greatness, result of Capitalism

When people think of capitalism many think of a greedy, money hungry, overweight man. Capitalism obtained a bad reputation that goes back to the mid 19th century. The stereotype is a product of robber barons; the people that created large amounts of wealth by participating in unfair business practices. Robber barons are one reason for which society perceives wealthy people as uncaring, rude, and selfish. They are known for having unethical businesses that corrupted the government and took advantage of both the consumer and the worker (Mises Institute). The truth is that although many of the conceptions of corrupt ancient business owners is true, capitalism is the best economic system in existence as well as the most moral oriented. Capitalism is what made the United States to most powerful and wealthiest nation in the world.

In order to understand how capitalism works, first we need to understand what it is. Capitalism

Capitalism works because it is controlled by individuals and not by the government. When an official is elected in a democratic system, he has power to make decisions for the well-being of the state or nation. He or she doesn't have direct responsibility over a decision, he can always blame other people. Bureaucrats also have different incentives for when they have to power of companies or assets. For example, in the 1840's the telegraphs were born but it was agreed for the government to own and operate the telegraph. For many years the government was losing money with this new invention. It wasn't until it was given back to private investors that the telegraph was a success and America created a transcontinental line of communication in 1852. This and many other achievements are thanks to capitalism. Capitalism is "responsible for the greatest reduction in human misery."