These days, the names of such outstanding personalities as Bernard Arnault, Elon Musk, and Jeff Bezos are firmly associated with incredible wealth and enormous influence on the world. Bernard Arnault, the owner of luxury brands like Louis Vuitton, became the first person in history whose fortune exceeded $200 billion. Elon Musk, whose technological achievements at Tesla and SpaceX changed the future of entire industries, has repeatedly topped the list of the richest people on the planet. And Jeff Bezos, the founder of Amazon, turned a small startup into one of the largest online stores. But have you ever wondered who became the world's first millionaire? How did he manage to accumulate such an incredible fortune back then?
The world's first dollar millionaire made his fortune in oil. Image source: pinterest.com
Contents
- 1 The very first millionaire in history
- 2 Childhood of John Rockefeller
- 3 How John Rockefeller got rich
- 4 How the Rockefeller dynasty came to be
The very first millionaire in history
Rich people have always existed throughout human history. For example, Egyptian pharaohs possessed gold, vast territories, and other valuables. The same can be said about ancient Roman emperors. However, it is difficult to estimate how much money they had by modern standards, so they cannot be called the first millionaires in the world.
Perhaps the Egyptian pharaohs were richer than the Rockefellers, but we can't say for sure. Image source: artstation.com
Officially, the world's first millionaire is considered to be John Rockefeller. He made a lot of money selling oil and started a whole dynasty of rich people that exists to this day.
John Rockefeller's Childhood
John Rockefeller was born on July 8, 1839, in New York City and was raised by very unusual parents. His father, William Rockefeller, was a cheerful and risky man who often got involved in dubious projects. Sometimes he would disappear for months at a time, and return either with money or without a cent in his pocket.
John's mother, on the other hand, was a strict, religious and incredibly thrifty woman. It is believed that she taught her son hard work and savings, which later became key factors in his success.
John D. Rockefeller in 1875, when he was 36 years old. No photos of him at a younger age could be found. Image source: wikipedia.org
Despite his father's fickleness, John learned to handle money from childhood. William often deceived his children in transactions to accustom them to adult life. This, as well as his mother's upbringing, helped John develop a combination of prudence and hard work.
Surprisingly, John Rockefeller did not receive a higher education – his father was sure that the ability to count and keep accounts was enough for success. At the age of 16, Rockefeller began working in an office, and three years later he founded his own organization, which was engaged in the trade of grain and other products.
Ultimately, it turns out that the foundation for becoming the world's first millionaire was laid in John Rockefeller from childhood.
How John Rockefeller Got Rich
The first millionaire in human history made his fortune selling oil. A number of fortunate circumstances greatly contributed to John Rockefeller's success.
In the late 1850s, the first oil well was drilled in Pennsylvania, starting the oil boom in the United States. John D. Rockefeller, quickly recognizing the potential of this new resource, began shipping oil and kerosene with his partners.
John Rockefeller at age 56. Photo source: wikipedia.org
Oil production was a risky business, so Rockefeller decided to focus on refining, which seemed more stable and profitable. Over time, he bought out the oil business from his partners, offering $72,500 at auction – a huge sum at the time. This was the beginning of his success in life.
In 1870, Rockefeller founded Standard Oil— a company that began to control not only oil refining and transportation, but also the production of barrels and even the management of a fleet of tankers. John negotiated discounts on transportation and actively bought up competitors (he even enlisted the support of the mafia), gradually creating a monopoly on the market. At that time, oil was needed to produce kerosene, the main source of light in homes. Standard Oil ensured stable product quality, which other companies could not offer.
Standard Oil is John Rockefeller's most important company. Photo source: pinterest.com
By the 1880s, Standard Oil controlled more than 90% of the US oil market, which attracted criticism from the public and the government. Rockefeller was accused of unfair business practices, including bribery and pressure on competitors. In 1911, a US court ordered Standard Oil to be broken up into 38 different entities, but this had little effect on his wealth – the market was simply divided between the new entities.
Although Rockefeller was often seen as a symbol of ruthless capitalism, he was an active philanthropist, donating huge sums to education, medicine, and science.
Read also: What determines the price of oil and how does it affect people's lives?
How the Rockefeller dynasty came about
John Rockefeller Sr. left behind a huge fortune, which passed to his only son, John Rockefeller Jr. Unlike his parent, John Jr. was not so keen on business. His attention was focused on managing family affairs and charity.
Despite his little interest in business, he was the one who was able to significantly increase the family's capital. This was possible due to the fact that during the world wars the need for fuel and other materials increased greatly.
John Rockefeller with his son. Photo source: facts.museum
John Jr. created a family wealth management system that allowed capital to be preserved and increased over several generations. He opened a special office to manage the family's assets and established a tradition of family meetings where important issues were discussed and resources were allocated. This system contributed to the strengthening of the Rockefeller dynasty and also provided wealth for future generations.
Remarkably, John D. Rockefeller Sr. did not insist that his son continue the business. He allowed John Jr. to choose his own path, focusing on family management and philanthropy. This decision proved to be key to the longevity of the family fortune, and the Rockefellers' example inspired many other wealthy families to implement similar management systems.
John Rockefeller's grandchildren. Photo source: Marty Lederhandler/AP
The Rockefeller dynasty is one of the most influential and wealthy families in history. Their success was the result not only of bold decisions and a lucky coincidence, but also of the ability to preserve capital for future generations.
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