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NEW YORK
PRESENT DAY

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"There's class warfare alright,

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but it's my class,
the rich class, that's making war,

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and we're winning."

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Warren Buffet, billionaire.

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This is the story of a system

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centred around
the quest for individual profit

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and free enterprise.

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Within such a system, the
concentration of ever more wealth

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in the hands of just
a few is inevitable.

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To regulate this system,

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the USA once decided
to prohibit monopolies

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and to tax the wealthy.

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But over the past 40 years or so,

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capitalism in the USA
seems out of control.

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Extraordinary
concentrations of wealth

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have accumulated
in all sectors of the economy,

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paralysing all competition,

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without any tangible
response from the authorities.

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The country's 722 billionaires

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and 22 million millionaires

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now entirely legally

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pay less tax than their secretaries.

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A situation that is so grotesque
that even some millionaires

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have spoken out against it.

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What we need to do,

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for the sake of the country,

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is to tax folks

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like ourselves more.

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But such a suggestion is met
with a highly telling reaction

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when these millionaires
are speaking to presenters

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who are millionaires themselves.

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We are all feeling like

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- we could pay more tax.
- So why don't you pay more?

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- Why don't you?
- It doesn't work.

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It works when the collective
does it, that's the point.

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No, it works when you force
people like me to pay more.

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I don't want to pay any more!
I pay enough already!

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Why don't you pay?

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Over four decades

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the rich have seized
control of America.

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Or, more accurately, they
have regained control over it.

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But our story begins
120 years earlier.

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This evening, New York's
400 richest families

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will attend a costume ball,

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imitating Europe's aristocracy.

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The Astoria,
the city's grandest hotel,

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has been booked out
for the occasion.

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According to The New York Times,
the budget for this gala event

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could feed 6,000 New York
families for a whole year.

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Police are concerned
by this revelation,

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given that many New Yorkers
are forced to go hungry.

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The city enlisted
800 police officers

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to control the plebs
who had come to the hotel

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to see the upper classes

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in their costumes and wigs.

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"There are no guillotines allowed
at the Astoria this evening",

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quipped one guest,

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"but there are at least
50 Marie-Antoinettes."

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After nibbling at
their 28-dish menu,

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knocking back 4,000 bottles
of Moët et Chandon

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and partying until
the wee small hours,

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the revellers left
a trail of destruction

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for the cleaning staff to deal with.

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In a little over 20 years,

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a new class of millionaires
had seized control of America,

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and they had no
intention of giving it up.

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Among the millionaires
featured in this caricature

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are the three most powerful
men in America at the time.

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The first of these

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was John D. Rockefeller,

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the world's richest man.

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He started out
by buying Standard Oil,

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a small oil refinery
in Cleveland, Ohio,

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for just a few thousand dollars.

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Cleveland had around
30 or so refineries at that time,

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but this was bad for profits,

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and Rockefeller wanted rid of them.

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He made, shall we say,

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a discreet arrangement
with the rail company

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which took oil from Cleveland
to the big cities of the north.

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With Standard Oil's oil

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now cheaper to transport
than that of its competitors,

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Rockefeller was able
to slash his prices.

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Within two years, Standard Oil
had bought out or swept aside

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every other refinery in Cleveland.

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Before long, this behemoth

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was in control of 90%
of all oil in the USA.

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With this monopoly in place,

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Rockefeller was able
to raise his prices again.

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The New York Times 27 December 1883.

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John D. Rockefeller's fortune

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is estimated at 129 million dollars.

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The head of the largest
monopoly in America,

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more powerful than
the government itself,

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no information has escaped
on the methods he employs

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in order to steal from the public.

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For imposing this monopoly on them,

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Rockefeller was
America's most hated man.

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Holed up in
his mansion in Cleveland,

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a Bible never far from his reach,

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he didn't believe
he had to answer to anyone

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other than God.

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The New York Times 2 January 1885.

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Mr Carnegie
has stated that socialism

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is the most wonderful of theories.

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"If you are a socialist",
objected one journalist,

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"then why did you close
the Thomson steelworks

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and force workers into poverty?"

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"That was the workers' fault",
answered Carnegie.

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"They wouldn't agree to a wage cut."

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Andrew Carnegie, the king of steel.

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Born into poverty in Scotland,

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he emigrated to the USA aged 13.

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Director of a railway company
by the age of 29,

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he was the archetypal self-made man.

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Carnegie embodied a narrative

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that was found in countless
popular novels of the time,

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according to which, in America,

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anyone could become a millionaire.

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His real entry into business

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came when he built a steelworks
in the suburbs of Pittsburgh

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that would produce
the best steel in the world.

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This was the first of many sites

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on which his metallurgical
empire would be built.

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Driven by the railways,

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steel was a highly lucrative market.

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But Carnegie had
his sights set further.

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He was convinced that,
using his steel,

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American cities
would soon become vertical,

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reaching up into the sky.

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Meanwhile, Pittsburgh
continued to expand.

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Andrew Carnegie
enjoyed remarkable success.

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And it made him think.

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What meaning was there
to his vast wealth?

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Why him and not someone else?

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He outlined his thinking in a book

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that would go on to become
a smash hit in the USA:

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The Gospel of Wealth.

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"Inequality is natural

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and even beneficial", he explained,

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"because only
the most capable grow wealthy.

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But the millionaire has a duty
to put his fortune to good use.

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He must leave
nothing to his heirs,

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for heirs are not capable.

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The millionaire must
devote his entire fortune

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to the building of public libraries,

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the funding of
universities and hospitals,

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or any other philanthropic endeavour

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which they see fitting.

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The rich should be allowed
to grow as wealthy as possible

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so that they can
redistribute that wealth."

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Such was the Gospel
according to Carnegie.

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John D. Rockefeller has just
given one million dollars

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to the University of Chicago.

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Mr Rockefeller, in his
mortarboard and cap,

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was given an honorary degree,

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and his donation
was hastily accepted.

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The New York Times
19 September 1889.

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The Gospel of Wealth
was immediately adopted

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by America's millionaires.

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They believed it killed off
any debate on inequality

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as not everyone
was made to become rich.

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It also meant they
could flatter their pride

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by buying for themselves
the image of a benefactor.

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It also had the enormous merit
of leaving them to decide

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what was best for society.

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Philanthropy became
their national sport,

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the goal being to see
who could give the most.

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Newspapers published
annual rankings of donations.

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And not appearing in these rankings

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was out of the question.

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"If you have to ask how much
it costs, you can't afford it."

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John Pierpont Morgan.

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J. P. Morgan, the banker.

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The owner of a 160-foot yacht,

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he was often
caricatured as a naval officer.

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This was also because
nine out of ten migrants

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who came to America travelled
on a boat belonging to him.

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He used his nose,

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horribly deformed as a
result of a genetic disease,

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to intimidate people he dealt with.

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J. P. Morgan hated journalists,

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and hated photographers even more.

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He controlled marine transport,

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railways, electricity,
coal and the telegraph.

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The only things
he couldn't get his hands on

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were Carnegie's steel
and Rockefeller's oil.

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The reason for his power

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was that he was
the only American to have the trust

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of the banking communities
in London, Paris and Berlin.

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Reeled in by
the unbelievable profits

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on offer in America,

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they naturally turned
to him seeking to invest.

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Situated at 23 Wall Street,

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Morgan & Co Bank
was the cornerstone

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of America's industrial revolution,

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acting as a lender, a shareholder

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and the central bank for the USA.

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But it was from his home
at 231 Madison Avenue

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that J. P. Morgan
dealt with important matters.

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One day he invited over

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the owners of the railway companies,

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who were engaged in a price war

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that was disastrous for businesses.

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"Your companies
belong to my clients",

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he told them,

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before ordering immediate mergers

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in order to create
regional monopolies,

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thereby increasing
prices and profits.

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But despite millionaires
being all-powerful,

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the USA was a democracy,

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centred around two main parties.

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The Republican Party
was the party of Lincoln,

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who had abolished slavery.

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It was seen as being
the party of the industrialists

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and the business world.

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The Democrat Party
was sort of everyone else.

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Its core base was
in the segregationist south,

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but it also had a strong
following in New York.

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Another millionaire in the Senate.

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Mr Price had never been a politician

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until a place opened up for him.

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And so he bought that place,

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just as he would have
a box at the opera, a yacht,

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or any other luxury
item which he can afford.

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The New York Times 17 January 1890.

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The United States Senate,
elected by direct suffrage,

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had become a club for millionaires

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who, whether Democrat
or Republican,

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blocked any legislation that
went against their interests.

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This enabled them to build
a paradise for the wealthy,

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where there was no income tax,

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no tax on company profits

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or inheritance, no labour laws,

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no right to strike,
and no control over the banks.

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This paradise benefited from
a constant stream of immigrants,

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welcomed with open arms
by the industrialists.

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Capable of being exploited at will,

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they were pulled by the two
main promises of the American dream:

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freedom and prosperity.

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The USA was then struck
by a terrible economic crisis.

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Industrialists sacked
employees left, right and centre,

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slashing wages.

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Unions used strikes

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in an attempt to bring
about collective bargaining.

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But the police were
on the side of the bosses,

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and were ruthless
in their repression.

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And when the police were overrun,
the army brought out their bayonets.

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Without a second's hesitation,

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Carnegie ordered shots to be fired
at the workers at his steelworks

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in Pittsburgh to prevent
a union being formed.

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Fifteen workers were killed,
but the philanthropist maintained

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that he had simply been
defending his property.

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JACOB RIIS
JOURNALIST

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But some journalists
and intellectuals

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were starting to speak out against
the violence of American capitalism.

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HENRY GEORGE
ECONOMIST

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00:19:42,120 --> 00:19:44,440
They represented
a new school of thought:

260
00:19:44,600 --> 00:19:47,520
progressivism.

261
00:19:49,760 --> 00:19:52,000
JANE ADDAMS
SOCIAL WORKER

262
00:19:52,160 --> 00:19:55,080
The progressives contested
the right of American millionaires

263
00:19:55,240 --> 00:19:57,400
to accumulate wealth with impunity,

264
00:19:59,040 --> 00:20:01,600
like aristocrats who owed nothing

265
00:20:01,760 --> 00:20:03,680
to the rest of society.

266
00:20:03,840 --> 00:20:05,040
THORSTEIN VEBLEN
SOCIOLOGIST

267
00:20:07,000 --> 00:20:09,440
ROBERT LA FOLLETTE
GOVERNOR OF WISCONSIN

268
00:20:09,600 --> 00:20:12,920
They had support from politicians
sick of the grip millionaires had

269
00:20:13,080 --> 00:20:15,040
over American democracy.

270
00:20:18,880 --> 00:20:21,200
The progressives
shared the same disbelief

271
00:20:21,360 --> 00:20:23,240
at the levels of social distress

272
00:20:23,400 --> 00:20:25,960
that were seen
in such a wealthy country.

273
00:20:32,160 --> 00:20:34,800
They were particularly outraged
by the mass exploitation

274
00:20:34,960 --> 00:20:37,800
of children,
sacrificed in the name of profit.

275
00:20:41,600 --> 00:20:44,880
On the eve of the 1896
presidential election,

276
00:20:45,400 --> 00:20:48,080
the progressive movement
called on all candidates

277
00:20:48,800 --> 00:20:51,320
to put an end to
the tyranny of the millionaires.

278
00:21:12,800 --> 00:21:15,120
For the first time,
one of the two main parties

279
00:21:15,280 --> 00:21:18,760
decided to draw on the social
unrest within the country.

280
00:21:23,680 --> 00:21:27,040
The democrat candidate,
William Jennings Bryan,

281
00:21:27,200 --> 00:21:28,600
incorporated the demands

282
00:21:28,760 --> 00:21:31,480
of the unions and the progressives
into his manifesto.

283
00:21:31,640 --> 00:21:34,040
In return, they called
on everyone to vote for him.

284
00:21:36,680 --> 00:21:39,960
This included 8-hour days,
nationalising the railways,

285
00:21:40,120 --> 00:21:43,200
controls on banking,
dismantling monopolies

286
00:21:43,360 --> 00:21:46,160
and bringing in
income taxes for the rich.

287
00:21:49,680 --> 00:21:52,800
Bryan spent months
crisscrossing the United States.

288
00:21:53,240 --> 00:21:57,200
America had to choose between
reforming or perpetuating

289
00:21:59,360 --> 00:22:02,040
a system that had been
corrupted by millionaires.

290
00:22:05,240 --> 00:22:08,200
Bryan's campaign
sowed seeds of panic

291
00:22:08,360 --> 00:22:09,680
among the millionaires.

292
00:22:10,400 --> 00:22:13,560
For the first time, democracy
was threatening their privileges.

293
00:22:21,000 --> 00:22:24,000
There were even some serious
drawing room discussions

294
00:22:24,160 --> 00:22:26,760
on the subject
of universal suffrage.

295
00:22:30,280 --> 00:22:32,280
What made the millionaires
all the more anxious

296
00:22:32,440 --> 00:22:35,520
was that the Republican
candidate William McKinley

297
00:22:35,680 --> 00:22:37,160
was conducting a listless campaign

298
00:22:37,320 --> 00:22:39,880
from his home in Canton, Ohio.

299
00:22:42,400 --> 00:22:44,000
But his campaign manager,

300
00:22:44,160 --> 00:22:47,040
businessman Mark Hanna,
had a strategy.

301
00:22:47,920 --> 00:22:50,640
"There are two things
that are important in politics.

302
00:22:52,080 --> 00:22:54,960
The first is money and I can't
remember what the second one is."

303
00:22:57,000 --> 00:23:00,560
Mark Hanna did a tour of the
wealthiest people in the country,

304
00:23:00,720 --> 00:23:02,800
telling them that,
"the Republican Party

305
00:23:02,960 --> 00:23:06,280
is there to defend your interests,
but that doesn't come for free."

306
00:23:08,000 --> 00:23:11,360
Carnegie was more than happy
to fund the Republican candidate

307
00:23:11,520 --> 00:23:13,560
against those who wanted
- as he saw it -

308
00:23:13,720 --> 00:23:15,560
to kill the goose that
laid the golden eggs.

309
00:23:18,080 --> 00:23:20,520
J. P. Morgan also put
his hand in his pocket

310
00:23:20,680 --> 00:23:23,160
and called on other
bankers to follow suit.

311
00:23:25,720 --> 00:23:27,120
Rockefeller, meanwhile,

312
00:23:28,080 --> 00:23:30,440
was Rockefeller. As ever,

313
00:23:30,600 --> 00:23:33,440
he saw it as a source of pride
to be the one to give the most.

314
00:23:37,120 --> 00:23:39,720
Thanks to Mark Hanna,
there was no shortage of money

315
00:23:39,880 --> 00:23:42,080
in support of
the Republican candidate.

316
00:23:42,520 --> 00:23:46,240
McKinley raised seven times
as much as his Democrat opponent.

317
00:23:50,320 --> 00:23:52,720
The Republicans were
able to organise the biggest

318
00:23:52,880 --> 00:23:55,920
political marketing campaign
ever seen in the USA,

319
00:23:56,600 --> 00:23:58,800
featuring simple
and effective messages:

320
00:23:59,560 --> 00:24:01,640
"Commerce", "Civilisation",

321
00:24:02,560 --> 00:24:05,680
and the overarching
promise of "Prosperity".

322
00:24:08,160 --> 00:24:10,080
To inspire trust among voters,

323
00:24:10,240 --> 00:24:13,200
Mark Hanna decided
to film McKinley at his home,

324
00:24:13,360 --> 00:24:16,320
showing him as
a calm and collected figure.

325
00:24:17,400 --> 00:24:21,000
In doing so he created the world's
first ever campaign video.

326
00:24:24,360 --> 00:24:25,600
The day after the election

327
00:24:25,760 --> 00:24:28,960
most of America
was coloured Democrat blue

328
00:24:29,320 --> 00:24:31,440
in favour of reforms to capitalism.

329
00:24:31,920 --> 00:24:34,880
The areas in grey were not
yet states and so didn't vote.

330
00:24:36,280 --> 00:24:39,960
California, Oregon and
the industrial north-east,

331
00:24:40,120 --> 00:24:41,920
the most populous part of America,

332
00:24:42,080 --> 00:24:44,520
were all Republican red.

333
00:24:46,920 --> 00:24:49,040
This was reflected by more electors,

334
00:24:49,200 --> 00:24:51,800
leading to a crushing
victory for the Republicans:

335
00:24:52,560 --> 00:24:55,280
271 to 176.

336
00:24:57,080 --> 00:24:59,040
The millionaires had won.

337
00:25:05,440 --> 00:25:07,720
Most recent immigrants

338
00:25:07,880 --> 00:25:11,560
lived in the major cities
of the industrial north.

339
00:25:16,080 --> 00:25:19,040
They voted en masse
for the Republican slogan

340
00:25:20,080 --> 00:25:21,320
of prosperity.

341
00:25:24,920 --> 00:25:27,440
While the business community
enthusiastically applauded

342
00:25:27,600 --> 00:25:30,160
President McKinley's
inaugural address,

343
00:25:30,320 --> 00:25:33,600
the Democrat Party dropped
its electorally suicidal position

344
00:25:33,960 --> 00:25:36,320
of wanting to change the system.

345
00:25:46,280 --> 00:25:48,560
That same year, Admiral cigarettes

346
00:25:48,720 --> 00:25:52,080
came up with the first
ever filmed advert.

347
00:26:26,560 --> 00:26:30,320
Miss Abby Aldrich, the daughter
of senator Nelson Aldrich,

348
00:26:30,480 --> 00:26:32,080
and John Rockefeller Junior,

349
00:26:32,240 --> 00:26:34,400
the only son of John Rockefeller,

350
00:26:34,560 --> 00:26:36,080
were married today

351
00:26:36,240 --> 00:26:38,880
at the home of Senator Aldrich.

352
00:26:40,480 --> 00:26:43,040
Both Rockefeller Junior
and his young bride

353
00:26:43,200 --> 00:26:46,080
are passionate about philanthropy.

354
00:26:46,800 --> 00:26:49,920
The New York Times 10 October 1901.

355
00:26:53,200 --> 00:26:56,160
Nelson Aldrich,
now Junior's father-in-law,

356
00:26:56,320 --> 00:26:59,880
was the imposing leader of the
Republican majority in the Senate.

357
00:27:01,520 --> 00:27:04,880
No federal law could be
passed without his consent.

358
00:27:07,360 --> 00:27:09,600
He was so powerful
that newspapers dubbed him

359
00:27:09,760 --> 00:27:11,960
"the general manager of the nation."

360
00:27:15,280 --> 00:27:18,040
Through their children's marriage,
the world's richest man

361
00:27:18,200 --> 00:27:20,680
and the most influential
politician in Washington

362
00:27:20,840 --> 00:27:23,920
were pursuing
a traditional class strategy,

363
00:27:26,640 --> 00:27:29,800
and laying the foundations for
a dynasty that would rule America

364
00:27:29,960 --> 00:27:31,280
for generations.

365
00:27:36,000 --> 00:27:37,720
Out of Rockefeller's grandchildren,

366
00:27:37,880 --> 00:27:39,960
three would go on to be governors,

367
00:27:40,120 --> 00:27:42,760
one the head of America's
largest investment bank

368
00:27:42,920 --> 00:27:44,800
and one vice-president of the USA.

369
00:27:46,200 --> 00:27:49,000
Naturally, all were
big philanthropists.

370
00:27:54,920 --> 00:27:57,040
While this was happening,

371
00:27:57,200 --> 00:28:00,880
Morgan enquired about
taking over Carnegie's steel empire.

372
00:28:02,440 --> 00:28:04,160
The two titans held a meeting.

373
00:28:06,560 --> 00:28:09,880
Carnegie passed Morgan a sheet
of paper with his price on it.

374
00:28:10,400 --> 00:28:12,480
480 million dollars.

375
00:28:12,640 --> 00:28:15,040
This was more than
Rockefeller's fortune.

376
00:28:17,160 --> 00:28:20,360
"Congratulations, Andrew, you are
now the richest man in the world",

377
00:28:20,520 --> 00:28:22,960
was Morgan's reply,
without even negotiating.

378
00:28:26,040 --> 00:28:29,480
"You would have paid 100 million
more, wouldn't you John?"

379
00:28:31,320 --> 00:28:32,760
"That's correct, Andrew".

380
00:28:33,520 --> 00:28:34,840
And so it came to pass.

381
00:28:36,000 --> 00:28:38,680
Newly retired,
the world's richest man

382
00:28:38,840 --> 00:28:41,400
could focus all of
his attentions on philanthropy,

383
00:28:42,240 --> 00:28:44,880
and was hailed
as a benefactor wherever he went.

384
00:28:48,440 --> 00:28:51,880
As for J. P. Morgan,
he got down to his favourite game,

385
00:28:52,440 --> 00:28:54,480
merging Carnegie's former empire

386
00:28:54,640 --> 00:28:56,600
with other steel companies,

387
00:28:56,760 --> 00:28:59,240
giving this new entity
the name US Steel.

388
00:29:08,400 --> 00:29:12,080
US Steel was on a scale that had
never been seen before in America.

389
00:29:15,240 --> 00:29:18,920
The company was valued at
1.5 billion dollars on Wall Street.

390
00:29:20,360 --> 00:29:22,040
With 213 factories,

391
00:29:22,200 --> 00:29:25,240
41 mines and 170,000 employees,

392
00:29:26,760 --> 00:29:29,480
US Steel produced
70% of America's steel,

393
00:29:30,520 --> 00:29:32,880
and Morgan had his sights
set on a total monopoly.

394
00:29:37,280 --> 00:29:39,360
The man he put in charge
of this behemoth

395
00:29:39,520 --> 00:29:42,600
was Charles Schwab,
a former employee of Carnegie

396
00:29:42,760 --> 00:29:44,400
and the first American employee

397
00:29:44,560 --> 00:29:46,800
to earn more than
one million dollars a year.

398
00:29:48,120 --> 00:29:51,480
Morgan then offered the newlywed
philanthropist, Rockefeller Junior,

399
00:29:51,640 --> 00:29:54,080
a seat on the board
of administrators.

400
00:30:06,960 --> 00:30:10,360
Thanks to steel, Manhattan
began to grow vertically.

401
00:30:15,880 --> 00:30:17,760
The first icon of this new New York

402
00:30:17,920 --> 00:30:21,080
was built at 175 Fifth Avenue:

403
00:30:25,680 --> 00:30:27,960
the Flatiron Building.

404
00:30:28,120 --> 00:30:29,840
87 metres tall,

405
00:30:30,360 --> 00:30:33,720
this architectural innovation
heralded many more.

406
00:30:38,640 --> 00:30:40,200
The Equitable Building,

407
00:30:40,360 --> 00:30:43,320
twin towers each 164 metres tall.

408
00:30:47,280 --> 00:30:50,400
Upon completion, its one million
square feet of space to rent

409
00:30:50,560 --> 00:30:52,240
suspended in the sky

410
00:30:52,400 --> 00:30:54,400
astounded even its own developers.

411
00:30:55,720 --> 00:30:58,800
"We've just created
a new continent", said one of them.

412
00:31:03,600 --> 00:31:06,520
At 187 metres, the Singer Building

413
00:31:06,680 --> 00:31:08,760
became the world's
tallest skyscraper,

414
00:31:10,920 --> 00:31:12,480
but only for a few months,

415
00:31:14,360 --> 00:31:17,720
before being dethroned
by the Metropolitan Life Tower,

416
00:31:17,880 --> 00:31:19,920
a vast building

417
00:31:20,080 --> 00:31:21,680
belonging to an insurance company

418
00:31:23,240 --> 00:31:26,800
which the owners decided to build
a 213-metre tall tower on top of.

419
00:31:31,640 --> 00:31:34,600
But the Metropolitan itself
was to be overtaken

420
00:31:34,760 --> 00:31:36,120
by the Woolworth Building,

421
00:31:36,280 --> 00:31:39,560
whose design was inspired
by Gothic cathedrals.

422
00:31:41,600 --> 00:31:44,040
This 241-metre-tall cathedral

423
00:31:44,200 --> 00:31:47,800
had 55 floors all used
exclusively for business.

424
00:31:58,600 --> 00:32:00,280
With this new skyline

425
00:32:00,440 --> 00:32:03,320
New York was sending a message
to the rest of the country:

426
00:32:04,000 --> 00:32:07,120
this is where things will
be happening from now on.

427
00:32:12,000 --> 00:32:14,160
Workers got a surprise

428
00:32:15,200 --> 00:32:18,520
when the Rubber Company,
a New York toy manufacturer,

429
00:32:18,680 --> 00:32:21,720
gave them
an additional week's wages.

430
00:32:22,400 --> 00:32:25,400
The New York Times 2 July 1902.

431
00:32:30,480 --> 00:32:34,120
New York was the setting for
the first large-scale experiment

432
00:32:34,280 --> 00:32:36,600
to prove that progressivism
and profit-making

433
00:32:36,760 --> 00:32:38,480
were not incompatible.

434
00:32:43,480 --> 00:32:45,960
Shoe manufacturer Endicott-Jonhson,

435
00:32:46,120 --> 00:32:47,760
which employed 10,000 New Yorkers,

436
00:32:47,920 --> 00:32:50,440
had such a problem
with staff quitting

437
00:32:50,600 --> 00:32:53,040
that productivity dropped
to dangerously low levels.

438
00:32:55,920 --> 00:32:57,880
In response, the boss Henry Endicott

439
00:32:58,040 --> 00:33:00,640
decided to introduce
an eight-hour working day

440
00:33:00,800 --> 00:33:03,760
and to increase wages. Just to see.

441
00:33:06,840 --> 00:33:09,320
Within a few weeks,
people had stopped quitting

442
00:33:09,480 --> 00:33:11,160
and the productivity of employees,

443
00:33:11,320 --> 00:33:14,760
who were working less
and earning more, went up.

444
00:33:19,920 --> 00:33:21,640
Endicott's profits, meanwhile,

445
00:33:21,800 --> 00:33:23,960
were higher than ever.

446
00:33:37,080 --> 00:33:39,320
The best workers in New York fought

447
00:33:39,480 --> 00:33:41,360
over jobs at Endicott's,

448
00:33:41,520 --> 00:33:43,320
where social harmony reigned.

449
00:33:46,320 --> 00:33:48,440
In a world where underpaying workers

450
00:33:48,600 --> 00:33:50,600
and opening fire on strikers

451
00:33:50,760 --> 00:33:53,360
were the only known methods
for earning tons of money,

452
00:33:54,440 --> 00:33:55,840
this was a revolution.

453
00:34:17,680 --> 00:34:20,880
But it was the birth of the car
that forced American capitalism

454
00:34:21,040 --> 00:34:23,200
into a decisive transformation.

455
00:34:24,320 --> 00:34:26,400
Produced by hand,

456
00:34:26,600 --> 00:34:29,880
cars were something
only the very well-off could afford.

457
00:34:35,680 --> 00:34:37,480
The entrepreneur Henry Ford

458
00:34:37,640 --> 00:34:39,640
revolutionised industry in America

459
00:34:39,800 --> 00:34:42,280
by taking the mechanisation
of production lines

460
00:34:42,440 --> 00:34:44,680
to never-before-seen levels.

461
00:34:50,000 --> 00:34:51,920
Known for his hatred of unions

462
00:34:52,080 --> 00:34:54,760
and his contempt for progressivism,

463
00:34:54,920 --> 00:34:57,920
Ford did learn some lessons from
Endicott's company in New York.

464
00:35:03,360 --> 00:35:05,840
Ford paid his employees double

465
00:35:06,000 --> 00:35:07,520
the average working wage

466
00:35:07,680 --> 00:35:10,000
in exchange for them
not joining unions

467
00:35:10,160 --> 00:35:12,600
and agreeing to the rate of work.

468
00:35:21,200 --> 00:35:24,200
Mass production meant
he was able to halve the price

469
00:35:24,760 --> 00:35:27,000
of a standardised model, the Ford T.

470
00:35:30,840 --> 00:35:34,280
Millions of this car were produced.

471
00:35:39,720 --> 00:35:42,000
And cars need fuel,

472
00:35:44,640 --> 00:35:46,200
specifically petrol.

473
00:35:48,560 --> 00:35:51,800
Given Standard Oil's
monopoly on refineries,

474
00:35:51,960 --> 00:35:54,720
the birth of the car meant
that Rockefeller was once again

475
00:35:54,880 --> 00:35:56,360
the world's richest man,

476
00:35:57,480 --> 00:36:00,840
becoming the first ever billionaire.

477
00:36:09,560 --> 00:36:11,680
The third Vanderbilt Cup

478
00:36:11,840 --> 00:36:15,160
took place at an average speed
of 96 kilometres an hour.

479
00:36:16,240 --> 00:36:19,160
The New York Times 7 October 1906.

480
00:36:21,640 --> 00:36:23,280
America was changing.

481
00:36:26,040 --> 00:36:27,680
Adopting progressive ideas,

482
00:36:27,840 --> 00:36:30,360
the Republican President
Theodore Roosevelt

483
00:36:30,520 --> 00:36:33,920
believed that monopolies
were now holding back change,

484
00:36:34,760 --> 00:36:37,440
and had actually been illegal
since the Anti-Trust Act

485
00:36:37,600 --> 00:36:39,240
of 1890,

486
00:36:39,400 --> 00:36:41,600
a law which was now to be enforced.

487
00:36:44,200 --> 00:36:45,320
In 1906

488
00:36:45,480 --> 00:36:48,280
Roosevelt decided
to take on Rockefeller

489
00:36:48,440 --> 00:36:50,640
and Standard Oil's monopoly.

490
00:36:52,800 --> 00:36:54,880
This meant standing up
to the army of lawyers

491
00:36:55,040 --> 00:36:57,160
the billionaire enlisted
to represent him.

492
00:36:58,800 --> 00:37:00,760
But Roosevelt wasn't
afraid of a fight,

493
00:37:00,920 --> 00:37:03,400
and a lengthy legal battle ensued.

494
00:37:11,360 --> 00:37:13,040
On 14 October 1907

495
00:37:13,240 --> 00:37:15,440
a journalist got
his hands on photographs

496
00:37:15,680 --> 00:37:17,800
taken inside
the New York Stock Exchange.

497
00:37:23,360 --> 00:37:26,440
Stocks had fallen suddenly by 50%.

498
00:37:31,120 --> 00:37:33,600
The panic which gripped Wall Street

499
00:37:33,760 --> 00:37:35,960
soon spread across
the entire country.

500
00:37:38,160 --> 00:37:41,120
Americans rushed
to empty their bank accounts

501
00:37:41,280 --> 00:37:42,800
in order to protect their savings.

502
00:37:44,520 --> 00:37:45,840
Running short on cash,

503
00:37:46,000 --> 00:37:48,200
the banking system
was at risk of collapse,

504
00:37:48,360 --> 00:37:50,560
bringing with it the whole economy.

505
00:37:53,880 --> 00:37:56,760
J. P. Morgan summoned
all of the bankers

506
00:37:56,920 --> 00:37:58,960
to his house on Madison Avenue,

507
00:37:59,120 --> 00:38:01,320
and handed them all a sheet of paper

508
00:38:02,200 --> 00:38:04,080
on which he had written the amount

509
00:38:04,240 --> 00:38:07,320
that each of them would personally
have to put into the system

510
00:38:07,480 --> 00:38:09,160
in order to put an end to the panic.

511
00:38:11,240 --> 00:38:14,800
"Nobody leaves this room
until they've signed",

512
00:38:14,960 --> 00:38:18,440
said Morgan.
"I'll handle the press release."

513
00:38:20,320 --> 00:38:22,920
By the next day, the panic was over.

514
00:38:25,920 --> 00:38:28,160
New York Times letters page

515
00:38:28,320 --> 00:38:30,320
26 October 1907.

516
00:38:32,600 --> 00:38:34,960
For once we need
a man in The White House

517
00:38:35,240 --> 00:38:37,480
who's neither
an egotist nor a politician,

518
00:38:37,640 --> 00:38:41,000
but rather a businessman who
knows what he's talking about.

519
00:38:43,920 --> 00:38:45,800
J. P. Morgan for president!

520
00:38:47,960 --> 00:38:50,400
J. P. Morgan had
just issued a reminder

521
00:38:50,560 --> 00:38:52,720
to all of the critics of monopolies

522
00:38:52,880 --> 00:38:55,960
who really held
the power in America.

523
00:38:58,120 --> 00:39:00,080
ROCKEFELLER'S RESIDENCE

524
00:39:09,480 --> 00:39:11,280
After years of legal battles,

525
00:39:11,440 --> 00:39:13,760
the court case against Standard Oil

526
00:39:13,920 --> 00:39:15,800
finally came to an end.

527
00:39:17,440 --> 00:39:21,120
On 15 May 1911
the Supreme Court ruled

528
00:39:21,280 --> 00:39:23,400
that the oil monopoly
was to be broken up

529
00:39:25,600 --> 00:39:28,880
and divided into
34 competing companies.

530
00:39:31,240 --> 00:39:34,760
In reality, this did little
to change Rockefeller's wealth

531
00:39:35,840 --> 00:39:36,840
as there was no fine,

532
00:39:37,440 --> 00:39:39,160
and shareholders in the monopoly

533
00:39:39,320 --> 00:39:41,240
were automatically made shareholders

534
00:39:41,400 --> 00:39:43,800
of the 34 new oil companies.

535
00:39:46,240 --> 00:39:47,880
But emboldened by this success,

536
00:39:48,040 --> 00:39:50,960
the government turned its
attentions towards the steel empire

537
00:39:51,120 --> 00:39:52,640
built by J.P. Morgan,

538
00:39:52,800 --> 00:39:55,840
which the Rockefeller's
were leading shareholders in.

539
00:40:00,440 --> 00:40:02,120
The Department of Justice

540
00:40:02,280 --> 00:40:04,680
begins legal proceedings
against US Steel.

541
00:40:05,200 --> 00:40:07,480
John Pierpont Morgan,
John Rockefeller

542
00:40:07,640 --> 00:40:09,280
and John Rockefeller Junior

543
00:40:09,440 --> 00:40:12,920
have officially been accused
of violating the Anti-Trust Act.

544
00:40:13,720 --> 00:40:17,560
The New York Times 27 October 1911.

545
00:40:21,680 --> 00:40:25,240
While his lawyers prepared their
defence of US Steel's monopoly,

546
00:40:25,640 --> 00:40:29,240
J. P. Morgan decided to destroy
the headquarters of Morgan & Co,

547
00:40:29,600 --> 00:40:31,560
having grown tired of the style.

548
00:40:33,840 --> 00:40:35,760
Like with the Standard Oil case,

549
00:40:35,920 --> 00:40:38,520
the court case dragged on and on,

550
00:40:38,680 --> 00:40:42,360
eventually reaching
the Supreme Court.

551
00:40:44,840 --> 00:40:47,800
Only this time,
not only was justice slow,

552
00:40:47,960 --> 00:40:51,240
but it was also reluctant to
break up America's steel champion.

553
00:40:54,000 --> 00:40:55,720
Like J. P. Morgan, many felt

554
00:40:55,880 --> 00:40:59,080
that these industrial giants
were good for America,

555
00:40:59,960 --> 00:41:02,840
and that the concentration
of capital was inevitable.

556
00:41:10,160 --> 00:41:13,880
Meanwhile, the new safe-shaped
head-office was completed.

557
00:41:16,080 --> 00:41:19,920
The case against US Steel
would eventually be dismissed.

558
00:41:21,600 --> 00:41:24,000
But the old banker
would never find out.

559
00:41:27,520 --> 00:41:29,120
J. P. Morgan is dead.

560
00:41:29,640 --> 00:41:31,200
The world pays tribute.

561
00:41:31,760 --> 00:41:35,280
Morgan Junior has been groomed
as his heir for a long time.

562
00:41:37,080 --> 00:41:38,680
The markets remain calm.

563
00:41:39,520 --> 00:41:42,400
The New York Times 1 April 1913.

564
00:41:43,520 --> 00:41:45,160
The death of J. P. Morgan

565
00:41:45,320 --> 00:41:47,760
coincided with the election
of the Democrat president

566
00:41:47,920 --> 00:41:49,400
Woodrow Wilson.

567
00:41:53,360 --> 00:41:54,960
Wilson was a progressivist

568
00:41:55,160 --> 00:41:58,280
with the support of a new
progressive majority in Congress,

569
00:41:58,440 --> 00:42:02,000
and was determined to loosen the
stranglehold of the millionaires.

570
00:42:06,440 --> 00:42:08,880
First up, an American
Central Bank was created,

571
00:42:09,040 --> 00:42:11,120
a role which previously had been

572
00:42:11,280 --> 00:42:13,600
filled by
J. P. Morgan singlehandedly.

573
00:42:15,920 --> 00:42:18,440
The Constitution was then amended

574
00:42:18,600 --> 00:42:21,920
to make it so that senators had
to be elected by direct suffrage,

575
00:42:22,560 --> 00:42:25,080
preventing millionaires
from buying a seat

576
00:42:25,240 --> 00:42:26,600
as they were used to doing.

577
00:42:29,120 --> 00:42:31,560
Thirdly, after a 30-year campaign

578
00:42:31,720 --> 00:42:33,360
by the progressive movement,

579
00:42:33,920 --> 00:42:36,040
child labour was outlawed.

580
00:42:39,520 --> 00:42:41,800
Finally, in a revolutionary step,

581
00:42:41,960 --> 00:42:43,840
America's wealthiest 4%

582
00:42:44,000 --> 00:42:47,000
would now be required
to pay income tax,

583
00:42:47,600 --> 00:42:49,440
with a high rate

584
00:42:49,600 --> 00:42:52,400
aimed squarely
at the major fortunes,

585
00:42:52,560 --> 00:42:54,000
led by Rockefeller.

586
00:42:57,480 --> 00:42:59,960
But the billionaire
immediately came up

587
00:43:00,120 --> 00:43:02,040
with a ploy to avoid paying.

588
00:43:03,640 --> 00:43:05,160
Senate passes law

589
00:43:05,320 --> 00:43:07,560
approving
Rockefeller's philanthropy.

590
00:43:08,440 --> 00:43:09,960
The Rockefeller Foundation

591
00:43:10,120 --> 00:43:13,240
is now able
to receive and use funds

592
00:43:14,080 --> 00:43:17,640
to promote the wellbeing
of humanity across the world.

593
00:43:18,280 --> 00:43:21,200
The New York Times 15 April 1913.

594
00:43:23,480 --> 00:43:26,520
The Rockefeller and Carnegie
foundations under attack.

595
00:43:27,080 --> 00:43:30,120
Senators accuse them of
commercialising charity

596
00:43:30,280 --> 00:43:31,800
and making a business out of it.

597
00:43:32,280 --> 00:43:35,160
The New York Times 6 May 1913.

598
00:43:36,400 --> 00:43:38,440
John Rockefeller and Andrew Carnegie

599
00:43:38,600 --> 00:43:41,840
used the enormous influence
they had over Congress

600
00:43:42,000 --> 00:43:44,640
to ensure that money
which went on philanthropy

601
00:43:44,800 --> 00:43:46,320
was exempt from income tax.

602
00:43:48,520 --> 00:43:50,120
And they were successful.

603
00:43:52,440 --> 00:43:55,600
Philanthropy was now a tax loophole

604
00:43:55,760 --> 00:43:57,240
enabling America's millionaires

605
00:43:57,400 --> 00:44:00,680
to keep as much money as they
wanted inside foundations,

606
00:44:01,120 --> 00:44:03,280
in addition to
all their other wealth,

607
00:44:03,440 --> 00:44:06,840
including artworks bought in Europe,
which they particularly enjoyed.

608
00:44:10,120 --> 00:44:13,560
No matter the makeup of Congress,
when it came to the big issues,

609
00:44:13,720 --> 00:44:16,760
the rich were still the ones
calling all the shots.

610
00:44:22,840 --> 00:44:24,360
In April 1914

611
00:44:24,520 --> 00:44:27,960
miners in Ludlow, Colorado
had been on strike for months.

612
00:44:28,800 --> 00:44:31,160
They wanted recognition
for their union,

613
00:44:31,320 --> 00:44:34,480
which majority shareholder
Rockefeller Junior was denying them.

614
00:44:36,960 --> 00:44:39,560
These migrants from
Central Europe barely spoke English

615
00:44:39,720 --> 00:44:41,920
and were not US citizens.

616
00:44:44,600 --> 00:44:46,320
Colorado's National Guard

617
00:44:46,480 --> 00:44:48,840
felt they could act
with total impunity.

618
00:44:52,440 --> 00:44:54,800
The soldiers stormed
the strikers' camp,

619
00:44:54,960 --> 00:44:56,360
before opening fire,

620
00:44:57,000 --> 00:45:00,560
killing 13 fleeing miners
and executing others in cold blood.

621
00:45:03,680 --> 00:45:05,280
The charred remains

622
00:45:05,440 --> 00:45:08,720
of 11 children and two women
would be found in the wreckage.

623
00:45:11,600 --> 00:45:14,360
The following day an angry mob

624
00:45:14,520 --> 00:45:17,240
went to Rockefeller's
New York HQ demanding justice.

625
00:45:27,720 --> 00:45:30,520
Junior had to explain himself
in front of an inquiry.

626
00:45:31,120 --> 00:45:33,320
As a Rockefeller,
he was not in any danger,

627
00:45:34,640 --> 00:45:37,160
but the patriarch, unable to fathom

628
00:45:37,320 --> 00:45:40,120
why this type of massacre was
no longer permitted in America,

629
00:45:40,280 --> 00:45:43,320
was furious at the way
his son had been singled out.

630
00:45:45,680 --> 00:45:49,240
He stated publicly that he saw
no harm in shooting trade unionists,

631
00:45:49,720 --> 00:45:52,240
receiving unanimous
condemnation in the press.

632
00:45:54,920 --> 00:45:56,120
Genuinely surprised,

633
00:45:56,280 --> 00:45:58,880
Rockefeller increased
his philanthropic spending

634
00:45:59,040 --> 00:46:01,160
in an attempt to divert attention.

635
00:46:04,040 --> 00:46:06,480
But the Ludlow Massacre
was soon overshadowed

636
00:46:06,640 --> 00:46:08,520
by events so dramatic

637
00:46:08,680 --> 00:46:11,560
that trading on
Wall Street was suspended.

638
00:46:31,600 --> 00:46:32,960
Despite their neutrality,

639
00:46:33,120 --> 00:46:36,560
the First World War soon had a huge
effect on the lives of Americans.

640
00:46:39,160 --> 00:46:42,000
Brutal inflation reduced
their spending power,

641
00:46:42,480 --> 00:46:44,320
while shopkeepers and grocers

642
00:46:44,480 --> 00:46:47,480
racked their brains for ways
of selling their products.

643
00:46:53,400 --> 00:46:54,640
When shopping,

644
00:46:54,800 --> 00:46:57,760
Americans were used to
giving a list to the grocer,

645
00:46:59,120 --> 00:47:01,520
who would then get
the items for them.

646
00:47:02,400 --> 00:47:05,640
Not only was this slow, but it meant
paying lots of employees.

647
00:47:08,880 --> 00:47:10,840
The grocer Clarence Saunders

648
00:47:11,000 --> 00:47:13,560
came up with a new
concept which he called

649
00:47:14,240 --> 00:47:16,040
Piggly Wiggly.

650
00:47:16,720 --> 00:47:19,200
The name meant nothing,
but he liked how it sounded.

651
00:47:21,520 --> 00:47:25,160
At Piggly Wiggly
in Memphis, Tennessee,

652
00:47:25,760 --> 00:47:27,640
customers were free to roam the shop

653
00:47:28,280 --> 00:47:31,560
filling up their own baskets
before going to the checkout.

654
00:47:34,200 --> 00:47:37,560
In return for their efforts,
they paid less than elsewhere.

655
00:47:40,720 --> 00:47:44,040
Not only were there
20 times more customers,

656
00:47:44,560 --> 00:47:45,960
but Saunders realised

657
00:47:46,120 --> 00:47:49,120
that they were all buying more
than at a traditional grocery.

658
00:47:52,560 --> 00:47:54,160
Now left to their own devices,

659
00:47:54,320 --> 00:47:57,680
customers were tempted
by impulse buy items.

660
00:48:12,000 --> 00:48:14,280
Piggly Wiggly proved such a success

661
00:48:14,440 --> 00:48:17,880
that 2,600 shops were opened
in the space of just a few years.

662
00:48:20,800 --> 00:48:22,560
The grocer Clarence Saunders

663
00:48:22,720 --> 00:48:25,280
had just invented the supermarket.

664
00:48:30,880 --> 00:48:33,880
On cinema screens,
anxious Americans watched

665
00:48:34,040 --> 00:48:36,640
the footage from this endless war

666
00:48:37,800 --> 00:48:40,280
which they had no intention
of getting caught up in.

667
00:48:43,680 --> 00:48:45,160
By offering to loan money

668
00:48:45,320 --> 00:48:47,400
to the British and
French governments,

669
00:48:47,560 --> 00:48:50,520
J. P. Morgan Junior
had chosen his side.

670
00:48:53,000 --> 00:48:56,360
His idea was to let the allies
buy steel on credit

671
00:48:56,520 --> 00:48:59,200
in order to get US Steel
running at full capacity again.

672
00:49:00,080 --> 00:49:04,040
Morgan took with him
a consortium of American bankers.

673
00:49:07,280 --> 00:49:08,520
By 1916

674
00:49:08,680 --> 00:49:10,800
Morgan Junior and his consortium

675
00:49:10,960 --> 00:49:14,360
had already loaned the Allies
more than half a billion dollars.

676
00:49:17,320 --> 00:49:19,000
He then realised

677
00:49:19,160 --> 00:49:22,760
that an Allied defeat would
leave them unable to pay him back,

678
00:49:23,480 --> 00:49:25,920
and that it would take
him and US industry

679
00:49:26,160 --> 00:49:27,880
a very long time to recover.

680
00:49:30,960 --> 00:49:34,200
President Wilson, who had
been re-elected in 1916

681
00:49:34,360 --> 00:49:36,080
on a promise to remain neutral,

682
00:49:36,760 --> 00:49:40,240
knew that America
was on course to join the war.

683
00:49:42,880 --> 00:49:44,680
In April 1917

684
00:49:44,840 --> 00:49:48,280
the United States reluctantly
declared war on Germany.

685
00:49:52,720 --> 00:49:55,040
The war was presented
as a battle for freedom

686
00:49:55,200 --> 00:49:56,560
against tyranny.

687
00:49:57,200 --> 00:50:00,320
The country was gripped
by patriotic fervour,

688
00:50:01,400 --> 00:50:03,280
and the army had no difficulties

689
00:50:03,440 --> 00:50:05,600
in recruiting
two million volunteers.

690
00:50:09,560 --> 00:50:12,520
Propaganda celebrated
American capitalism

691
00:50:12,680 --> 00:50:14,560
as the best system in the world,

692
00:50:15,440 --> 00:50:18,520
ready to meet
the exceptional needs of the army.

693
00:50:23,600 --> 00:50:26,480
In reality,
industrialists saw this war

694
00:50:26,640 --> 00:50:29,040
as an intolerable
intrusion by the state

695
00:50:29,200 --> 00:50:30,760
in their private affairs.

696
00:50:32,320 --> 00:50:35,440
The government started building

697
00:50:35,600 --> 00:50:37,360
state-owned boatyards

698
00:50:37,520 --> 00:50:40,120
where workers were paid well.

699
00:50:41,520 --> 00:50:43,240
But this unfair trading

700
00:50:43,400 --> 00:50:45,440
and assault on private enterprise

701
00:50:45,600 --> 00:50:48,160
was seen as sacrilege
by the industrialists.

702
00:50:52,000 --> 00:50:54,480
Worse still, in support of the army,

703
00:50:54,640 --> 00:50:58,240
President Wilson was quick
to nationalise certain companies

704
00:50:58,400 --> 00:51:00,680
which had used the war
as an excuse to raise prices.

705
00:51:04,400 --> 00:51:06,640
And in the event of a strike,
roles were reversed:

706
00:51:07,120 --> 00:51:10,120
from now on, employers
would be held responsible

707
00:51:10,280 --> 00:51:12,880
and could even be kicked
out of their own factories

708
00:51:13,040 --> 00:51:14,520
for the duration of the war.

709
00:51:16,560 --> 00:51:18,440
To finance military spending

710
00:51:18,600 --> 00:51:21,680
the government significantly
raised income tax,

711
00:51:22,480 --> 00:51:25,240
but as it was only paid
by 4% of Americans,

712
00:51:25,400 --> 00:51:26,640
it wasn't enough.

713
00:51:30,960 --> 00:51:33,640
The only remaining solution
was mired in uncertainty:

714
00:51:34,120 --> 00:51:36,880
borrowing en-masse
from the people of America.

715
00:51:37,920 --> 00:51:41,000
Morgan Junior and
his consortium of bankers

716
00:51:41,160 --> 00:51:42,520
joined forces with the government

717
00:51:42,680 --> 00:51:45,920
to get the marketing
campaign just right.

718
00:51:48,280 --> 00:51:51,760
These were dubbed 'liberty loans'.

719
00:51:54,000 --> 00:51:55,800
Bonds were issued four times,

720
00:51:55,960 --> 00:51:57,760
playing on people's patriotism

721
00:51:58,000 --> 00:51:59,760
and the idea of the American dream.

722
00:52:16,760 --> 00:52:20,120
And to make sure
liberty loans were a success,

723
00:52:20,520 --> 00:52:23,600
the biggest stars from Hollywood
were asked to lend their support.

724
00:52:25,600 --> 00:52:27,600
Mary Pickford.

725
00:52:33,040 --> 00:52:35,040
Charlie Chaplin.

726
00:52:38,760 --> 00:52:41,280
Douglas Fairbanks.

727
00:52:46,160 --> 00:52:48,880
The scheme was
an unqualified success.

728
00:52:52,320 --> 00:52:54,200
Fifteen million patriotic savers

729
00:52:54,360 --> 00:52:58,120
would finance more than half
of America's war spending,

730
00:52:58,920 --> 00:53:01,760
supporting their 'boys' in France.

731
00:53:14,880 --> 00:53:17,560
But the soldiers of the
expeditionary forces were surprised

732
00:53:17,720 --> 00:53:19,480
by the brutality of the fighting.

733
00:53:21,160 --> 00:53:22,160
In a few months

734
00:53:22,320 --> 00:53:25,440
more than 300,000 of them
were killed or seriously injured,

735
00:53:28,200 --> 00:53:30,640
many during the final, victorious

736
00:53:30,800 --> 00:53:33,880
Allied offensive
in the autumn of 1918.

737
00:53:37,720 --> 00:53:39,200
In the euphoria of victory

738
00:53:39,360 --> 00:53:42,160
most Americans believed
that their capitalism

739
00:53:42,320 --> 00:53:43,560
and their democracy

740
00:53:43,720 --> 00:53:46,160
were the best system in the world.

741
00:53:56,200 --> 00:53:59,520
Andrew Carnegie
has died in his 84th year.

742
00:53:59,680 --> 00:54:02,560
The great philanthropist
was born into poverty.

743
00:54:03,720 --> 00:54:06,960
The New York Times 12 August 1919.

744
00:54:09,360 --> 00:54:11,040
True to his own Gospel,

745
00:54:11,200 --> 00:54:14,240
Carnegie's entire fortune
went on philanthropic causes.

746
00:54:15,400 --> 00:54:17,320
However, by putting his
daughter, Margaret,

747
00:54:17,480 --> 00:54:19,560
at the head of his foundation,

748
00:54:19,720 --> 00:54:22,400
he left her enough money to get by.

749
00:54:26,320 --> 00:54:29,720
After this brief period of
interventionism during the war,

750
00:54:29,880 --> 00:54:33,520
millionaires breathed a sigh of
relief as they regained control.

751
00:54:38,600 --> 00:54:41,360
The workers' strikes which
shook post-war America

752
00:54:42,000 --> 00:54:45,040
and both communist
and anarchist protests

753
00:54:45,200 --> 00:54:46,120
were crushed.

754
00:55:09,280 --> 00:55:11,400
Anyone who wasn't a US citizen

755
00:55:11,560 --> 00:55:13,680
was deported back
to their home country.

756
00:55:26,560 --> 00:55:29,600
With the Republican Warren
G. Harding in The White House,

757
00:55:29,760 --> 00:55:32,160
the government returned
to its laissez-faire politics

758
00:55:32,320 --> 00:55:34,600
and took a step back
from the world of business.

759
00:55:36,680 --> 00:55:38,080
Then, to top it off,

760
00:55:38,240 --> 00:55:40,360
the law banning child labour

761
00:55:40,520 --> 00:55:43,920
was declared unconstitutional
by the Supreme Court.

762
00:55:47,520 --> 00:55:50,480
Some, however, were able
to get some schooling

763
00:55:50,640 --> 00:55:52,400
in the evenings after work.

764
00:56:25,640 --> 00:56:28,520
50 million dollars are
to be spent on wage increases

765
00:56:28,680 --> 00:56:31,160
for teachers with immediate effect.

766
00:56:31,320 --> 00:56:34,280
The rest will go to
the Rockefeller Foundation

767
00:56:34,440 --> 00:56:36,200
for the well-being of humanity.

768
00:56:36,800 --> 00:56:40,680
The New-York Tribune
25 December 1919.

769
00:56:47,760 --> 00:56:50,520
END OF PART ONE

770
00:57:21,120 --> 00:57:23,640
SUBTITLES BY PAUL MULLANEY