The catalyst for this negative view of American entrepreneurs was historian Matthew Josephson, who wrote a landmark book, The Robber Barons. Josephson, the son of a Jewish banker, grew up in New York and graduated from Columbia University, where he was inspired in the classroom by Charles Beard, America’s foremost progressive historian — and a man sympathetic to socialism. “Beard was nothing less than a spellbinder”, Josephson recalled, and Beard’s lectures helped guide him on a path to radical politics.
During the 1920s, after graduation, Josephson became a journalist, an expatriate to France, and, after his return, a part of New York’s literary elite. He and Beard reconnected in 1930, and the mentor urged his student to write a book denouncing the men who had launched America’s industrial power. “Oh! those respectable ones”, Beard said of America’s capitalists, “oh! their temples of respectability — how I detest them, how I would love to pull them all down!” Happily for Beard, Josephson was handy to do the job for him. Josephson dedicated The Robber Barons to Beard, the historian most responsible for the book’s contents.
Josephson began research for his book in 1932, the nadir of the Great Depression. Businessmen were a handy scapegoat for that crisis, and Josephson embraced a Marxist view that the Great Depression was perhaps the last phase in the fall of capitalism and the triumph of communism. In a written interview for Pravda, the Soviet newspaper, Josephson said he enjoyed watching “the breakdown of our cult of business success and optimism”. He added, “The freedom of the U.S.S.R. from our cycles of insanity is the strongest argument in the world for the reconstruction of our society in a new form that is as highly centralized as Russia’s …”
Though not a member of the Communist Party, Josephson co-authored an open letter of support for the Communist Party candidates for President of the United States in 1932. “We believe”, the letter said, “that the only effective way to protest against the chaos, the appalling wastefulness, and the indescribable misery inherent in the present economic system is to vote for the Communist candidates”.
Josephson traced the troubled capitalist system of the 1930s back to the entrepreneurs of the late 1800s. Thus, by explaining what he thought was the wasteful, greedy, and corrupt development of steel, oil, and other industries under capitalism, Josephson was explaining to readers why the Great Depression was occurring. “I am not a complete Marxist”, Josephson insisted, “But what I took to heart for my own project was his theory of the process of industrial concentration, in Vol. 1 of [Marx’s] Capital, which underlay my book”.
Josephson never intended to write an objective view of American economic life in the Gilded Age. He did little research and mainly used secondary sources that supported his Marxist viewpoint. As he had written in the New Republic, “Far from shunning propaganda, we must use it more nobly, more skillfully than our predecessors, and speak through it in the local language and slogans.” Thus he wrote The Robber Barons with dramatic stories, anecdotes, and innuendos that demeaned corporate America and made the case for massive government intervention.
Burton W. Folsum, “How the Myth of the ‘Robber Barons’ Began — and Why It Persists”, Foundation for Economic Education, 2018-09-21.
July 3, 2026
QotD: Matthew Josephson’s The Robber Barons
Filed under: Books, Economics, History, USA — Tags: Communism, GreatDepression, Progressives, Propaganda, Socialism, University — Nicholas @ 01:00
