Standard Oil, founded by John D. Rockefeller in 1870, was one of the most powerful and controversial companies in American history. By the early 20th century, Standard Oil controlled around 90% of oil refineries and pipelines, making Rockefeller one of the richest men in the world.
Today, the legacy of Standard Oil continues to shape our economy and society. It is important for students to understand the rise and fall of this company, and the impact it had on American history.
To teach students about Rockefeller and Standard Oil, teachers can start by providing background information about the oil industry in the late 19th and early 20th centuries. They should explain how the demand for oil increased with the rise of the automobile and how Rockefeller’s business savvy allowed him to dominate the market.
Students can also learn about the tactics Rockefeller used to maintain his monopoly, such as using vertical integration to control every step of the oil production process, and engaging in aggressive price-cutting and predatory pricing to drive competitors out of business.
Next, teachers can introduce the various legal challenges that were brought against Standard Oil, including antitrust lawsuits and the Sherman Antitrust Act of 1890. Students should understand that Standard Oil was eventually broken up in 1911, but its legacy continued to shape the oil industry for decades to come.
In addition to the historical facts, it is important for students to explore the ethical considerations that arise when discussing Rockefeller and Standard Oil. Questions to consider may include: Was Rockefeller a hero or a villain? Was he simply taking advantage of opportunities presented to him, or was he acting unethically? What could have been done differently to prevent Standard Oil’s monopoly?
Teachers can also encourage students to explore the broader implications of Standard Oil’s legacy for our current economy. They can discuss whether the anti-monopoly laws that were used to break up Standard Oil are still effective, and they can explore the current concentration of wealth and power in industries such as tech, finance, and healthcare.
By teaching students about Rockefeller and Standard Oil, teachers can provide valuable lessons about American history, economics, and ethics. Students will learn how one company’s actions shaped the American economy and how they can be advocates for fair competition and ethical business practices in the future.
