Date: 2024-08-16 Page is: DBtxt003.php txt00025328
WEALTH
THE ROCKEFELLERS
Old Money Luxury: How The Rockefellers Went From 'New Money' To 'Old Money'
THE ROCKEFELLERS
Old Money Luxury: How The Rockefellers Went From 'New Money' To 'Old Money'
Original article: https://www.youtube.com/watch?v=ntteXTA-ccM
Peter Burgess COMMENTARY
Peter Burgess
Old Money Luxury
Jul 5, 2023
60.9K subscribers ... 87,006 views ... 1.9K likes
Cleveland, Ohio on the brink of the 19th century... we meet a young John D. Rockefeller — a man not BORN great — but upon whom greatness would be bestowed by the trials of life.
Embark with us on this journey from the freshly minted wealth of the “new money” Rockefellers to the prestigious “old money” dynasty John would build, as we describe…
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TIMESTAMPS:
- 0:00 Introduction
- 1:37 1. A Baptism of Oil
- 4:55 2. The Rise of John D. Rockefeller, Sr.
- 9:03 3. The Next Generation of Rockefellers
- 14:08 4. The Rockefeller Family’s Transition From “New Money” To “Old Money”
The financial landscape of America’s Gilded Age was indeed a volatile crucible, with fortunes being made and lost almost overnight.
Within this climate, a distinction arose between “new money” — the freshly minted wealth of entrepreneurs and industrialists — and “old money,” the inherited wealth of established families that had accumulated assets over generations.
The terms encapsulated more than just the age of wealth; they signified cultural differences, social acceptability, and the capacity for wealth preservation.
The Rockefellers — beginning as “new money” — were no strangers to this volatility.
However, their pragmatic approach to wealth accumulation and preservation arguably allowed them to transition into the esteemed category of “old money.”
Key to this transformation was their ability to integrate into high society and form strategic alliances through marriage.
Addtionally, embedded in the core of the Rockefeller family’s legacy is their remarkable philanthropy.
The Rockefellers became known as patrons of education and the arts, helping to shape America’s cultural landscape.
They lent their considerable resources to institutions such as the University of Chicago and the Museum of Modern Art.
This deep-rooted philanthropy wasn’t simply about donating money; it was an essential tool for shaping their public persona, showcasing their commitment to societal advancement.
Yet, alongside this is their equally noteworthy ability to amass and preserve substantial wealth. This duality reflects the character of John D. Rockefeller himself, who was known to be a ruthless businessman yet an incredibly generous philanthropist.
Their philanthropic ventures were strategic. They served to not only improve public welfare but also to bolster their societal standing, assisting in their seamless transition from “new money” to “old money.”
Through these actions, the Rockefellers were not just cementing their place within societal elites, but also highlighting their dedication to the public good.
Therefore, simultaneously, the Rockefellers adopted several strategies to safeguard their wealth, ensuring that it would endure across generations.
One significant step in this regard was the establishment of the Rockefeller Foundation in 1913.
This move was more than an act of charity; it was a calculated effort to shield their wealth from heavy estate taxes, thereby allowing it to grow and benefit society simultaneously.
Over time, the Foundation’s immense contributions to public health, education, and arts helped to further establish and fortify the Rockefeller name.
Trusts also played a critical role in their wealth preservation strategy.
John D. Rockefeller Sr. formed his first trust in 1891, transferring a significant portion of his fortune to it.
This move offered both tax advantages and protection against potential heirs’ mismanagement, thereby ensuring the continuity of the Rockefeller fortune.
In addition, the Rockefellers innovatively used holding companies to manage their diverse business interests.
These corporate structures provided a protective shield for their wealth while also promoting growth.
This use of corporate entities set a precedent for future wealthy families, showing how wealth could be protected and multiplied simultaneously.
As such, the Rockefellers are a perfect example of how one family managed to become synonymous with philanthropy while maintaining an iron grip on their wealth, demonstrating a duality that has become part of their enduring legacy.