00:00:00.000 --> 00:00:04.440 An old Chinese concept is known as free generation wealth thatwhen an ordinary 00:00:04.440 --> 00:00:08.580 man becomes wealthy all the wealth his gains will be lost before the death of 00:00:08.580 --> 00:00:12.780 his grandchildren and that seems to be as true today as it was in ancient China 00:00:12.780 --> 00:00:18.510 with 90% of family wealth being lost before the third generation in fact 70% 00:00:18.510 --> 00:00:22.590 of wealthy families lose their riches by the end of his second generation and 00:00:22.590 --> 00:00:26.340 knowing that fact it's hard not to be impressed by the Rockefeller family 00:00:26.340 --> 00:00:31.289 their rise to great wealth and notoriety happens within one generation yet still 00:00:31.289 --> 00:00:35.670 today they remain rich and powerful it's difficult to quantify the influence they 00:00:35.670 --> 00:00:40.200 now have in banking or politics but some say the Rockefellers are the most powerful 00:00:40.200 --> 00:00:44.100 family in American history and although others would give thee monsters of a 00:00:44.100 --> 00:00:48.629 position we can learn so much from how the Rockefeller family came so far from 00:00:48.629 --> 00:00:52.250 the poverty they once lived in 00:00:59.300 --> 00:01:04.110 Rockefeller is a german name taken from a village called rock and felt it was 00:01:04.110 --> 00:01:09.450 always a small village so small that in 1965 the local council decided to close 00:01:09.450 --> 00:01:14.130 down the village which i'm surprised was an option rock and felt was dissolved as 00:01:14.130 --> 00:01:18.659 a legal settlement and abandoned it's now a ghost town and its legacy might 00:01:18.659 --> 00:01:22.530 have been forgotten if a distant ancestor of the family wasn't born there 00:01:22.530 --> 00:01:27.960 when Johan Rockefeller moved to America in 1723 he Americanized his surname 00:01:27.960 --> 00:01:31.979 asked in many German immigrants like Harvey Rosen veldt's became the 00:01:31.979 --> 00:01:36.600 Roosevelt's nothing much happens to be family until john d Rockefeller was born 00:01:36.600 --> 00:01:42.090 in 1839 his father was a con man known as devil bill devil bill was notorious 00:01:42.090 --> 00:01:46.380 for cheating people out of money he even cheated his sons at every chance he got 00:01:46.380 --> 00:01:50.280 he abandoned the family more than once but tore some valuable lessons about 00:01:50.280 --> 00:01:53.130 making money young John would earn money raising 00:01:53.130 --> 00:01:57.930 turkeys and still as a child lends her money to neighbors for an interest but 00:01:57.930 --> 00:02:02.520 his mother taught him to have strong morals with the help of Protestantism so 00:02:02.520 --> 00:02:06.240 if young John wanted to become wealthy he would need to use legitimate means 00:02:06.240 --> 00:02:10.679 his family was poor but at the time of his death his net worth was about three 00:02:10.679 --> 00:02:13.220 hundred and fifty billion dollars in today 00:02:13.220 --> 00:02:17.210 money making him the richest American of all time and setting up his family 00:02:17.210 --> 00:02:21.950 dynasty as he grew into adulthood America was experiencing an oil rush all 00:02:21.950 --> 00:02:26.690 a person needed to do was find an oil well acquire rights to extract such oil 00:02:26.690 --> 00:02:30.830 and they would be rich he worked as a merchant of goods until he could afford 00:02:30.830 --> 00:02:36.320 to enter the oil business in 1863 he opened an oil refinery near Cleveland 00:02:36.320 --> 00:02:40.790 all over finding was transforming crude oil taken from the ground into oil that 00:02:40.790 --> 00:02:45.470 was ready for use mostly in lamps this move was genius as it meant Rockefeller 00:02:45.470 --> 00:02:49.850 didn't need to risk searching for oil people who already had oil would come to 00:02:49.850 --> 00:02:54.290 him therefore making his business model so much less risky and as he was more 00:02:54.290 --> 00:02:58.790 efficient than other a finest success was guaranteed he would refine oil much 00:02:58.790 --> 00:03:02.810 more cheaply and with less waste it's because he rewarded employers who 00:03:02.810 --> 00:03:06.800 develops more efficient methods and because he hated waste they produced 00:03:06.800 --> 00:03:10.490 their own barrels and grease for machinery to save money within two years 00:03:10.490 --> 00:03:14.780 his refinery was the biggest in the area as oil was working better than anything 00:03:14.780 --> 00:03:18.769 else he decided to put all his time and effort into it he and his brother 00:03:18.769 --> 00:03:23.840 William established Standard Oil in 1870 their reputation for efficiency was as 00:03:23.840 --> 00:03:27.800 valuable as their efficiency with all the best local business going to them 00:03:27.800 --> 00:03:32.060 with that as leverage they began acquiring competing refineries he made a 00:03:32.060 --> 00:03:36.260 now-famous offer to the owners of competing refineries in exchange for 00:03:36.260 --> 00:03:40.489 ownership he would make them fabulously wealthy in favor fuze he would destroy 00:03:40.489 --> 00:03:45.080 them he would do this by stealing their clients with price cuts Standard Oil 00:03:45.080 --> 00:03:48.950 would lose money by doing this but they could afford that and as these price 00:03:48.950 --> 00:03:53.030 wars killed competition they had nothing to worry about it was an incredibly 00:03:53.030 --> 00:03:57.530 aggressive strategy but it worked quick and when I say quick in just four months 00:03:57.530 --> 00:04:02.510 Standard Oil bought out 22 of its 26 competitors in Cleveland it was dubbed 00:04:02.510 --> 00:04:07.280 the Cleveland massacre this was where Rockefeller first gained notoriety by 00:04:07.280 --> 00:04:12.290 1880 Standard Oil was refining 90% of American oil if they went from zero to 00:04:12.290 --> 00:04:17.750 90 in ten years as his power grew he was able to become even more aggressive he 00:04:17.750 --> 00:04:21.410 would purge his infrastructure about his competitors relied on he would by the 00:04:21.410 --> 00:04:25.789 railroads around their refineries and circling and isolating them isolated 00:04:25.789 --> 00:04:28.110 that only Asians were to sell or go out of 00:04:28.110 --> 00:04:32.759 business similar strategies are used by Walmart and Amazon both willing to take 00:04:32.759 --> 00:04:36.720 massive losses to crush competition but it's now illegal to use many of 00:04:36.720 --> 00:04:41.069 Rockefeller's tactics as he was becoming America's first billionaire he pressed 00:04:41.069 --> 00:04:44.599 gradually turned on him he was tarnished by his dealings with politicians 00:04:44.599 --> 00:04:48.900 Standard Oil was essentially bribing Congress into allowing their massive 00:04:48.900 --> 00:04:53.069 monopolies but it wasn't enough he backed a railroad company in their own 00:04:53.069 --> 00:04:56.789 attempts to gain a rail monopoly something about a near-total oil 00:04:56.789 --> 00:05:00.960 monopoly and a near total rail monopoly teaming up scared the government into 00:05:00.960 --> 00:05:05.130 action the press were encouraging this with the New York world calling Standard 00:05:05.130 --> 00:05:09.900 Oil the most cruel impedence pitiless and grasping monopoly forever fastened 00:05:09.900 --> 00:05:14.460 upon a country at its height Standard Oil had 90% of the entire world's oil 00:05:14.460 --> 00:05:18.690 refining newspapers depicted Rockefeller as an international monarch who 00:05:18.690 --> 00:05:23.520 controlled politicians like puppets the public wanted Standard Oil investigated 00:05:23.520 --> 00:05:28.680 in 1911 v Supreme Court ruled it an illegal monopoly Standard Oil was broken 00:05:28.680 --> 00:05:33.509 up into 34 successor companies among those successes are Exxon Mobil and 00:05:33.509 --> 00:05:38.699 Chevron Rockefeller's oil Empire had been torn apart but by now he was America's 00:05:38.699 --> 00:05:43.110 most wealthy man he was called America's most hated man but was a committed 00:05:43.110 --> 00:05:48.659 philanthropist and abolitionist John d Rockefeller died in 1937 without 00:05:48.659 --> 00:05:52.979 Standard Oil his children were turned to other industries especially real estate 00:05:52.979 --> 00:05:56.909 and banking the Rockefellers have changed the world becoming a political 00:05:56.909 --> 00:06:01.409 and banking dynasty much like tje Rothschilds members are involved in 00:06:01.409 --> 00:06:05.340 important Institute's like the Brookings Institute and the World Economic Forum 00:06:05.340 --> 00:06:10.229 multiple senators have been Rockefellers and even a vice president it's hard to 00:06:10.229 --> 00:06:14.130 calculate their current wealth as much of their assets are in real estate they 00:06:14.130 --> 00:06:18.360 own some of Manhattan's most valuable buildings the Rockefellers initially 00:06:18.360 --> 00:06:22.080 made their wealth with infrastructure instead of accepting the risk involved 00:06:22.080 --> 00:06:26.669 with oil prospecting John D. Rockefeller found a way to draw those with oil to 00:06:26.669 --> 00:06:30.599 him he literally did the opposite of what others did they went to find oil 00:06:30.599 --> 00:06:34.569 but oil found its way to him that was his genius 00:06:34.569 --> 00:06:38.499 only two major parts of his strategy building infrastructure and destroying 00:06:38.499 --> 00:06:42.580 competition and due to the nature of his business model achieving one would 00:06:42.580 --> 00:06:47.259 necessarily bring the other his son was wise enough to diversify his inherited 00:06:47.259 --> 00:06:51.669 assets so instead of free generation well fits currently six generation and 00:06:51.669 --> 00:06:56.679 Counting
Office location
Engineering company LOTUS®
Russia, Ekaterinburg, Lunacharskogo street, 240/12