Final answer:
In the 1860s, individuals could amass great wealth by exploiting private capital, government loans, and land grants to build railroads. Those who utilized exploitative strategies, such as the Credit Mobilier scandal or differential shipping rates, gained the title of 'robber barons.' Figures like Jay Gould and Cornelius Vanderbilt, despite their 'robber baron' status, significantly impacted the economy and became incredibly wealthy through the railroad industry.
Step-by-step explanation:
Someone could get incredibly rich by building a railroad beginning in the 1860s through the influx of private capital, government loans, and land grants, which laid the foundation for expansive growth in the railroad industry. Significant funding came from federal and state loans totaling $150 million, and 185 million acres of public land through land grants. Railroads were listed on the New York Stock Exchange to draw investors, and as companies merged and grew in power, some individuals became extremely wealthy. These individuals were often referred to as robber barons because of their exploitative and sometimes unethical business practices, like offering differential shipping rates that favored larger businesses over local producers.
An example of such a questionable tactic involved the Credit Mobilier scandal during the construction of the first transcontinental railroad, where inflated costs lined the pockets of railroad executives and corrupted government officials.
Notable figures like Jay Gould manipulated the market by buying and consolidating railroads, often engaging in business practices that earned him the title of a 'robber baron.' On the other hand, Cornelius Vanderbilt, while also considered a 'robber baron,' focused on the efficiency and expansion of his rail networks, contributing positively to the American economy and amassing great personal wealth in the process. The exponential growth in the railroad industry facilitated urbanization, drove the economy, and allowed men like Gould and Vanderbilt to become some of the richest in American history.