One of the things public schools don’t teach in history is important business people in the history of the United States, unless it is to demonize them as “robber barons” or opposed to labor unions.
Back in the 1970s, a comic got in some trouble for telling this joke on TV “… And GM has so much money, they could buy the State of Delaware – except duPont won’t sell it!”
GM and DuPont have a long history together. To understand politics in Delaware, [see Christine O’Donnell] you need to know the history of the world’s second largest chemical company, which is headquartered in Delaware. GM’s Wilmington assembly plant and DuPont are among the top 25 largest employers in Delaware.
The original DuPont fled to America from France following the French Revolution and founded a company to manufacture gunpower. You may remember that one of the reasons the Continental Army was ineffective was they had little gunpowder, other than what they were able to steal from the British.
DuPont’s company was very successful, which was fortunate when the US entered the war of 1812 on the side of France. DuPont held a near monopoly on the business and prospered.
By the time the car business arrives a century later, the DuPont family had money to invest and a troubled company in Flint Michigan named General Motors needed investment. DuPont showed up with cash and Mr Raskob was the VP of finance and a wealthy man in his own right.
DuPont acquired a 43% ownership in GM, which it would hold until the 1950s when the Federal government forced DuPont to divest its stake in GM. It is not a coincidence that many DuPont chemical facilities were close to GM factories. Mr Raskob came up with the idea of GMAC to allow GM to arrange financing for its customers.
In 1928, Mr. Raskob became head of the DNC and worked to try to get Al Smith elected President. Alfred Sloan at GM told Mr. Raskob that he could work for GM or the DNC, but not both. He cashed out his GM stock and left GM. Al Smith lost, and the GM backed Herbert Hoover won the election. The stock and bank collapse would hit in 1929 and sink people who had made foolish investments.
Mr Raskob took his own money and money from DuPont and started construction of the 102 story Empire State Building at 34th street and 5th Avenue. The entire building was built in a little over a year. After the building was completed in 1931, Al Smith then ran the building for DuPont.
The UAW strike in Flint Michigan happened in 1934, which began the involvement of labor unions in the auto business.
Mr. Raskob wanted to repeal prohibition and opposed FDR’s New Deal. He would continue to work for DuPont until his retirement in 1948, and died in 1950.
Republican “Pete” DuPont IV was governor of Delaware from 1977-1985 until he was term limited out of office. While in office, Delaware became a major center of credit car issuers. Since Joe Biden became a more powerful Senator, the state politics of Delaware have turned significantly to the Democratic party.
