Politics and economics are inseparable, and sometimes political decisions are made to achieve economic goals. Looking at a country as large as the United States, we find that many companies control its policies and fund politicians to defend their interests both domestically and internationally. Therefore, we can say that economics is the foundation of everything.
One family that understood this game early on is the Rothschild family. Some say they were once responsible for shaping global policies and possibly still are. As a banking dynasty, they were once among the wealthiest families in the world, investing profitably in major infrastructure projects across Europe such as bridges, tunnels, and railways. One of their most notable projects is the Suez Canal. Since its inception, they have been pioneers in developing international finance, with branches in several countries including the United Kingdom, France, Austria, and Italy, in addition to their home city of Frankfurt in Germany.
The Rothschild family was founded by Mayer Amschel Rothschild (1744-1812), who grew up in the “Juden” quarter of Frankfurt—a narrow ghetto where the city’s 3,000 Jewish inhabitants lived. They faced several restrictions, such as being unable to leave at night on Sundays and Christian holidays, being barred from visiting public parks or cafés, and not being allowed to walk in public places in groups larger than two. Amid these conditions, Mayer learned business management at a young age. His father, Amschel, worked in fabric trading and antique coin exchange. One of Mayer’s first jobs was sorting coins obtained from biannual trade fairs in Frankfurt, which attracted buyers and sellers from the region. When he was twelve, his parents died of smallpox, and he lived with relatives who sent him to Hanover to train at a prominent Jewish banking house. There, Mayer worked in foreign trade and finance, and became acquainted with rare coins from ancient Rome, Persia, and the Byzantine Empire, where collectors included princes and other wealthy individuals. The Jewish dealers who interacted with them were known as “court Jews,” indicating their dealings with nobility.
At the age of nineteen, Mayer Rothschild returned to Frankfurt in 1763 and joined his brothers in their father’s business. He became a dealer in rare coins and won the patronage of Prince Wilhelm of Hesse, who previously bought coins from his father. This business relationship was significant for Mayer, as it expanded his operations to include other financial services and helped him develop connections with other nobles. In 1769, Mayer Rothschild requested and received the title of “Court Factor” or “Agent of the Crown,” signifying his service to the royal family, and he placed a shield with the Hesse coat of arms in his home. In 1770, Mayer married Gutele Schanber, the daughter of a banker and court factor, and they had ten children—five sons and five daughters.
The Rothschild banking empire grew rapidly during the French Revolution. Mayer Rothschild financed British efforts to employ Hessian mercenaries and, in the early 19th century, sent his sons to live in five European cities: Naples in Italy (for his son Karl), Vienna in Austria (for Solomon), Paris in France (for James), and London in the United Kingdom (for Nathan), while keeping his fifth son, Amschel, in Frankfurt, Germany. As Mayer Rothschild’s sons spread across Europe, the five branches became interconnected, creating the first cross-border bank. Over several centuries, they provided loans to governments to finance military operations. For the Rothschild family, wars meant loans to warring princes, helping them acquire bonds and assets that contributed to their wealth, in addition to investing in various industries and legitimate trade in essential products like wheat, cotton, and arms. The Rothschilds successfully adapted to the Industrial Revolution, contributing to economic growth throughout Europe through investments in railways, coal, iron, and mineral resources. Before his death, Mayer Rothschild left strict instructions to his heirs on managing the family’s financial affairs, aiming to keep the wealth within the family. Thus, his will established a strict system of paternal inheritance, allowing property and assets to pass only through the male lineage and excluding females from direct inheritance. This encouraged marriage among family members, and between 1824 and 1877, there were 36 marriages of Mayer Rothschild’s male descendants, with 30 marrying within the family and only four women marrying Rothschilds and two men marrying partners outside the family.
Among the four Rothschild sons who left their hometown of Frankfurt, the third son, Nathan (1777-1836), achieved the greatest success. Nathan moved to Manchester, England, in 1798 to establish a textile business and later moved to London, where he established NM Rothschild & Sons in 1810, which still operates today. Like other Rothschild banks, the London bank provided credit to the British government during crises. During the wars with Napoleon Bonaparte, the bank funded the government’s aid to allies, lent money for British troop salaries, and almost single-handedly financed the war effort. In 1824, Nathan Rothschild and Moses Montefiore founded the Alliance Assurance Company, which also continues to operate today. In 1835, Nathan acquired rights to mercury mines in Spain, effectively gaining a global monopoly on this crucial chemical for refining gold and silver. This monopoly proved invaluable in 1852 when the family began investing in gold and silver refining for the Bank of England and the Royal Mint.
In addition to his economic activities, Nathan Rothschild contributed to many social initiatives in Jewish communities. His family later engaged in charitable efforts in Paris and London and supported the development of the State of Israel, which was established through pressure from the British branch of the family on the government. They succeeded in securing the Balfour Declaration after their support during World War I and later helped in building housing and government buildings. Louise, Nathan’s youngest child, and her seven daughters were responsible for many of the Rothschild family’s thirty charitable institutions in Frankfurt, which included public libraries, orphanages, hospitals, elderly homes, and educational funds. The Free Jewish School in London received significant financial support from them, and educational efforts in Austria, France, and Israel were made possible by the Rothschild family’s generosity. The family also donated around 60,000 pieces of art to public institutions and expanded social housing in London and Paris, establishing a foundation to promote these efforts.
Over the years, due to wars, politics, and family rivalries, the Rothschild family’s wealth diminished over the following hundred years. The Naples bank branch closed in 1863, and due to a lack of male heirs, the Frankfurt branch closed in 1901, followed by the Vienna branch in 1938 after the Nazi invasion of Austria and the threat it posed to Jews during World War II. The Vichy government in France seized Rothschild assets, and the Nazis confiscated millions of dollars worth of art and other valuables from the Austrian branch (some of which was returned by the Austrian government in 1998). Over the years, Rothschild properties were donated to the British and French governments and other organizations and universities. By the 1970s, only three Rothschild banks remained: the London and Paris branches and a Swiss bank founded by Edmond Adolphe de Rothschild. In 1982, the socialist government of French President François Mitterrand delivered a fatal blow to the Paris bank, nationalizing it and renaming it. In 2008, all Rothschild assets were reorganized under a single company based in France to unify the family businesses after nearly two centuries of their five children spreading across Europe.
Today, the Rothschild family’s holdings span various industries, including financial services, real estate, mining, energy, and philanthropy. The Rothschild family also owns more than ten wineries worldwide. Nathan Rothschild’s holdings have become closely tied to the family’s collective wealth, passed down to each new generation. Today, the Rothschild descendants continue to fund global business operations and contribute to scientific, humanitarian, cultural, and commercial endeavors, adhering to the family motto of harmony, integrity, and industry.
