The Origins of 'Millionaire' and 'Billionaire': From John Law to John D. Rockefeller

The terms 'millionaire' and 'billionaire' have become ubiquitous descriptors of extreme wealth and success. But who were the world's first 'millionaire' and 'billionaire'? This article explores the origins of these terms and identifies the individuals who first used them.

Who Invented the Terms 'Millionaire' and 'Billionaire'?

The term 'millionaire' was first used in a specific context, not speculation on the richest individuals. The story begins with John Law (1671-1729), a Scottish financier who played a significant role in the history of international finance.

John Law was a Scottish gambler who became the head of French finances, but not because of any genuine financial acumen. He founded the Mississippi Company, a joint-stock company that promised to create enormous profits through exclusive trading rights in Louisiana. At the height of his power, the term 'millionaire' was coined to describe John Law, marking the first time this term was used to describe a person's wealth.

Despite the incredible wealth he claimed, John Law's company ultimately led to the notorious Mississippi Bubble. This speculative investment scheme, involving the overvaluation of company shares, resulted in a massive economic crash, costing many people a significant portion of their wealth, including Law himself. However, his name and the term 'millionaire' remain as a historical footnote.

The First U.S. Dollar Billionaire: John D. Rockefeller

The term 'billionaire' was again invented to describe a specific individual—John D. Rockefeller. Rockefeller, an American business magnate, was the founder of the Standard Oil Company, one of the largest oil brands in the world during the late 19th and early 20th centuries.

Rockefeller's rise to billionaire status was a testament to his business acumen and deft management of the Standard Oil monopoly. By the early 20th century, specifically around 1916, Rockefeller became the first person in modern history to achieve a net worth over $1 billion. The term 'billionaire' was coined to describe him, making him a symbol of American industrial and financial success.

Other Early Wealthy Figures

While John Law is credited with coining the term 'millionaire' and John D. Rockefeller for 'billionaire', it is worth noting that the term 'millionaire' was used earlier, notably to describe a German businessman named Jakob Fugger (circa 1453-1525). Fugger was a wealthy merchant and real estate investor in the 15th and 16th centuries, leaving behind an inheritance of 2,032,652 guilders, an immense fortune for his time.

Conclusion

The terms 'millionaire' and 'billionaire' may seem like modern creations, but they have a rich and historically significant past. John Law and John D. Rockefeller were the individuals to whom these terms were first applied, marking significant milestones in the history of wealth and finance. Through their stories, we glimpse into the world of financial powerhouses that shaped the modern world.