Credit Mobilier Scandal

Definition

The Credit Mobilier Scandal was a political scandal in the 1870s where Union Pacific Railroad insiders formed the Credit Mobilier company and then gave or sold shares to influential congressmen. This was done while vastly overcharging for their services, leading to high profits at taxpayer expense.

Analogy

It's like if a group of students were assigned a group project, but instead of doing the work themselves, they hired someone else to do it at an inflated price and pocketed the extra money - all while giving gifts to the teacher so they wouldn't get caught.

Related terms

Union Pacific Railroad: One of the major railroad companies involved in building America's transcontinental railroad and central to the Credit Mobilier scandal.

Gilded Age: A period in U.S history (late 19th century) characterized by rapid economic growth but also marked by corruption, materialism, and income inequality.

Political Corruption: The use of powers by government officials for illegitimate private gain.