This chapter examines why educational leaders and businessmen in the United States thought it was a good idea to establish business schools in the first place. The answer often offered at the time was that American business itself had grown so big and complex by the turn of the twentieth century that a new university-level education was now required for the new world of managerial work. However, the more powerful rationale was that businessmen wanted the social status and cultural cachet that came with a university degree. The chapter then looks at the Wharton School of Finance and Economy at the University of Pennsylvania, which was founded in 1881 and became the first business school in the United States. All of the more than six hundred business schools founded in the nearly century and a half since descend from Wharton.
