Although he is Mr. Gradgrind’s best friend, Josiah Bounderby is more interested in money and power than in facts. Indeed, he is himself a fiction, or a fraud. Bounderby’s inflated sense of pride is illustrated by his oft-repeated declaration, “I am Josiah Bounderby of Coketown.” This statement generally prefaces the story of Bounderby’s childhood poverty and suffering, a story designed to impress its listeners with a sense of the young Josiah Bounderby’s determination and self-discipline. However, Dickens explodes the myth of the self-made man when Bounderby’s mother, Mrs. Pegler, reveals that her son had a decent, loving childhood and a good education, and that he was not abandoned, after all.
Bounderby’s attitude represents the social changes created by industrialization and capitalism. Whereas birth or bloodline formerly determined the social hierarchy, in an industrialized, capitalist society, wealth determines who holds the most power. Thus, Bounderby takes great delight in the fact that Mrs. Sparsit, an aristocrat who has fallen on hard times, has become his servant, while his own ambition has enabled him to rise from humble beginnings to become the wealthy owner of a factory and a bank. However, in depicting Bounderby, the capitalist, as a coarse, vain, self-interested hypocrite, Dickens implies that Bounderby uses his wealth and power irresponsibly, contributing to the muddled relations between rich and poor, especially in his treatment of Stephen after the Hands cast Stephen out to form a union.