WEBVTT

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- When we think of achievement,

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we think of changing the world
with a new idea.

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But innovation doesn't always
mean an entirely new product.

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That was true of Ruth Handler -
the inventor of Barbie.

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[upbeat music]


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The story of Ruth Handler and Barbie

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really begins in the 1940s.

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Ruth and her husband Elliot,

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started a plastics business

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making picture frames and clocks

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from a new material called Lucite.

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They named the business Mattel,

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a combination of Ruth's husband's name

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and the name of their then-partner.

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Ruth and her husband became
fascinated by the toy business.

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The Handlers came out with
something called the "Burp Gun".

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They had invested a fortune
getting it to market,

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only to discover that kids were
having trouble using the toy.

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Hundreds of "Burp Guns"
were being returned.

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Desperate to save their business,

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they literally bet their company

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on a new advertising medium - television.

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Plunking down $500,000 to
sponsor a new Disney program

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called "The Mickey Mouse Club."

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And they would reach
not parents, but kids.

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Ruth brought the same
daring to her next product.

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She noticed that when her
daughter and her friends

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played with paper dolls,

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they preferred cardboard cutouts

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depicting young women

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who they saw as role models.

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On a trip to Europe, she
found her inspiration -

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Bild Lilli, a plastic fashion doll,

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created for a German newspaper
as a gag gift for adults.

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She went home and
created an American version

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and named it Barbie, after her daughter.

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Attention was paid to every detail,

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from the design to selecting plastic

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with the right look and feel.

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Barbie's wardrobe was hand-stitched
by a company in Japan.

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Once again, Ruth turned to
"The Mickey Mouse Club."

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Sales took off.

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350,000 dolls were sold
in the first year.

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The company followed up
with countless accessories.

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A male doll, Ken, was
named for Ruth's son.

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Mattel went public in 1960

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and swiftly became an industry giant.

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It entered a new phase.

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The Handlers brought in MBAs

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who took Mattel on an expansion binge,

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acquiring everything from
a pet products company

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to part of Ringling Brothers.

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Soon, there was trouble.

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The Handlers were accused of
covering up company losses.

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In the mid-1970s,

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they were kicked out of their company.

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Ruth was devastated.

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The trouble at Mattel
led the government

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to charge Ruth and several
executives with fraud.

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She pleaded no contest

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and was convicted with
a suspended sentence.

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She had avoided jail, but
was now a convicted felon.

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Slowly, Ruth put her life
back together.

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Mattel eventually brought her back

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to make promotional appearances.

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People stood in line for hours

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to meet the mother of Barbie.

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By the time she died at
the age of 85 in 2002,

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she was once more admired as a
feminist pioneer and business icon.

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The company she co-founded, Mattel,

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today employs 31,000 people,

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and more than 1 billion
Barbie Dolls have been sold.

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Ruth Handler's achievement

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is a powerful lesson
about wealth creation.

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Wealth doesn't just come from
discovering oil and new technology,

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it can come from the simplest of ideas,

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like a doll that lets young girls
dream about growing up.

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Finally, her late-in-life
comeback shows

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that with free markets,
there are second chances.

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I'm Steve Forbes.