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A nabob /ˈneɪbɒb/ is an Anglo-Indian term for a conspicuously wealthy man who made his fortune in the Orient, especially in the Indian subcontinent. This was especially applied to employees of the East India Company (until 1857) who went to India to "shake the pagoda tree" (pagodas were Indian gold coinage) and the term was generally used pejoratively to indicate that the person had accumulated wealth by dubious means.
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Etymology
The word is either a borrowing directly from Hindustani nawāb/navāb/nabāb (via Persian from Arabic nuwwāb), encountered during British colonial rule in India, or indirectly via Portuguese nababo. The Portuguese nababo is a possibility because the Portuguese developed a presence in India before the British.
The word entered colloquial usage in England from 1612. Native Europeans used "nabob" to refer to those who returned from India after having made a fortune there.
European usage
The European perception of a "nabob" was of a person who having become wealthy in a foreign country, often India or the Indian subcontinent, returned to Europe with considerable power and influence. In England, the name was applied to men who made fortunes working for the East India Company and, on their return home, used the wealth to purchase seats in Parliament.
A common fear was that these individuals – the nabobs, their agents, and those who took their bribes – would use their wealth and influence to corrupt Parliament. The collapse of the Company's finances in 1772 due to bad administration, both in India and Britain, aroused public indignation towards the Company's activities and the behaviour of the Company's employees.
This perception of the pernicious influence wielded by nabobs in both social and political life led to increased scrutiny of the Company. A number of prominent Company men underwent inquiries and impeachments on charges of corruption and misrule in India. Warren Hastings, first Governor-General of India, was impeached in 1788 and acquitted in 1795 after a seven-year-long trial. Robert Clive, 1st Baron Clive, MP for Shrewsbury, was forced to defend himself against charges brought against him in the House of Commons.
Metaphorical usage in the United States
United States President Richard Nixon's vice-president, Spiro Agnew (1969–1974), known for his scathing criticisms of administration political opponents, once referred to them as "nattering nabobs of negativism" in a speech written by William Safire. Comedian Minnie Pearl often told stories about her dimwitted Uncle Nabob which may have led to the use of "nabob" as a reference to a not very smart person.
In popular culture
Samuel Foote's 1772 play, The Nabob, was a comedy satirizing those who gained money from the East India Company.
The 1992 Disney movie Aladdin includes a song where the Genie calls Aladdin a nabob.