Thursday, March 26, 2015

How Andrew Carnegie Thought the Wealthy Should Handle Their Wealth

            Andrew Carnegie, one of the wealthiest industrialists of his day, made his opinions on the wealthy well known in the late 1880’s with his book, Gospel of Wealth. Carnegie’s philosophical beliefs were somewhat of a new view regarding wealth and the role the wealthy played in society. He stated that the wealthy were the elite of society, as they possessed a spectacular talent, which allowed them to make their fortunes in a capitalist society. Due to their natural intuition, the wealthy had a duty to watch over the gap of classes in the capitalist society in order to make sure the gap didn’t grow too much to cause an uprising from the poor (Gandolfo). Carnegie had many ideas regarding how the wealthy should handle their fortunes to maintain a sufficient gap; one was that of a 100% inheritance tax upon the death of the prosperous figure. This tax would encourage the well-off population to figure out ways to spend their money in alternative ways, because who would want to give all their money straight to the government? Carnegie thought that with this tax, the government wouldn’t have as much control of the gap of classes, since the government workers were not the wealthy, which means they did not possess the sought after hardworking, creative gene that graced the top tier of the world (Gandolfo).
            Another conclusion made by Carnegie was that any person that dies filthy rich is a disgrace because the money is supposed to circulate in philanthropic ways to help to common good. Carnegie also stated that leaving all of your hard-earned money to family isn’t a great alternative since the family weren’t graced with the same fabulous talents as the wealthy, so it wouldn’t be fair to society to have untalented rich people.
            Recently, the CEO of Apple, Tim Cook, decided to follow in Andrew Carnegie’s outline, as he plans to give away his $785 million fortune, minus the money he put aside to pay for his nephew’s college education (CNBC). Many other millionaires and billionaires have gone in the same direction, finding it necessary to aid the remainder of society rather than frivolously spend and leave it all to family members.
            Many arguments can be made against Andrew Carnegie’s philosophy. The biggest being that of his idea of the wealthy being the most talented people in the world (Gandolfo). What about public heroes such as Mother Teresa or influential figures like Martin Luther King? Are they not considered spectacular because of their small bank account?
            I completely support wanting to give away your fortune to the less fortunate or public services, but I also believe that it is entirely up to the wealth-holder. If they want to hand it all down to their decedents, go for it. If they want to build thirty libraries, all power to you.
            I don’t believe that a person’s economic status decides how talented, hardworking, and creative they are. So many factors play into the character of a person, not just wealth.
            Andrew Carnegie brought up many solid points, but like every opinion, it can be disputed.


"Apple's Tim Cook Will Give Away His Money." CNBC, 26 Mar. 2015. Web. 26 Mar. 2015.
            http://www.cnbc.com/id/102539600

Gandolfo, David, Prof. "Andrew Carnegie." Philosophy Lecture. Forman University, Greenville. 26 Mar. 2015. Lecture.

1 comment:

  1. It's interesting that someone we think of as a paragon of free enterprise would be so in favor of a 100%, essentially confiscatory, tax. Now of course, the issue is that they might also spend as much of it as possible rather than give it away, or alternately just buy things for their children during their life. I think some sort of progressive consumption tax, in combination with an estate or gift tax, might make a good deal of sense.

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