"Wealth", more commonly known as "The Gospel of Wealth", is an article written
by Andrew Carnegie in 1889 that describes the responsibility of
philanthropy by the new upper class of self-made rich. Carnegie proposed that
the best way of dealing with the new phenomenon of wealth inequality was for
the wealthy to redistribute their surplus means in a responsible and
thoughtful manner. This approach was contrasted with traditional bequest,
where wealth is handed down to heirs, and other forms of bequest e.g. where
wealth is willed to the state for public purposes. Carnegie argued that surplus
wealth is put to best use when it is administered carefully by the wealthy.
Carnegie also argues against wasteful use of capital in the form of
extravagance, irresponsible spending, or self-indulgence, instead promoting the
administration of said capital over the course of one's lifetime toward the
cause of reducing the stratification between the rich and poor. As a result,
the wealthy should administer their riches responsibly and not in a way that
encourages "the slothful, the drunken, the unworthy".
Assertions The Gospel of Wealth asserts that hard
work and perseverance lead to wealth, implying that poverty is a character
flaw. Carnegie based his philosophy on the
observation that the heirs of large fortunes frequently squandered them in
riotous living rather than nurturing and growing them. Even bequeathing one's
fortune to charity was no guarantee that it would be used wisely, due to the fact
that there was no guarantee that a charitable organization not under one's
direction would use the money in accordance with one's wishes. Carnegie
disapproved of charitable giving that maintained the poor in their
impoverished state, and urged a movement toward the creation of a new mode of
giving that would create opportunities for the beneficiaries of the gift to
better themselves. As a result, the gift would not be simply consumed, but would
be productive of even greater wealth throughout the house.
In Wealth, Carnegie examines the modes of distributing accumulated wealth and
capital to the communities from which they originate. He preached that
ostentatious living and amassing private treasures were wrong. He praised the
high British taxes on the estates of dead millionaires, remarking that "By
taxing estates heavily at death the State marks its condemnation of the
selfish millionaire's unworthy life. It is desirable that nations should go much
further in this direction." Carnegie made it clear that the rich
were best suited for the re-circulation of their money back into society where
it could be used to support the greater good, given that they are presumed to
have a penchant for management of capital. However, he shunned
aristocratic chains of inheritance and argued that dependents should be
supported by their work with major moderation, with the bulk of excess
wealth to be spent on enriching the community. In cases where excess wealth
was held until death, he advocated its apprehension by the state on a
progressive scale: "Indeed, it is difficult to set bounds to the share of
a rich man's estates which should go at his death to the public through the
agency of the State, and by all means such taxes should be granted, beginning
at nothing upon moderate sums to dependents, and increasing rapidly as
the amounts swell, until of the millionaire's hoard, at least the other
half comes to the privy coffer of the State." He claimed that, in bettering
society and people here on Earth, one would be rewarded at the gates of
Paradise. Use in practice
Carnegie put his philosophy into practice through a program of gifts to
endow public libraries, known as 'Carnegie libraries' in cities and towns
throughout the United States and the English-speaking world, with the idea
that he was thus providing people with the tools to better themselves. In order
to ensure that his gifts would not be wasted, he stipulated that the
municipality must pass an ordinance establishing a tax to support the
library's ongoing operating costs after the initial grant provided the costs for
building and equipping the library. After several communities squandered
their grants on extravagant buildings, Carnegie established a system of
architectural guidelines that mandated simplicity and functionality. When it
became obvious that Carnegie could not give away his entire fortune within his
lifetime, he established the Carnegie Foundation to continue his program of
giving. See also
The Giving Pledge Gospel of success
References External links
Wealth, by Andrew Carnegie, North American Review Vol.148, Issue 391 pp.
653–665, June 1889. The Best Fields for Philanthropy, by
Andrew Carnegie, North American Review Vol.149, Issue 397 pp. 682–699, December
1889. Excerpts from "Wealth" by Andrew
Carnegie, North American Review, 148, no. 391
Carnegie, South American View, 223 no. 876