“The day is not far distant when the man who dies leaving behind him millions of available wealth, which was free for him to administer during life, will pass away unwept, unhonored, and unsung, no matter to what uses he leave the dross which he cannot take with him.”
The words are those of Andrew Carnegie, the man who built up the American steel industry. After amassing great wealth, he retired and became a philanthropist. As a child, I fed my love for reading in a library founded with his wealth. My family would have found it difficult to buy all the books I was able to read free of charge.
Capitalism is a powerful economic machine. It is unrivaled in its ability to produce goods, but it is neither good nor evil in itself.
Some capitalists pay huge sums to politicians favoring policies allowing more and more wealth and political power to accumulate to fewer and fewer wealthy individuals.
Others support worthy cause like scholarships and homeless shelters and health programs.
As capitalism’s wealth accumulates, the capitalist decides whether to be corrupted by it or to share both wealth and power.
More words from Carnegie: “Of such as these the public verdict will then be: The man who dies thus rich dies disgraced. Such, in my opinion, is the true gospel concerning wealth, obedience to which is destined some day to solve the problem of the rich and the poor.”
Two economists in the United States (Emmanuel Saez and Edward Wolff) have delved into wealth accumulation, using historical figures. In the 1920’s, the bottom 90 percent of Americans only held 16 percent of the country’s wealth. By the 1980’s however, the middle class made impressive gains. Their percentage rose to about 36 percent of the country’s wealth.