gospel-of-wealth

1TheGospelofWealth(1889)1AndrewCarnegieTheproblemofourageistheproperadministrationofwealth,thatthetiesofbrotherhoodmaystillbindtogethertherichandpoorinharmoniousrelationship.Theconditionsofhumanlifehavenotonlybeenchanged,butrevolutionized,withinthepastfewhundredyears.Informerdaystherewaslittledifferencebetweenthedwelling,dress,food,andenvironmentofthechiefandthoseofhisretainers.TheIndiansareto-daywherecivilizedmanthenwas.WhenvisitingtheSioux,Iwasledtothewigwamofthechief.Itwasliketheothersinexternalappearance,andevenwithinthedifferencewastriflingbetweenitandthoseofthepoorestofhisbraves.Thecontrastbetweenthepalaceofthemillionaireandthecottageofthelaborerwithusto-daymeasuresthechangewhichhascomewithcivilization.Thischange,however,isnottobedeplored,butwelcomedashighlybeneficial.Itiswell,nay,essential,fortheprogressoftheracethatthehousesofsomeshouldbehomesforallthatishighestandbestinliteratureandthearts,andforalltherefinementsofcivilization,ratherthanthatnoneshouldbeso.Muchbetterthisgreatirregularitythanuniversalsqualor.WithoutwealththerecanbenoMæcenas.Thegoodoldtimeswerenotgoodoldtimes.Neithermasternorservantwasaswellsituatedthenasto-day.Arelapsetooldconditionswouldbedisastroustoboth—nottheleastsotohimwhoserves—andwouldsweepawaycivilizationwithit.Butwhetherthechangebeforgoodorill,itisuponus,beyondourpowertoalter,and,therefore,tobeacceptedandmadethebestof.Itisawasteoftimetocriticizetheinevitable....Thepricewhichsocietypaysforthelawofcompetition,likethepriceitpaysforcheapcomfortsandluxuries,isalsogreat;buttheadvantagesofthislawarealsogreaterstillthanitscost—foritistothislawthatweoweourwonderfulmaterialdevelopment,whichbringsimprovedconditionsinitstrain.But,whetherthelawbebenignornot,wemustsayofit,aswesayofthechangeintheconditionsofmentowhichwehavereferred:Itishere;wecannotevadeit;nosubstitutesforithavebeenfound;andwhilethelawmaybesometimeshardfortheindividual,itisbestfortherace,becauseitinsuresthesurvivalofthefittestineverydepartment.Weacceptandwelcome,therefore,asconditionstowhichwemustaccommodateourselves,greatinequalityofenvironment;theconcentrationofbusiness,industrialandcommercial,inthehandsofafew;andthelawofcompetitionbetweenthese,asbeingnotonlybeneficial,butessentialtothefutureprogressoftherace.Havingacceptedthese,itfollowsthattheremustbegreatscopefortheexerciseofspecialabilityinthemerchantandinthemanufacturerwhohastoconductaffairsuponagreatscale.Thatthistalentfororganizationandmanagementisrareamongmenisprovedbythefactthatitinvariablysecuresenormousrewardsforitspossessor,nomatterwhereorunderwhatlawsorconditions.TheexperiencedinaffairsalwaysratetheMANwhoseservicescanbeobtainedasapartnerasnotonlythefirstconsideration,butsuchasrenderthequestionofhiscapitalscarcelyworthconsidering:forablemensooncreatecapital;inthehandsofthosewithoutthespecialtalentrequired,capitalsoontakeswings.Suchmenbecomeinterestedinfirmsorcorporationsusingmillions;and,estimatingonlysimpleinteresttobemadeuponthecapitalinvested,itisinevitablethattheirincomemustexceedtheirexpenditureandthatthey1AndrewCarnegie,TheGospelofWealth,fromM.Kammen,ed.,ContestedValues(NewYork:St.Martin'sPress,1995),45-50.2must,therefore,accumulatewealth.Noristhereanymiddlegroundwhichsuchmencanoccupy,becausethegreatmanufacturingorcommercialconcernwhichdoesnotearnatleastinterestuponitscapitalsoonbecomesbankrupt.Itmusteithergoforwardorfallbehind;tostandstillisimpossible.Itisaconditionessentialtoitssuccessfuloperationthatitshouldbethusfarprofitable,andeventhat,inadditiontointerestoncapital,itshouldmakeprofit.Itisalaw,ascertainasanyoftheothersnamed,thatmenpossessedofthispeculiartalentforaffairs,underthefreeplayofeconomicforcesmust,ofnecessity,soonbeinreceiptofmorerevenuethancanbejudiciouslyexpendeduponthemselves;andthislawisasbeneficialfortheraceastheothers....Westart,then,withaconditionofaffairsunderwhichthebestinterestsoftheracearepromoted,butwhichinevitablygiveswealthtothefew.Thusfar,acceptingconditionsastheyexist,thesituationcanbesurveyedandpronouncedgood.Thequestionthenarises,—andiftheforegoingbecorrect,itistheonlyquestionwithwhichwehavetodeal,—Whatisthepropermodeofadministeringwealthafterthelawsuponwhichcivilizationisfoundedhavethrownitintothehandsofthefew?AnditisofthisgreatquestionthatIbelieveIofferthetruesolution.Itwillbeunderstoodthatfortunesareherespokenof,notmoderatesumssavedbymanyyearsofeffort,thereturnsfromwhicharerequiredforthecomfortablemaintenanceandeducationoffamilies.Thisisnotwealth,butonlycompetence,whichitshouldbetheaimofalltoacquire,andwhichitisforthebestinterestsofsocietyshouldbeacquired.Therearebutthreemodesinwhichsurpluswealthcanbedisposedof.Itcanbelefttothefamiliesofthedecedents;oritcanbebequeathedforpublicpurposes;or,finally,itcanbeadministeredbyitspossessorsduringtheirlives.Underthefirstandsecondmodesmostofthewealthoftheworldthathasreachedthefewhashithertobeenapplied.Letusinturnconsidereachofthesemodes.Thefirstisthemostinjudicious.Inmonarchicalcountries,theestatesandthegreatestportionofthewealtharelefttothefirstson,thatthevanityoftheparentmaybegr