Andrew Carnegie and Social Darwinism
“Some business leaders argued that the wealthy had a moral obligation to help the less fortunate and improve society, as articulated in the idea known as the Gospel of Wealth, and they made philanthropic contributions that enhanced educational opportunities and urban environments.” Andrew Carnegie built the Carnegie Steel Company (later US Steel Company) into the largest steel company and most valuable business in the world. When he sold the company to JP Morgan for $492 million, Carnegie was paid $226 million.
The price which society pays for the law of competition, like the price it pays for cheap comforts and luxuries, is also great; but the advantages of this law are also greater still, for it is to this law that we owe our wonderful material development, which brings improved conditions in its train…while the law may be sometimes hard for the individual, it is best for the race, because it insures the survival of the fittest in every department. We accept and welcome, therefore, as conditions to which we must accommodate ourselves, great inequality of environment, the concentration of business, industrial and commercial, in the hands of a few, and the law of competition between these, as being not only beneficial, but essential for the future progress of the race… This, then, is held to be the duty of the man of Wealth: …becoming the mere agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves… The laws of accumulation should be left free; the laws of distribution free. Individualism will continue. But the millionaire will be but a trustee for the poor; entrusted for a season with a part of the increased wealth of the community, but administering it for the community far better than it did, or would have done, of itself.
Andrew Carnegie. “Andrew Carnegie’s Gospel of Wealth.” The American Yawp, 1889.
Question 1
What does Carnegie think the wealthy should do?
Question 2
What does Carnegie admit about the economy’s current model?
Question 3
How is Carnegie’s thinking in line with Social Darwinism?
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