Question

According to Andrew Carnegie, in his essay "Wealth", where does inequality of wealth come from, is it a problem or not, and how should it be solved?

Answer 1

Andrew Carnegie, originally a Scottish, was among the most celebrated philanthropist of his time and was among the wealthiest persons in America. He believed that the wealthy had a big responsibility of giving back to the society. He was a self-made man and that's probably the reason why he understood the value of money and the importance of philanthropy.

He believed inequality of wealth stemmed from the improper utilization of money by the upper class society. The imbalance of wealth was due to the excess (wealth) held by the upper class that deprived the other sections from living a honourable life. He suggested that the upper class must realize their responsibility towards society and invest their riches wisely and in a manner that benefitted the less privileged segment of the society. The increasing inequality between the rich and the poor could be balanced if the wealthy understood the importance of constructive distribution of their money for the betterment of the society. He suggested that the wealthy should live in moderation and distribute the excess money to the society.

He believed that it was the duty of the upper class to see that the less privileged segment of the society is better off through the judicious distribution of their wealth. It would only be then that their earnings would truly be justified. Thus, the solution lies in the understanding of the wealthy about the importance of giving back to the society for balancing the inequality of income between the rich and the poor.