Wealthy magnates of yesterday can serve as a lesson for today's powerful tycoons on their obligations that come with affluence.
In the realm of contemporary discussions, the notion of 'robber barons' is experiencing a renaissance as we examine the actions and wealth accumulation of today's tech titans. This comparison harks back to the industrialists of the late 19th century, such as Andrew Carnegie, John D. Rockefeller, and Cornelius Vanderbilt, who were labelled as robber barons due to their perceived ruthless practices and disregard for social costs.
Carnegie, one of the notorious robber barons, dominated the mass production of steel and amassed an enormous personal fortune. However, his life took a significant turn when he penned "The Gospel of Wealth," a treatise on the responsible use of wealth. In this work, Carnegie argued that the wealthy have a moral obligation to use their fortunes to benefit society rather than hoarding it or passing it on to heirs.
This philosophy is particularly relevant in the context of modern tech leaders like Mark Zuckerberg. His vast wealth, largely amassed through Meta (formerly Facebook), comes with a responsibility to use it in ways that promote the wider public good.
One way this can be achieved is through 'philanthropy with impact.' Tech billionaires can invest in initiatives that create lasting social infrastructure, such as improving digital literacy, access to technology, healthcare innovations, or education reforms, which empower large populations.
Another approach is 'active wealth distribution.' Carnegie believed in distributing wealth actively during one's lifetime, and Zuckerberg exemplifies this through organizations like the Chan Zuckerberg Initiative. He has pledged substantial wealth towards curing diseases, personalized learning, and criminal justice reform, aligning with Carnegie's idea of using wealth to solve societal problems.
'Ethical stewardship' is another key principle. Tech leaders can apply this by ensuring their companies and philanthropy uphold ethical standards that benefit society and mitigate negative externalities such as privacy concerns or misinformation.
Lastly, promoting social mobility is crucial. Carnegie saw wealth as a tool to provide opportunities for all classes and to reduce inequality. Modern billionaire philanthropists can emulate this by focusing on initiatives that open pathways for underprivileged groups to thrive in the digital economy and education systems.
However, critics argue that the structure of these donations often leads to questions about how far they actually constitute philanthropy. Funds are sometimes transferred into donor-advised funds or limited liability companies for tax, investment, and reporting benefits. The concept of 'philanthrocapitalism' suggests giving can be married with the structures of neoliberal capitalism, which often tend to make the rich even richer.
Moreover, British academics Linsey McGoey, Darren Thiel, and Robin West argued in a 2018 paper that philanthrocapitalism helps to confer moral legitimacy on pro-corporate government regulation and public spending that directly exacerbate economic inequality.
Public debates are concerned about the corporate practices, working conditions, and wider impacts of these tech titans. President Joe Biden, in his farewell address, warned about an oligarchy taking shape in America that threatens democracy and basic rights.
Despite these concerns, Zuckerberg has donated more than US$4.5 billion through the Chan Zuckerberg Initiative, run with his partner, Priscilla Chan. However, his philanthropic efforts place him among the least generous billionaires, according to the latest Forbes Philanthropy Score, having given away less than 1% of his wealth.
As we continue to grapple with the implications of immense wealth in the hands of a few, Carnegie's 'Gospel of Wealth' offers valuable insights on how to use wealth responsibly. His emphasis on treating wealth as a trust fund to produce the largest communal benefit remains pertinent in the modern context. Whether tech titans like Zuckerberg will heed this call and redefine their role in society remains to be seen.
Technology plays a significant role in the realm of contemporary wealth and its consequences, as demonstrated by Mark Zuckerberg, the tech magnate who amassed a vast fortune through Meta (formerly Facebook). Recognizing his responsibility to use this wealth for the greater good, Zuckerberg follows in the footsteps of historical figures like Andrew Carnegie by engaging in philanthropy, where he invests in initiatives that promote digital literacy, healthcare innovations, education reforms, and social mobility, thereby emulating Carnegie's idea of responsible wealth utilization in the context of modern technology.
