I recommend everyone read it as a good way to "get inside the mind" of others. I found that Carnegie's words articulate many of the same objections and talking points that I hear today when I talk with others about progressive or Green causes. It seems likely that Carnegie, being such a big name in the city even to today, had a much larger influence on the political thought of the area than I at first realized.
Carnegie essentially makes an argument for capitalism, and why it is good that capitalism results in money concentrating in the hands of the wealthy. Carnegie was under no misconception of "trickle down economics" -- he specifically admitted that he knew this economy would fundamentally push more wealth to the wealthy. Carnegie's purpose was explaining why he thought that was the best idea.
In a nutshell, he argues that concentrating wealth is a good idea, and that the role of the wealthy in society is to give away most of the fortune to the greater civic good:
...thus 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.
What's interesting here is the implicit sense of superiority, that somehow the wealthy, just by virtue of having money, are smarter and could make better decisions than the poor. Carnegie even calls out Communism in his essay, with the typical attack of putting too much decision power into the poor that cannot handle it.
This is a refrain I've heard a lot recently, even from high school students that I spoke to -- that democracy, leaving decisions to the "common rabble", cannot be trusted. I see now this is an attitude Carnegie rubbed off on people, and honestly even Carnegie was likely influenced by earlier generations including the Founders that believed only the educated wealthy landowners should be able to vote. I don't know how people can argue against themselves having greater political power, but I have heard it with my own ears. I suppose this mindset convinces people they are special, and so many people experience no cognitive dissonance because they believe they are part of that special wealthy or at least middle class that makes the decisions, despite evidence being to the contrary. We obviously need to make a better case for expanded democratic rule as a way of equalizing political power. Convincing people to stop working against themselves and stop supporting this type of philosophy that puts more power into the hands of the few is part of our struggle.
Carnegie also argues against public spending for the poor in what can easily be described as social darwinism. After acknowledging the downsides of the "law of competition" (capitalism and concentration of wealth), he says:
...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.
This is that typical callous, utilitarian business view of people -- you are only useful or "fit to survive" if you fit in with the business world to make profits. Anyone not generating profit is at a minimum lazy, and perhaps not even fit to survive. In his view, the poor get lazy under social programs, and only by requiring them to work harder will they get out of their situation. Specifically:
In bestowing charity, the main consideration should be to help those who will help themselves...
Carnegie then goes on to describe how giving charity to the poor that don't work hard enough and don't deserve it actually hurts them more than being poor. There's hints of the modern "they need to pull themselves up by their bootstraps" saying in his writing.
I found interesting his attack on alternative economic systems and distribution. For example, he makes an implicit argument that Native Americans are somehow less civilized because they didn't shower their leaders in wealth the way Europeans did, everyone was more equal:
The Indians are to-day where civilized man then was. When visiting the Sioux, I was led to the wigwam of the chief. It was just like the others in external appearance, and even within the difference was trifling between it and those of the poorest of his braves.
While trying to argue that concentration of wealth is natural and a foundation of our society as a whole, he criticizes Communists and others calling for different systems:
Objections to the foundations upon which society is based are not in order, because the condition of the race is better with these than it has been with any others which have been tried.
Firstly, this isn't a very sound argument since he assumed that capitalistic wealth distribution is an integral part of "civilized" society. But more simply, his argument is essentially "well, it's good enough, could be worse!" While it could indeed be worse, this sort of statement also lacks imagination -- is current day really the best we could ever hope for? Even if it is true that we are better than in the past, shouldn't we try to improve further? Well, Carnegie has an objection to us seeking better alternatives:
...even if it were good to change it, which we cannot know. It is not practicable in our day or in our age. ... Our duty is with what is practicable now; with the next step possible in our day and generation. It is criminal to waste our energies in endeavoring to uproot, when all we can profitably or possibly accomplish is to bend the universal tree of humanity a little in the direction most favorable to the production of good fruit under existing circumstances.
This strikes me as almost exactly word-for-word objections we hear from Democratic leaders on why we can't have things like single payer healthcare, free college tuition, and other social programs. "What a noble goal!" they say "It's just not practical." During Bernie's campaign, very commonly we heard "Why waste energy setting up single payer healthcare system when you can just protect the ACA and expand it?" Carnegie is saying exactly that here -- while more socialist economies might very well be more noble and efficient, why put energy into changing things when we can just make tweaks to what we have now? What we have now is practical. I wonder how many of the factories and technological advancements of Carnegie's era, much less today, would have been seen not as "practical" but "pie-in-the-sky" dreams a few hundred years ago. That's the flaw with these arguments, that somehow it's too difficult to advance when advancement has been exactly the story of humanity. Perhaps out of pride and conceit, we convince ourselves that we are today at the peak of human evolution, and nothing could ever possibly change at any point in the future. In reality, we will likely be the "cavemen" for some distant generation, much like we look at people during the Revolutionary War, the Middle Ages, or even further back.
Interestingly, Carnegie does support one fairly progressive reform: he argues that wealthy people sitting on money is not good for the economy, and that simply gifting that money to descendants is giving money to people that haven't earned it yet in the name of creating a dynasty. Carnegie actually argues for a high estate tax in order to encourage the wealthy to spend that money within their lifetimes rather than sit on it for inheritances, even going so far to say that he'd prefer to see that type of tax than most others. While this almost sounds like a good idea, Carnegie's point is that with a high tax rate, very little would get taxed and the government still wouldn't spend much -- instead, the wealthy themselves would act as "trustee" and spend that money on civic needs they deem worthy. Again, rather than democratic, public spending, he'd rather the wealthy act as oligarchs, deciding what the people need and don't need for them -- obviously, the wealthy are better than us and we should just trust them to make the best decisions on their own! Surprisingly, I've known poor people that defend this however; Republican family members of mine repeat talking points similar to this to explain why tax cuts for the wealthy are somehow good. They'll spend it on good things, obviously, and will definitely give good paying jobs and amenities to them in return.
Having heard these arguments from middle class and even working class people around Pittsburgh, seeing how much the arguments are intertwined with the city's history through Carnegie gives me new perspective on cultural inertia. While easy to imagine today's Republicans preaching the Gospel of Wealth, many of these statements sound a lot like Democratic leaders too, further emphasizing the fact that our two-party system has evolved to be an effectively one-party pro-corporate pro-capitalist system. While there is certainly difference and disagreement between the parties on some issues, they both have a fundamentally neoliberal outlook on society and economics.
We need more alternative visions and arguments, we need more diversity of thought, and we need to be prepared with counters to these arguments as we grow and get our message out to the public. Today's generations now live 100+ years after Carnegie's heyday; his influence, as well as the influence of many other capitalists, has long had a grip over our country's economic system. It will take a very sustained effort to get people to open up to alternatives, but knowing how they think by reading things like Carnegie's essay helps us understand the filter through which they see the world, and helps us devise new ways of presenting our argument.
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