[Market Economy Guide] There Is a Philosophy to Service and Giving

“Steel magnate Carnegie used the wealth he accumulated for the advancement of humanity... but he opposed blind and indiscriminate charity”

For Roman aristocrats, voluntary giving was both a duty of the upper class and a source of honor. Aristocrats often contributed their private wealth to build or restore public facilities. Donations to fight poverty or foster the next generation were also constant. In Rome, giving symbolized high status and honor. As a result, donations were made voluntarily and competitively, becoming a cornerstone of Rome’s splendid history.

Carnegie amassed wealth through the steel business

Rome’s tradition of giving has continued intact to this day. The United States, still the world’s strongest country, also has a well-established culture of philanthropy. In America, which built a nation in the New World, entrepreneurs took the place of aristocrats.

One figure who left a major mark on the history of American philanthropy was Andrew Carnegie, known as the “Steel King.” Called a “great philanthropist” by the American people, Andrew Carnegie was the starting point for the roughly 56,000 charitable foundations that exist in the United States today and a central figure in the flourishing of America’s brilliant culture of giving. He began his philanthropic work with $500 million raised by liquidating the steel company he owned, and he continued those efforts until his death.

Carnegie was extremely poor in his childhood. Born in 1835 in Scotland as the son of an impoverished handloom weaver, Carnegie moved with his family to the United States in 1848. From the age of 13, he worked whatever jobs he could find, moving from one occupation to another. In 1856, he made a successful investment in the railroad sleeping car business and began to build his fortune in earnest. After working through the railroad industry and then achieving great success in steel, Andrew Carnegie came to enjoy not only enormous wealth but also social prestige and respect. He was, in every sense, a quintessential self-made man.

“Charity is often misused”

Carnegie put the wealth he had amassed to work as a fund for the advancement of humanity. He built 3,000 libraries in the United States and Britain and established an institute of technology for scientific progress. He also supported the arts and culture and worked to prevent war. Thanks to this legacy, cultural and artistic organizations bearing Carnegie’s name are still abundant today.

Carnegie divided his life into two periods: the first half for acquiring wealth, and the second half for distributing it. He emphasized that giving back to society was therefore a sacred duty of the rich. Carnegie also had a firm philosophy of giving. In particular, he opposed simple charity that was dispensed blindly and broadly. The reason was that he knew from experience that simple charity often had no real effect.

According to Carnegie, “If the money spent today in the name of so-called charity amounts to $1,000, then about $950 of it is used undesirably. Such misguided charitable acts may actually produce the very evils they were intended to cure or alleviate.”

In the United States, a culture of giving is deeply rooted throughout society. American philanthropy began with history and religious teaching, and with an added regard for one’s competitors, it developed into a distinctive culture of giving. Even now, most Americans willingly participate in giving, and many social problems are addressed through philanthropic activity. In American society, giving is regarded as the most efficient and natural way to solve problems scattered throughout society. Because it is voluntary, participants also derive great satisfaction from it. It can effectively address various community issues that the government cannot fully take care of. Giving is not only a virtue that enriches everyone’s lives; it also plays an enormous economic role. That is the power of voluntary giving.

In the United States, giving is a culture

In the United States, not only the wealthy but most people regard giving as an honorable and natural social activity. This culture of giving is what helps keep American society healthy. And those who give feel grateful for the good fortune of being able to do so.

We sometimes mistakenly think that giving is the exclusive domain of the rich, but on closer examination, it is not only those who have gained immense wealth through economic success who give. In fact, most of the money donated to charitable organizations comes from small donors. Moreover, while donating money may be the easiest and most common form of giving, it is not the only one. Volunteering and various related activities are also forms of giving, and anyone can participate in giving in one way or another if the aim is to help others.

■ Please remember

Carnegie divided his life into two periods: the first half for acquiring wealth, and the second half for distributing it. He emphasized that giving back to society was therefore a sacred duty of the rich. Carnegie also had a firm philosophy of giving. In particular, he opposed simple charity that was dispensed blindly and broadly. The reason was that he knew from experience that simple charity often had no real effect.

Sung-no Choi, President of the Center for Free Enterprise (CFE)

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Original title: [시장경제 길라잡이] 봉사와 기부에도 철학이 있다

Author: Sung-no Choi

Date: 2019-03-18

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=14&idx=20059