Balkinization: Andrew Carnegie on "Death Taxes" and Other Matters

Andrew Carnegie on "Death Taxes" and Other Matters

Brian Tamanaha

It's terrific that the two parties have joined together for the public good in this time of financial stress to send checks to the American people, and give tax breaks (that is, "incentives") to corporations. At least we got past the eager opportunists who argued that because we need an immediate economic stimulus the Bush tax cuts set to expire three years hence should be made permanent now. Go figure.

In the spirit of bipartisanship, I thought it might be useful to recall the 1909 words of uber-capitalist Andrew Carnegie:

A heavy progressive tax upon wealth at death of owner is not only desirable, it is strictly just. For after making full allowance for differences in men, it still remains true that contrasts in their wealth are infinitely greater than those existing between them in their different qualities, abilities, education and except the supreme few, their contributions to the world's work. It should be remembered always that wealth is not chiefly the product of the individual under present conditions, but largely the joint product of the community.

In the same essay, The Future of Labor, Carnegie advocated profit sharing with workers, the distribution of stock to workers (with a guarantee against loss), the setting of a minimum wage, among other progressive ideas. Workers should be treated as partners of management, not as dispensable labor, Carnegie argued, and he implemented several of these programs at US Steel.

Some may question his sincerity, but the important point is that a leading capitalist would champion these positions.

Posted 10:42 AM by Brian Tamanaha [link]

Comments:

Workers should be treated as partners of management, not as dispensable labor, Carnegie argued, and he implemented several of these programs at US Steel.

Of course, Carnegie also allowed Henry Clay Frick to violently crush the Iron & Steel Workers union at Homestead. But it is still good to recall his recognition that wealth is a social product and should be shared accordingly.

# posted by

emfink : 11:25 AM

Did Carnegie ever elaborate on how the "community" (i.e. the Government) helped him create Carnegie Steel?

# posted by

Bart DePalma : 1:25 PM

Are you suggesting that the tax structure today is equivalent to the tax structure in 1909, especially as it applies to, say, the top 1% of income earners?

And has everyone forgotten ESOPs, the first widespread attempt to make workers "partners of management"? How did those work out?

# posted by

KipEsquire : 2:55 PM

Well....at least the Democrats were there, protecting the interests of the defenseless - those whose employment taxes fund the social programs administered by our government.

# posted by

Porcupine_Pal : 3:33 PM

"Did Carnegie ever elaborate on how the "community" (i.e. the Government) helped him create Carnegie Steel?"

Yes-- protective tariffs.

# posted by

mateotaussig : 2:01 AM

"wealth is not chiefly the product of the individual under present conditions, but largely the joint product of the community"

Carnegie doesn't say Government, he says community, though that was another impressive attempt to create a straw man Bart. Andrew Carnegie was not known for his time spent mining ore or smelting steel. That was done by other member of the community (i.e. workers). Without the work of these people there would be no steel and therefore no wealth.

Great wealth is never created by one person. One person is frequently responsible for the organization of labor into great wealth and while their input may have been necessary, it is never sufficient.

Bart, find me one person who created great wealth that did not rely on the work of thousands of other people.

# posted by

Anonymous : 11:29 AM

geoff rapoport said...
"
"wealth is not chiefly the product of the individual under present conditions, but largely the joint product of the community"

Carnegie doesn't say Government, he says community, though that was another impressive attempt to create a straw man Bart. Andrew Carnegie was not known for his time spent mining ore or smelting steel. That was done by other member of the community (i.e. workers). Without the work of these people there would be no steel and therefore no wealth.

The death tax is paid to the federal government and Carnegie's workers are unlikely to see a penny of it returned in federal services.

If the community to which Carnegie is referring are his workers, then this would be evidence to support Carnegie's ideas concerning proper compensation for workers and not his ideas concerning the death tax.

Indeed, if the community to which Carnegie is referring are his workers who are entitled to this wealth, then the death tax is stealing from the workers.

These socialist redistribution of wealth ideas are based on the fallacy that the People and the Government are one and the same. They are not. Rather, government is a necessary evil for which we enacted a Constitution to control.

# posted by

Bart DePalma : 1:24 PM

These socialist redistribution of wealth ideas are based on the fallacy that the People and the Government are one and the same.

Indeed. The gummint rulz, and the serf... -- ummm, sorry, wrong century, "people" -- serve.

At least that's the RWA theory. Which is why RWAs like this kind of crapola. No questions. Just move along.

Cheers,

# posted by

Arne Langsetmo : 4:17 PM

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# posted by

Unknown : 1:54 PM