Andrew Carnegie

Carnegie believed those with enormous financial power bore a moral responsibility to channel their riches into improving the community, a philosophy he articulated in his 1889 essay “The Gospel of Wealth.” “The problem of our age,” he wrote, “is the proper administration of wealth, so that the ties of brotherhood may still bind together the rich and poor in harmonious relationship.” This revolutionary concept of generosity did much to shape the philanthropic landscape of the United States during the twentieth century.

The son of a Scottish weaver, Carnegie immigrated with his family to Allegheny, Pennsylvania at the age of twelve. He soon began working in a cotton mill, and had earned a position as a superintendent for the Pennsylvania Railroad Company by the time he was 18. He later became involved in steel production, driving rapid growth in the industry through his introduction of several key technological innovations into the manufacturing process. Through substantial investments in mining and railroads, Carnegie also revolutionized the corporate strategy of “vertical integration,” a style of organization that controls all stages of supply, manufacture and distribution. 

By the end of the nineteenth century, Carnegie Steel was the largest producer of steel in the world. Upon selling the company to U.S. Steel in 1901, Carnegie also became the nation’s wealthiest individual.

Carnegie devoted his later years to philanthropy, with two principal areas of giving:  education and world peace. In an era when relatively few people had access to books, Carnegie oversaw the establishment of more than 2,500 public libraries in the United States and abroad. The Carnegie Endowment for International Peace, established in 1910, funded initiatives to promote mutual cooperation among nations. In all, Carnegie devoted more than USD 350 million to endow libraries, colleges and universities, public spaces, cultural centers and other institutions.

Some critics have assailed Carnegie for building his empire atop the corrupt system of modern capitalism, prioritizing efficiency and profit over the well-being of his employees. In “The Gospel of Wealth,” Carnegie argued vigorously against changing the underlying economic structures that enabled his wealth, even as they produced great poverty and hardship during the industrial revolution. Carnegie Steel also fought bitterly against workers’ rights, deploying armed forces against union organizers during the Homestead Strike of 1892.

This complicated legacy doesn’t alter the fact that Carnegie’s charitable endowments continue to have a meaningful impact in the twenty-first century. In dedicating the vast bulk of his fortune toward the betterment of society, Carnegie became a model for giving in the United States and worldwide.

Contributor: Matt Price