Sunday, August 19, 2007

Uses of Wealth

The private enterprise system and private property [aka that Marxist term "capitalism" that I dislike] fantastically motivates people to create wealth. Some create great wealth. Here's a quote from Thucydides that sparked my thinking - perhaps I first read it referenced in Erasmus' "Praise of Folly". The quote is from the famous oration of Pericles.

"We cultivate refinement without extravagance and knowledge without effeminacy; wealth we employ more for use than for show, and place the real disgrace of poverty not in owning to the fact but in declining the struggle against it."

Other than Bill & Melinda Gates, who among the modern mega-rich emulates the beneficence of Andrew Carnegie who donated everything to create libraries in multitudes of small towns in America, including my home town? Following Pericles, his great wealth was quickly used to increase the intellectual capabilities of the entire nation. It was not hoarded in trust or a foundation to perpetuate the glory of the donor. The Gates Foundation has a fixed time limit to spend - use - all the money.

Modern rich and powerful people lobby to eliminate the rule against perpetual trusts, so they can create a new de facto nobility [not de jure as no titles can exist in America thanks to the Constitution, Article I, Section 9]. Named foundations are created that, barring stupid investments, last forever as independent institutions. Their independent boards of trustees over time can completely diverge from the donor's wishes - only the name is perpetuated. The Ford Foundation is the quintessential example.

And then I read Bill Gross in the WSJ, August 4-5, 2007 issue, page B4: "... now is the time, long overdue in fact, to admit that for the rich, for the mega-rich of this country, that enough is never enough ..." and "... "A thirty million dollar gift for a concert hall is not philanthropy, it is a Napoleonic coronation."

Much of the mega-rich seem to just want more, or to be able to brag about their "returns", hence the current infatuation with hedge funds. Or the money is spent in great shows of extravagance. Many modern mega-rich emulate dukes & princes in the past courts of Europe in their opulent parties, colossal mansions, and vast landholdings. Or endowing events and groups with the primary purpose of creating a perpetual edifice inscribed with the donor's name. Or donating to universities for fund named endowed professorships or named institutes therein. Younger scientists - those actually making most of the discoveries ... get little.

Is using the funds for increasing the capabilities of the human race ever a consideration?

Some do. A recent WSJ article about a conference in mathematics sponsored by the American Institute of Mathematics that was founded by John Fry seems to be one fine example. From its website:

"The American Institute of Mathematics, a nonprofit organization, was founded in 1994 by Silicon Valley businessmen John Fry and Steve Sorenson, longtime supporters of mathematical research.

The goals of AIM are to expand the frontiers of mathematical knowledge through focused research projects, through sponsored conferences, and through the development of an on-line mathematics library.

In addition, AIM is interested in helping to preserve the history of mathematics through the acquisition and preservation of rare mathematical books and documents and in making these materials available to scholars of mathematical history. "

Pericles would approve.

Citation: Great Books, Vol. 5, Thucydides, page 397, section 40.

1 comment:

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