The concept describes a philosophy prevalent during the Gilded Age in the United States, asserting that those who accumulate great wealth have a moral obligation to use their riches for the betterment of society. Proponents believed that the wealthy were best equipped to manage and distribute resources in a way that would benefit the broader population, often through philanthropic endeavors. Andrew Carnegie’s actions, such as funding libraries and educational institutions, serve as a prime example of this belief put into practice.
Its significance lies in its attempt to reconcile the vast disparities of wealth created by industrial capitalism. It provided a justification for the accumulation of fortunes while simultaneously encouraging the wealthy to address societal problems. This philosophy influenced the development of modern philanthropy and shaped the relationship between private wealth and public good in the United States, leaving a lasting impact on American social and economic structures.