Book Reviews

Are the Rich Necessary? By Hunter Lewis

January 06, 2010 By Kevin Beerstecher

Economics has come a long way. There is the old stereotype of bearded and aged social theorists who are out of touch with the world around them. This is drastically changing with the advent of the “Barnes and Noble economists” such as Jeffrey Sachs, Joseph Stiglitz, and Stephen Leavitt. Their work is extremely accessible to the general public. They are showcased at major bookstores; at the front of the store no less! Jeffrey Sachs can even be seen on television jetting around with Bono and Angelina Jolie. What would Karl Marx think if he were alive today?

Are the Rich Necessary is a discussion about the roles that the wealthy play in our society, including philanthropic roles. On one hand, we are presented with theorists who want government to step in to assure equity and equality, depriving the rich of their capital. On the other hand thee are the economists and social theorists who believe in lassaiz-faire capitalism. Lewis, believes that although the excesses of extreme wealth are regrettable, they are necessary because the alternatives are not in the least attractive.

Government control would destroy the entrepreneurial impulse. Taming greed would lead to less money available in our society overall, impacting employment in the general well being. So, although greed is bad, it not anywhere near as bad as the government trying to control it.

Most of Are the Rich Necessary is spent examining arguments about the best ways of allocating wealth in our society. Readers are introduced to, and reacquainted with, a plethora of notable economists and social theorists, a list made notable by omissions such as John Stuart Mill, Hannah Arendt, Robert Putnam and Charles Kindelburger. Lewis comes down on the side of more conservative social theorists, even at one point arguing that the Federal Reserve Bank system is to blame for many of our economic woes.

Are the Rich Necessary concludes with an eleven page solution to ending the war between differing social theories based on expanding the nonprofit sector. Lewis proposes increasing tax credits for philanthropic contributions, which would greatly expand the capacity of the nonprofit sector to solve the world’s problems. For Lewis, the nonprofit sector is the ultimate solution because it allows the wealthy to reallocate their resources without being forced to do so or being restrained from acquiring this wealth in the first place. Finally, Lewis argues, the rich are necessary because they can better raise capital for a society than the government and then more wisely allocate this wealth towards nonprofit sector solutions. Are the rich necessary? The rich are especially necessary if the rest of society turns its back on the problems which confront us all.

Kevin Beerstecher is a graduate student in the M.S. in Philanthropy program at N.Y.U. and is the editor of PhilanthropyNYU.