What is wrong with Elitism?
By: Rene Velez Aug 01st, 2008.
Many years ago when studying about communism and the Russian revolution, a discussion broke out as to why the Mensheviks would not want to overthrow the Bolsheviks. Remember the Mensheviks were the lower class and the Bolsheviks were the upper class, who were in power and had more wealth. I should also add the Bolsheviks were the minority. The discussion basically said that the Mensheviks would not overthrow the Bolsheviks because the Bolsheviks were what the Mensheviks aspired to be. Namely, wealthy and in power. Ever since that day I saw a great flaw in that statement. It does not address the fact that the masses have certain basic needs and that if those needs are not met, inevitably the majority will force the minority out.
I bring this up simply because we keep hearing in the news about how the middle class continues to struggle just to make ends meet. In fact many studies show the middle class is loosing ground. And to add insult to injury the rich continue to prosper and to gain more wealth. In fact the number of billionaires continues to increase. Is there something wrong with this scenario? What’s so bad about being rich? It seems as though suddenly the whole world is turning on the super rich. My heart really pours out to these poor unfortunate few. (Not really)
Rich, a bad thing?
My feeling is; Wealth in and of itself is not bad! It’s a good thing that we have more billionaires today than yesterday. I admit it, I wish I were super rich. This means that there is more potential to create jobs, invest in capital goods and create services. This stimulates the economy and the hopes are that there will be more wealthy households. We would hope that these households would produce family members that are well educated, and in lump sum contribute to society.
There’s the Rub
There is nothing wrong with being super rich. The real issue is that with wealth comes responsibility. Or at least we hope that the super wealthy assume responsibility. The Batman series makes it a point to stress that Bruce Wayne, a billionaire, takes onto himself the responsibility of Gotham City. Not for personal gain but for the good of the people of Gotham. Why should this responsibility be born by the super rich? It should be obvious. Money yields a degree of power and influence. Most of us know this, even though I have seen many of the rich shy away from it. Many of the rich and perhaps, especially the new rich seem to want to abdicate their responsibility. It’s almost as though once they make it, they don’t want to take on responsibility. Perhaps, their definition of rich is that they have a carefree life with no responsibility. Perhaps, that is the real definition of super rich. It’s not how much money you have it’s about how little you have to worry. After all being responsible brings about a struggle and all the worries one can dream of. Who wants more problems? The truth is that being rich involves taking on a wealth of problems. In fact being super rich has its own set of problems.
The Cons
Being super rich brings about a normal tendency to adopt conspicuous consumption. We read about these things all the time. You’re so wealthy you buy extravagant and luxurious items. That 23 bedroom home with 40 bathrooms, 5 kitchens, 50 car garage, home theatre for 75, complete with an Olympic pool and tennis court. Did I mention that there are only 4 members in the family? Did I mention that most of the time the house is empty? Conspicuous consumption can be obscene, and it certainly does stir curiosity. If you ask some of the super rich, some actually live in fear. Why? They fear that their life style and wealth could actually bring them harm. I must admit, if I were super wealthy I think I might develop a certain level of paranoia. There are a lot of sick people out there. You could be killed by some mentally ill person who wants to show up on the nightly news. At best being super wealthy might bring about a certain celebrity status. This has pit falls also. The super famous, will tell you that it is extremely exhausting to have photographers popping up out of the bushes, to take a picture. Or snapping photos while you’re in the bathroom. Most people take for granted going for a walk or going to the mall. Celebrities, have to often give these small pleasures up altogether. It’s not easy being rich. It’s easy to see that security concerns, privacy and managing wealth costs money and takes up time. I once was discussing with a new client who had come into great wealth, he had to be more prudent in spending his money, investing and tracking his tax exposure. Being wealthy does by necessity require more administration than you might think. Then there are those that are simply trying to steal your money. Everybody from the landscaper to your investment manager charges you more cause you have money. Sometimes the worst culprits are the immediate family! People who are rich wind up paying more simply because…they are rich.
Being super rich has some serious down sides. Perhaps that is why many shy away from accepting responsibility.
Elitism and Indifference
Most people tend to gravitate and socialize with members of society who are like they are. It’s hard to socialize with people who are less educated and less priviledged. This may sound like elitism, but is it really? If your life revolves around meeting the super wealthy and influential, and making trips to far and distant places, and buying very expensive luxury items it’s kind of difficult to relate to Joe and Mary Workman who , work and struggle for a living. Joe and Mary work so hard to keep up and to take care of the children that planning a vacation and the associated cost are more stressful than staying at home. Joe and Mary Workman have a totally different view and set of preoccupations than the super wealthy. Does this mean that there is no connection? Absolutely not! Elitism is not because you are wealthy or because you do not often socialize with people outside of your sphere. It is because you are so out of touch that you can no longer relate to the rest of the world. Herein lies the crux of the problem. How can, the super rich, those who have power and influence best understand and contribute to society as a whole when they really don’t understand or even relate to how 98% of how the world lives. Indifference is a sign of how wealth corrupts the wealthy. You might say indifference among the super rich is a sign of becoming a victim of your own success. This is not good! You can say, indifference is the real elitism. The super rich usually pride themselves on the material things that they posses, on the high level of education they attain, and the influence they have. There is a level of status and culture that is portrayed if you are super rich. However, indifference truly is a sign of a poor education and low class. You can not truly be the upper crust if you do not understand your everyday citizen. I wonder how the politically elite fair in this scenario. Should these people really be your representative?
The Etiquette of Social Responsibility
Being truly wealthy and cultured demands Responsibility. If you loved good wines and were very wealthy you could potentially drink yourself to death on fine wines. That would not be good. It’s also not responsible. So therefore, if you are the crust of society, or at minimum, you care about society and are very wealthy, good culture and form would demand that you accept your respective level of responsibility for society. What does that mean? I does not necessarily require giving away your money! Having good etiquette in social responsibility may not cost you a fortune. Giving away your money may not necessarily be an efficient use of assets to bring about the greater good of humanity. Take Bill Gates and Warren Buffet. Both of these Mega Billionaires are more interested in using their wealth to bring about new ways of thinking to solve social problems. OF course they use money to do this, but not by just giving it away. Such basic problems as fighting diseases and feeding the hungry, providing for education. Just throwing money at these problems is not the solution. We know welfare systems typically do not work. You have to create a mechanism and a culture to provide for sustainability.
Your social responsibility lies in you doing something to influence and create a better life for those who are less fortunate. Another way to look at this is not to treat the symptom, but rather treat the root cause.
Conclusion
The true sign of wealth, influence and power is how you use your knowledge and skill to bring about changes that create and sustain your wealth and create wealth and opportunity for those below you. The latter is what I call Social Responsibility. I hope you might be asking yourself…You don’t really need money to do this. What you need is influence. Right?
Yes. Perhaps that is the greatest contribution the new generation has for us all. They may not be the super rich, but collectively they have a great deal of influence. What’s more is that they are using their influence as a group to bring about social responsibility. In fact they are telling us where we are not responsible. They are dictating to employers what they expect. They are hitting the polls and voting. They want a better government, more fuel efficient cars, public transportation and the list goes on. Perhaps there is no better sign to their determination than the number of startups by this new generation. Maybe the revolution of the Mensheviks is here again.
By: Rene Velez Aug 01st, 2008.
Many years ago when studying about communism and the Russian revolution, a discussion broke out as to why the Mensheviks would not want to overthrow the Bolsheviks. Remember the Mensheviks were the lower class and the Bolsheviks were the upper class, who were in power and had more wealth. I should also add the Bolsheviks were the minority. The discussion basically said that the Mensheviks would not overthrow the Bolsheviks because the Bolsheviks were what the Mensheviks aspired to be. Namely, wealthy and in power. Ever since that day I saw a great flaw in that statement. It does not address the fact that the masses have certain basic needs and that if those needs are not met, inevitably the majority will force the minority out.
I bring this up simply because we keep hearing in the news about how the middle class continues to struggle just to make ends meet. In fact many studies show the middle class is loosing ground. And to add insult to injury the rich continue to prosper and to gain more wealth. In fact the number of billionaires continues to increase. Is there something wrong with this scenario? What’s so bad about being rich? It seems as though suddenly the whole world is turning on the super rich. My heart really pours out to these poor unfortunate few. (Not really)
Rich, a bad thing?
My feeling is; Wealth in and of itself is not bad! It’s a good thing that we have more billionaires today than yesterday. I admit it, I wish I were super rich. This means that there is more potential to create jobs, invest in capital goods and create services. This stimulates the economy and the hopes are that there will be more wealthy households. We would hope that these households would produce family members that are well educated, and in lump sum contribute to society.
There’s the Rub
There is nothing wrong with being super rich. The real issue is that with wealth comes responsibility. Or at least we hope that the super wealthy assume responsibility. The Batman series makes it a point to stress that Bruce Wayne, a billionaire, takes onto himself the responsibility of Gotham City. Not for personal gain but for the good of the people of Gotham. Why should this responsibility be born by the super rich? It should be obvious. Money yields a degree of power and influence. Most of us know this, even though I have seen many of the rich shy away from it. Many of the rich and perhaps, especially the new rich seem to want to abdicate their responsibility. It’s almost as though once they make it, they don’t want to take on responsibility. Perhaps, their definition of rich is that they have a carefree life with no responsibility. Perhaps, that is the real definition of super rich. It’s not how much money you have it’s about how little you have to worry. After all being responsible brings about a struggle and all the worries one can dream of. Who wants more problems? The truth is that being rich involves taking on a wealth of problems. In fact being super rich has its own set of problems.
The Cons
Being super rich brings about a normal tendency to adopt conspicuous consumption. We read about these things all the time. You’re so wealthy you buy extravagant and luxurious items. That 23 bedroom home with 40 bathrooms, 5 kitchens, 50 car garage, home theatre for 75, complete with an Olympic pool and tennis court. Did I mention that there are only 4 members in the family? Did I mention that most of the time the house is empty? Conspicuous consumption can be obscene, and it certainly does stir curiosity. If you ask some of the super rich, some actually live in fear. Why? They fear that their life style and wealth could actually bring them harm. I must admit, if I were super wealthy I think I might develop a certain level of paranoia. There are a lot of sick people out there. You could be killed by some mentally ill person who wants to show up on the nightly news. At best being super wealthy might bring about a certain celebrity status. This has pit falls also. The super famous, will tell you that it is extremely exhausting to have photographers popping up out of the bushes, to take a picture. Or snapping photos while you’re in the bathroom. Most people take for granted going for a walk or going to the mall. Celebrities, have to often give these small pleasures up altogether. It’s not easy being rich. It’s easy to see that security concerns, privacy and managing wealth costs money and takes up time. I once was discussing with a new client who had come into great wealth, he had to be more prudent in spending his money, investing and tracking his tax exposure. Being wealthy does by necessity require more administration than you might think. Then there are those that are simply trying to steal your money. Everybody from the landscaper to your investment manager charges you more cause you have money. Sometimes the worst culprits are the immediate family! People who are rich wind up paying more simply because…they are rich.
Being super rich has some serious down sides. Perhaps that is why many shy away from accepting responsibility.
Elitism and Indifference
Most people tend to gravitate and socialize with members of society who are like they are. It’s hard to socialize with people who are less educated and less priviledged. This may sound like elitism, but is it really? If your life revolves around meeting the super wealthy and influential, and making trips to far and distant places, and buying very expensive luxury items it’s kind of difficult to relate to Joe and Mary Workman who , work and struggle for a living. Joe and Mary work so hard to keep up and to take care of the children that planning a vacation and the associated cost are more stressful than staying at home. Joe and Mary Workman have a totally different view and set of preoccupations than the super wealthy. Does this mean that there is no connection? Absolutely not! Elitism is not because you are wealthy or because you do not often socialize with people outside of your sphere. It is because you are so out of touch that you can no longer relate to the rest of the world. Herein lies the crux of the problem. How can, the super rich, those who have power and influence best understand and contribute to society as a whole when they really don’t understand or even relate to how 98% of how the world lives. Indifference is a sign of how wealth corrupts the wealthy. You might say indifference among the super rich is a sign of becoming a victim of your own success. This is not good! You can say, indifference is the real elitism. The super rich usually pride themselves on the material things that they posses, on the high level of education they attain, and the influence they have. There is a level of status and culture that is portrayed if you are super rich. However, indifference truly is a sign of a poor education and low class. You can not truly be the upper crust if you do not understand your everyday citizen. I wonder how the politically elite fair in this scenario. Should these people really be your representative?
The Etiquette of Social Responsibility
Being truly wealthy and cultured demands Responsibility. If you loved good wines and were very wealthy you could potentially drink yourself to death on fine wines. That would not be good. It’s also not responsible. So therefore, if you are the crust of society, or at minimum, you care about society and are very wealthy, good culture and form would demand that you accept your respective level of responsibility for society. What does that mean? I does not necessarily require giving away your money! Having good etiquette in social responsibility may not cost you a fortune. Giving away your money may not necessarily be an efficient use of assets to bring about the greater good of humanity. Take Bill Gates and Warren Buffet. Both of these Mega Billionaires are more interested in using their wealth to bring about new ways of thinking to solve social problems. OF course they use money to do this, but not by just giving it away. Such basic problems as fighting diseases and feeding the hungry, providing for education. Just throwing money at these problems is not the solution. We know welfare systems typically do not work. You have to create a mechanism and a culture to provide for sustainability.
Your social responsibility lies in you doing something to influence and create a better life for those who are less fortunate. Another way to look at this is not to treat the symptom, but rather treat the root cause.
Conclusion
The true sign of wealth, influence and power is how you use your knowledge and skill to bring about changes that create and sustain your wealth and create wealth and opportunity for those below you. The latter is what I call Social Responsibility. I hope you might be asking yourself…You don’t really need money to do this. What you need is influence. Right?
Yes. Perhaps that is the greatest contribution the new generation has for us all. They may not be the super rich, but collectively they have a great deal of influence. What’s more is that they are using their influence as a group to bring about social responsibility. In fact they are telling us where we are not responsible. They are dictating to employers what they expect. They are hitting the polls and voting. They want a better government, more fuel efficient cars, public transportation and the list goes on. Perhaps there is no better sign to their determination than the number of startups by this new generation. Maybe the revolution of the Mensheviks is here again.
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