Can the Rich Be Good?

At a Westin Hotel banquet table a few weeks ago in downtown Seattle, Portland millionaire JoAnn Wiser leans over her steak dinner and recalls getting steamed at Charles Schwab, the brokerage titan. She had read an article about how he had used his influence with President George W. Bush to win support for the idea of eliminating taxes on corporate dividends. I have investments with Charles Schwab, and I totally disagree with that! Wiser exclaims in her effusive manner.

With inherited wealth from her father, a family farmer who struck it big in year-round agriculture in Southern California, Wiser figured out that she could save $17,000 a year on the dividend scheme. Big deal, she thought. It wouldnt stimulate the economy at all, because I buy what I want already, right?

Anyway, it doesnt make sense to her that, in the middle of a serious budget crisis, the federal government would talk about easing the tax burden of people who arent even working for their money, at least not the money that comes from dividends. If anything, she says, we should be raising taxes on dividends.

A lone voice in the conservative, self-interested wilderness of the rich? Not entirely. On this Friday evening, Wiser is surrounded by wealthy folks who think similarly. The occasion is the annual meeting of a Boston-based group called Responsible Wealth, whose 700 members belong in the top 5 percent of wealth nationally and whose mission is to close the economic divide that it says has created a second Gilded Age. After a round of applause for the waitstaff and an MCs mention of how the Westin was picked because its a union hotel, Bill Gates Sr. delivers a keynote address on the subject about which he has been stumping across the country: his opposition to repealing the estate tax. Over the following weekend, the crowd will go on to attend workshops with titles like Freeze the Tax Cuts and Corporate Accountability.

Conference organizers chose Seattle as this years venue because they see a lot of potential members here, and no wonder. Thanks in large part to Gates more famous son, the city has been a prime beneficiary of the tremendous economic boom that has caused the number of millionaires nationally to quintuple since 1985, to 5 million millionaires. Local economists have guessed there are around 10,000 millionaires in the Seattle area, though nobody has an exact number. The current economy has obviously slowed this trend, but the level of private wealth in this country still approximates what is was in 1998, when the boom was raging, according to Paul Schervish, a Boston College sociologist who is perhaps the nations pre-eminent researcher on wealth. Whats more, a number of these newly minted millionaires running around Seattle have been spending their time trying to figure out how, to put it simply, to be good. Some, like those in Responsible Wealth, are challenging the conventional notion of what their political line should be. Others have carved a new identity around giving away money, making Seattle one hub of a movement that has been dubbed New Philanthropy. Schervish calls these new philanthropists hyperagents or initiating entrepreneurs. Unmoved by the prospect of simply writing a check, they are people who take a hands-on approach with their giving and sometimes use it to establish whole new directions or causes.

As the concept of class war once again rears its head, with liberals saying Bushites are waging war on the poor and conservatives saying liberals are demonizing the rich, this current crop of do-gooders is mixing it all up. To some extent, they rail against the rich and powerful while being the rich and powerful. It is an irony not lost on them.

They are, in fact, a self-conscious lot. Its hard to imagine the Gilded Ages robber barons in the middle of an earnest conference on how to use their wealth responsibly. As the age of affluence meets the New Age, doing good is not just a value, it is a means toward self-actualization.

Gates Joins the Rabble-Rousers

Responsible Wealth grew out of a broader group in Boston working on the economic divide called United for Fair Economy. In the mid-90s, that groups co-founder, Chuck Collins, was holding what he calls economic literacy workshops on the growing disparity between the rich and the poor when he noticed an odd phenomenon. We had people coming to us afterwards saying, Im a retired CEO of a division of Kodak, or, Im in the top 5 percent of income, anddont tell anyoneI support your view.

Thats interesting, thought Collins, a descendant of the Oscar Mayer family who gave away a $300,000 trust fund 17 years ago when he was 26. What would it be like to organize some of these individuals to speak out?

Since he helped form Responsible Wealth in 1997, it has attracted a range of people, from the superwealthy like multibillionaires George Soros and Ted Turner to the run-of-the-mill affluent. It doesnt take as much as you might think to break into the top 5 percentjust $164,000 a year in income or $650,000 in assets. A lawyer with a house in Mount Baker could easily qualify. In fact, Mount Baker resident and local Responsible Wealth organizer Lois Canright has little cash to spare; her paper wealth comes in the form of a New Jersey farm she inherited that turned into a gold mine when suburban sprawl sent real-estate values through the roof.