Empathy on the Line: Is Conventional Wealth Making Us Less Human?

What Bridging the Empathy Divide Means for Your Legacy, My Legacy — and the Future of Our Grandkids

What if the wealth we so ardently pursue is silently chipping away at our ability to empathize with others — and in doing so, jeopardizing our own future?

In a world where wealth is often celebrated as the ultimate measure of success, financial abundance is equated with freedom, influence, and opportunity. Yet beneath this glittering facade lies a disquieting paradox: as our bank accounts grow, our capacity for empathy may diminish, potentially setting the stage for societal tensions that could undermine the very wealth we've worked so hard to attain.

Studies suggest that accumulating financial wealth can lead to decreased sensitivity to the needs and emotions of others. This wealth-empathy paradox challenges the cherished narrative that success and virtue go hand in hand, prompting us to question whether the relentless pursuit of financial gain is quietly eroding our humanity—and whether ignoring this trend could have long-term consequences for everyone, including the wealthy themselves.

This isn't merely a moral concern; it's a strategic imperative. Addressing the empathy gap isn't just altruistic — it's a smart investment in preserving the legacy and long-term prosperity of the wealthy and society as a whole.

The Wealth-Empathy Divide: A Psychological Perspective

Research in psychology reveals a startling trend: as individuals accumulate wealth, their ability to empathize with others may decline.

Paul Piff, a psychologist at the University of California, Berkeley, conducted a series of studies in 2012 that shed light on this phenomenon. In one experiment, participants played a rigged game of Monopoly where some were given more money than others. The "rich" players began to exhibit rude behavior, were less considerate of their opponent, and even displayed a sense of entitlement1. They spoke louder, moved their game pieces more aggressively, and consumed more pretzels from a shared bowl. This simulated wealth led to increased self-interest and decreased empathy in a matter of minutes.        

In another study, participants were observed at crosswalks. Drivers of expensive cars were more likely to cut off pedestrians instead of yielding the right of way. Additionally, wealthier participants in lab settings were more likely to cheat in games or take candy from a jar labeled for children. These findings suggest that higher socioeconomic status may be associated with a greater sense of entitlement and less concern for others.

As Dacher Keltner, another psychologist from UC Berkeley, puts it:

"Wealth quiets the mirror neurons — the biological basis for empathy. The rich are more likely to prioritize their own goals over others’ needs."

Historical Lessons: Wealth, Isolation, and Social Upheaval

Throughout history, the concentration of wealth and the isolation of the wealthy have often preceded periods of social unrest.

Case in Point: The French Revolution

In 18th-century France, the aristocracy lived in opulence, disconnected from the struggles of the common people. Their lack of empathy and refusal to address widespread poverty fueled resentment that culminated in the French Revolution of 1789. The revolution led to the overthrow of the monarchy and a radical restructuring of French society.

Adam Smith, the father of modern economics, cautioned against idolizing the wealthy:

"The disposition to admire, and almost to worship, the rich and the powerful... is the great and most universal cause of the corruption of our moral sentiments."

The Short-Sightedness of Isolation: A Generational Cost

This cycle of wealth, isolation, and social upheaval often plays out over generations. As families accumulate wealth, they may insulate themselves from the social and economic issues faced by the wider population. This insulation creates a sense of short-sightedness, where wealth seems to guarantee security but only for the immediate future.

Robert Reich, former U.S. Secretary of Labor and a professor at UC Berkeley, highlights the risks:

"Many people of wealth fail to realize that their long-term self-interest is best served by an economy that benefits everyone."

If the wealthy focus solely on their immediate interests and remain disconnected from broader society, they may inadvertently foster conditions that lead to economic instability or social unrest. This not only threatens societal well-being but can also erode the wealth and security of future generations within their own families.

Warren Buffett underscores the importance of legacy:

"Someone's sitting in the shade today because someone planted a tree a long time ago."

By investing in the well-being of society now—through empathy, engagement, and responsible action—the wealthy can help ensure a stable and prosperous future for themselves and their descendants. Recognizing and addressing the wealth-empathy paradox becomes a strategic move to safeguard their legacy.

The Science of Power and Empathy

Power doesn't just change our circumstances; it can change our brains. Wealth can act as a double-edged sword—a tool that can build bridges or erect walls. The choice lies in how it's wielded.

A 2014 study published in the Journal of Experimental Psychology found that individuals in positions of power exhibited diminished activity in the brain regions associated with mirroring others' actions — a key component of empathy. This neural disconnect suggests that power and wealth can biologically impede our ability to connect with others.        

The Cost to Society — and to the Wealthy: When Empathy Fades

As empathy erodes among the wealthy, the gap between different socioeconomic groups widens, leading to increased inequality and social tension.

According to Oxfam's 2023 “Survival of the Richest” report, the world’s wealth gap has intensified, with the wealthiest 1% capturing an astonishing 63% of all new wealth generated from 2020 to 2021. Out of the $42 trillion in new global wealth created, this elite group took $26 trillion, leaving the remaining 99% of people to share only $16 trillion. This trend highlights how wealth disparities have escalated sharply, especially following the pandemic, which saw a surge in billionaire wealth, particularly driven by rising profits in food and energy sectors.        

Oxfam’s findings also illustrate a broader issue where many wealthy individuals contribute proportionately less in taxes compared to the working class. For example, between 2014 and 2018, some of the wealthiest individuals, like Elon Musk, paid a “true tax rate” as low as 3%, while lower-income workers, such as a Ugandan vendor earning around $80 per month, faced tax rates up to 40%. This tax imbalance exacerbates inequality by disproportionately impacting those least able to afford it. Additionally, only 4% of global tax revenue comes from wealth taxes, and many billionaires live in countries without inheritance taxes, allowing vast fortunes to pass tax-free to heirs.

With the poorest nations now spending significantly more on debt repayments than on healthcare, and with three-quarters of governments planning austerity cuts, the effects of this inequality are becoming more widespread, leading to increased poverty and economic instability globally. This situation reflects a stark contrast where wealth accumulation for a small elite contributes to growing inequality and disenfranchisement for many around the world, underscoring the urgency of addressing wealth disparities to foster more equitable economic stability.

Robert Reich, a professor at UC Berkeley, warns:

"When the wealthiest members of society are detached from the struggles of the majority, democracy itself is at risk."

This detachment doesn't just harm society; it can circle back to threaten the stability that the wealthy depend upon. Social unrest, economic instability, and political upheaval can erode markets, disrupt business operations, and even lead to policy changes that negatively impact the wealthy.

Addressing Potential Counterarguments

It's important to acknowledge that wealth and empathy aren't mutually exclusive. Many affluent individuals actively contribute to society and use their resources to effect positive change:

• MacKenzie Scott continues her trailblazing approach to philanthropy. In 2023 alone, she donated $2.1 billion to various organizations, bringing her total giving to more than $17 billion since 2019. Scott's donations focus on overlooked causes like racial equity, youth development, and affordable housing, often targeting smaller nonprofits that lack access to traditional large-scale funding. Her approach, especially with unrestricted gifts, empowers these organizations to address pressing community needs with greater flexibility and autonomy
• Ray Dalio, founder of Bridgewater Associates, channels his philanthropy through Dalio Philanthropies, with initiatives like OceanX dedicated to marine exploration and conservation. Dalio’s commitment to environmental sustainability has helped fund groundbreaking research, media collaborations, and partnerships with governments and oceanographic institutes. Dalio views his philanthropy as a way to address global knowledge gaps and inspire a broader commitment to environmental stewardship, illustrating how wealth can support scientific and environmental causes with far-reaching impact
• Warren Buffett, a longtime advocate for responsible wealth distribution, has pledged 99% of his fortune to philanthropy through the Giving Pledge, a commitment he shares with other billionaires, including Scott and Bill Gates. Buffett has donated billions to initiatives in health, education, and poverty reduction, often through the Gates Foundation. His approach reflects a belief that those who benefit most from society's opportunities have a duty to give back, fostering positive social change and equality

These -- and many more -- examples illustrate that wealth can coexist with empathy and that the wealthy can play a pivotal role in fostering societal well-being.

However, the wealth-empathy paradox highlights a broader societal trend that warrants collective attention. Addressing it requires a conscious effort from both individuals and institutions to bridge the empathy gap.

Redefining Wealth as Connection, Not Isolation

Perhaps it's time to rethink what it means to be truly wealthy. What if empathy is the bridge that connects prosperity with posterity, ensuring that wealth doesn't just build walls but opens doors?

Melinda Gates advocates for a broader definition:

"Philanthropy is not about money. It's about using whatever resources you have at your fingertips and applying them to improve the world."

By viewing wealth as an opportunity to connect and contribute, we can transform it from a source of isolation into a catalyst for positive change.

What If Wealth Were Measured by Connection?

Imagine a future where success is gauged not by net worth but by the depth of one's relationships and contributions to society.

Warren Buffett envisions this:

"I measure success by how many people love me. And the best way to be loved is to be lovable."

By integrating empathy and connection into our definition of wealth, we not only enrich our own lives but also build a more compassionate society for generations to come.

Steps Toward Bridging the Empathy Gap

For the Wealthy:

• Engage Directly with Communities: Participate in local initiatives and interact with people from different socioeconomic backgrounds to gain diverse perspectives.
• Promote Inclusive Practices: In business, foster a culture that values diversity, equity, and inclusion, ensuring that different voices are heard and respected.
• Invest in Social Causes: Support organizations and programs that address systemic issues such as education, healthcare, and poverty alleviation.
• Mentorship and Education: Share knowledge and resources to empower others, contributing to a more skilled and capable society.

For Everyone:

• Cultivate Empathy: Practice active listening and seek to understand others' experiences.
• Challenge Assumptions: Reflect on personal biases that may hinder empathy and connection.
• Advocate for Inclusive Policies: Support legislation and initiatives that promote social equity and opportunity.

Join the Conversation

• Reflect on Impact: Consider how your pursuits affect not just your own life but the stability and well-being of society as a whole.
• Build Bridges: Engage with communities outside your usual circles. Empathy grows from understanding diverse perspectives.
• Invest in the Future: Recognize that fostering empathy and addressing societal challenges is a strategic investment in long-term prosperity—for yourself and for future generations.
• Share Your Story: Have you experienced the wealth-empathy paradox in your own life or observed it in others? Your insights could help others reflect and grow.

Together, let's redefine what it means to be truly wealthy.

Final Thought

By embracing empathy, the wealthy don't just enrich the lives of others — they secure a legacy of enduring prosperity and societal harmony. In redefining wealth, we have the opportunity to not only enhance our own lives but to sow the seeds of a more compassionate world for generations to come.

Thank you for reading. Let's continue this important conversation.

REFERENCES:

1. Piff, P. K., et al. (2012). Higher social class predicts increased unethical behavior. Proceedings of the National Academy of Sciences, 109(11), 4086-4091.
2. Hogeveen, J., Inzlicht, M., & Obhi, S. S. (2014). Power changes how the brain responds to others. Journal of Experimental Psychology: General, 143(2), 755–762.
3. Smith, A. (1759). The Theory of Moral Sentiments.
4. Carnegie, A. (1889). The Gospel of Wealth.
5. Oxfam. (2023). Survival of the Richest: How we must tax the super-rich now to fight inequality. Oxfam International. Retrieved from Oxfam Report
6. Reich, R. (2018). The Common Good. Knopf.
7. Giving Pledge. (n.d.). Commitments to Philanthropy. Retrieved from Giving Pledge
8. Paravisini, D. (2023). MacKenzie Scott Gives $2.1 Billion to 300 Organizations. The Chronicle of Philanthropy. Retrieved from Chronicle of Philanthropy
9. Dalio, R. (2023). Dalio Philanthropies & OceanX. Leaders Magazine. Retrieved from Leaders Magazine
10. Buffett, W. (2023). Reflections on Philanthropy and Wealth Redistribution. Gates Foundation. Retrieved from Gates Foundation