August 13, 1998 | Read Time: 3 minutes
Ralph Nader has a new cause: prodding America’s richest people into meeting to discuss how they can spread the wealth to the poorest, be it through philanthropy or changes in tax systems.
Mr. Nader, the consumer advocate, last month fired off a letter to Microsoft Corporation’s chairman, Bill Gates, who is estimated to be worth $40-billion, and urged him to organize a conference of billionaires that would deal with the gap between haves and have-nots.
The two-page letter, which was also faxed to over 100 news organizations, has received a fairly cool response from Mr. Gates. However, Mr. Nader’s letter has won support from other billionaires, including Ted Turner, who called Mr. Nader to voice his interest in a conference on wealth disparities.
Mr. Nader’s letter to Mr. Gates opens by comparing the high-tech leader’s wealth with that of others: “Your net wealth is greater than the combined net worth of the poorest 40 per cent of Americans (106 million people).”
It continues: “There is obviously a problem of distributive justice that has not been given the attention it deserves by the leaders of global capitalism.”
“Let me suggest,” it says, “that you team up with [Warren Buffett] to sponsor, plan and lead a conference of billionaires and multibillionaires on the subject of National and Global Wealth Disparities and What to Do About It.”
Mr. Buffett, who is the next-wealthiest American behind Mr. Gates, according to Forbes magazine, said through an assistant that he had no comment on Mr. Nader’s letter.
While Mr. Gates did take the time to respond in writing to Mr. Nader, his one-page reply does not deal specifically with the gap between rich and poor. Instead, the letter focuses on philanthropy, Mr. Gates’s donations, and his intention to give away his fortune to good causes before he dies.
The letter begins with an allusion to Mr. Nader’s support of the federal government’s antitrust challenge to Microsoft Corporation last spring: “Though we may disagree on a number of issues about Microsoft and the incredible innovation and competition in the software industry, it appears that we have something in common: an interest in philanthropy.”
The letter continues: “It hasn’t been much of a secret that I intend to give away the bulk of my wealth during my lifetime.”
He notes that, as a start, he and his wife, Melinda, have endowed two foundations with more than $1-billion to support public health, education, and “the empowerment of the economically disadvantaged.”
In closing, Mr. Gates remarks: “I am in agreement with my friend, Warren Buffett, when he says that people who are successful in one field should be careful about suggesting they know all the answers in other areas. I do encourage everyone I know to participate in philanthropy. However, philanthropy is very personal. I think people should give because they want to give, and not because of pressure from a conference or anyone who claims they have all the answers in this area.”
In response, Mr. Nader said: “My letter was not addressed to his philanthropy. It requested that he and Warren Buffett convene a conference of billionaires on the structural issues of wealth inequality.”
Mr. Turner, by contrast, called Mr. Nader and said he very much liked the conference idea.
Sol Price, founder of Price Club, also called Mr. Nader to voice his support. “There is no question that there needs to be talk about” the wealth gap, Mr. Price said in an interview. “I think Ralph is right.”
