In a move that has garnered international attention, Marlene Engelhorn, a 31-year-old Austrian heiress, is allowing strangers to determine how to distribute her $27 million inheritance. Engelhorn, who inherited this substantial fortune from her grandmother, Traudl Engelhorn-Vechiatto, in September 2022, has taken an unprecedented step towards wealth redistribution.
Austrian Heiress Engelhorn’s Advocacy for Wealth Redistribution
Marlene Engelhorn is a vocal advocate for wealth redistribution. She co-founded the “Tax Me Now” campaign, which calls for higher taxes on the wealthy to address socio-economic disparities. Engelhorn believes that inherited wealth should not grant undue power and that it should be redistributed democratically.
Formation of the “Good Council for Redistribution”
To achieve this, Engelhorn established the “Good Council for Redistribution,” a group tasked with deciding how to allocate her inheritance. This council consists of 50 randomly selected Austrian citizens, chosen from a pool of 10,000 applicants who responded to her invitations. These participants represent a diverse cross-section of Austrian society, encompassing various age groups, social classes, and backgrounds.
The Selection Process and Council’s Work
The selection process required applicants to complete a short survey, after which a research institute narrowed down the candidates to ensure a representative sample. The final 50 participants, along with 15 substitutes, met over six weekends in Salzburg to deliberate on the best ways to distribute the inheritance. They received expert advice from professionals in poverty research, law, and other relevant fields. Participants were compensated for their time and expenses, including travel fares and childcare.
The Council’s Recommendations
The “Good Council for Redistribution” proposed allocating the funds to 77 charitable initiatives over several years. These included women’s shelters, children-related charities, and climate crisis organizations. The largest share of the wealth was designated for environmental organizations such as Naturschutzbund Österreich. Other potential beneficiaries included the World Inequality Lab, Reporters Without Borders, and the Catholic Charity Caritas
Austrian Heiress Engelhorn’s Perspective
In a statement clarifying her position, Engelhorn said, “A large part of my inherited wealth, which elevated me to a position of power simply by virtue of my birth, contradicting every democratic principle, has now been redistributed in accordance with democratic values.” She has consistently argued that the absence of inheritance tax in Austria, abolished in 2008, exacerbates wealth inequality. Engelhorn’s initiative is seen as a response to this policy gap and a call for systemic change
Broader Implications
Engelhorn’s actions highlight the ongoing debate about wealth inequality and the role of inheritance in perpetuating economic disparities. Austria, one of the few European countries without an inheritance tax, has seen growing wealth concentration among its richest citizens. According to economist Emanuel List, the top 5% of Austrian households own 54% of the country’s net wealth, while the bottom half owns just 4%.
Conclusion
Marlene Engelhorn’s decision to redistribute her $27 million inheritance through a public council is a groundbreaking step towards addressing wealth inequality. By involving ordinary citizens in the decision-making process, Engelhorn is not only challenging the status quo but also promoting a more democratic approach to wealth management. This initiative could serve as a model for future efforts to redistribute wealth and reduce socio-economic disparities worldwide.
