Friday, May 9, 2008

Generous and American


I’ve just finished Arthur C. Brooks article “A Nation of Givers” in The American (April/May 2008). The article gives hard statistics to some things I’ve known both intuitively and anecdotally for years namely that as a whole, Americans are far more generous with charitable giving than all other Western countries but also that the backbone of charitable giving is the poor and middle-class who tend to donate money and volunteer time in greater proportion to their income than their wealthy counterparts (low income families give 4.5% of annual income to charity while those making more than $100,000 per annum give just 3%). The religiously active and politically conservative person also tends to give more money both formally and informally than their secular and politically liberal counterpart as well. In other words, Churchgoers who believe the government needs to cut back on social programs will predictably support their house of worship, but will also give far more to charitable causes that help the poor and disadvantaged in their community. They also tend to be the people who will stop by a bank and leave a check for someone they don’t even know who needs a liver transplant that they read about in the newspaper. One surprising note that Brooks made in the article is that religious people are 25% more likely to support non-religious but worthy causes (health, safety, and common good of people) and 21% more likely to volunteer their time to these same causes than their secular counterparts. What is truly fascinating is the statistics Brooks supplies on “forced” giving to the disadvantaged through higher tax rates, versus volunteer giving. A 10% increase in the GDP per person would lead to basically a 9% increase in charitable giving the next year. Conversely a 10% increase in taxation (forced giving) to fund social programs for the disadvantaged would lead to only 3% increase in the GDP. When people are making more because of a robust economy, it spurs them on to greater generosity which in turn is much better for the economy. The Bible says that God loves a cheerful giver but in light of this it would seem the American public ought to be grateful and our lawmakers should take notice that volunteered generosity is far greater force for the common good than coerced redistribution of wealth.

No comments: