As it turns out, the rich are not so very different from you and me after all. Or at least, some of the very richest Americans are discovering the merits of philanthropy that mere mortal earners have known for years.
Last week Bill Gates and Warren Buffett, in a joint response to the recession, called on fellow billionaires to give away half of their money in their lifetimes. The invitation included people like New York Mayor Michael Bloomberg, MacAndrews and Forbes CEO Ronald Perelman, and Comcast founder Gerry Lenfest.
If the nation’s wealthiest men and women answer this do-gooder call to action, it will make a measurable difference in the lives of people across the country. The Gates Foundation, with Buffett as a board member and contributor, seeks to eradicate infectious disease, improve economic opportunity in the Third World, and foster education and libraries in the United States. How unusual, for the super-rich to serve as moral role models. Imagine an America in which generosity enjoyed greater status than conspicuous consumption.
Philanthropy simply matters more today. Government is too hamstrung by debt – now approaching $13 trillion – to respond to growing human needs. Likewise now that capitalism functions in global markets for labor, capital and customers, free enterprise has lost much its power to enable people to lift themselves out of need. The efforts and contributions of individual Americans offer the best remaining solutions to our nation’s problems.
But billionaires are not in the lead on these issues. People of far less wealth have been giving time and money for others’ benefit in increasing doses over recent decades. The United States was home to 15,000 non-profit foundations in 1960. Today there are 60,000. Between 1997 and 2007 the number of U.S. non-profits grew by 30%, to 1.6 million today. Each one provides quiet evidence that government and the marketplace cannot begin to address the nation’s needs.
What’s more, last year Americans gave nearly $304 billion to charity. Some naysayers seized on the fact that this represented a 3.6 percent drop from the year before. But with some 10 million people currently unemployed, and with the stock market shedding trillions in value since late 2008, a decrease in philanthropy of a mere 3.6% actually demonstrates Americans’ widespread and sustained commitment to helping others.
There are sound reasons for this level of sacrifice. Record numbers of Americans are living in poverty, record numbers are hungry, record numbers are winding up in jail. Among the developed nations, this country ranks worst in people without health insurance, worst in children born to unwed mothers, worst in violent crime, worst in bankruptcies and worst in teen pregnancy. With unprecedented levels of homelessness among families, the average homeless person in America today is nine years old.
Need, in other words, is no longer a fringe issue. It is woven deeply into the fabric of every community. Americans from all walks of life know this reality, from foreclosures on their streets to special students in their kids’ schools to the homeless person they pass on the way home from work every day. If they do not experience need, they see it. And thus they have been responding.
Billionaires are more than welcome to join the effort to reduce these needs, if not for the good of the country then for the sake of their own consciences. As Bloomberg himself put it, “The best financial planning ends with bouncing the check to the undertaker.”