A Penny for Thoughts on Charity

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Author: Michelle Park

Carlos Slim Helu, Forbes Magazine’s Richest Man since 2007, spoke at the September 2010 Sydney Conference and left those in attendance with an intriguing thought: the inefficient means of charity and the merits of increasing employment. But while employment is the backbone of a healthy economy, it is not the only solution. Although charity is not as efficient as creating employment in terms of stimulating the economy, it is a more viable and easier alternative.

The issue stems from the fact that the economy does not always reflect the sort of perfectly efficient market theorized in Economics 101 courses. There are negative externalities, excess burdens, monopoly and market participants unaccounted for. The skewed representation of the economy, however, cannot hide the fact that unemployment is a growing issue. And Slim clearly voiced his stance on the matter when he notified Forbes that charity is not the solution to the world’s economic problems – employment is.

Increasing employment would be an effective method to enhance a staggering economy, but doing so within a competitive market is not easy. Externalities like immigration and education come into play while a technologically advancing society begins to slow. Even the thought of creating labor jobs for uneducated workers becomes daunting.

Two other absurdly rich men, Bill Gates and Warren Buffet, are two faces of one comrade – they both advocate charitable methods of economic stimulation. Their recent visit to China has established the notion that charitable acts can have a worldwide impact, promoting the values of charity in a dilapidated economy through public awareness campaigns. China plays a particularly significant role in cultivating the merits of charity. According to Forbes’ annual list of global billionaires, the country has recently emerged as the home of 64 of the world’s 937 wealthiest people.

Carlos Slim is not known for his pretentious and conspicuous displays of wealth, nor is he a part of The Giving Pledge, but Carlos’ less-than-appealing attitude towards such charities, however, does not mean that the modest man himself completely disregards the act. He runs his own foundation, through which he gives millions of dollars to those in need. He also works with the Bill and Melinda Gates Foundation, co-funding a variety of joint ventures aimed at helping the less fortunate.

Philanthropy is not alien to this strategic billionaire. His philosophy simply leads him to favor economic strategies over charitable acts – if you give a man a fish, he will have a meal for a day, but if you teach a man how to fish, he will have a meal every day.

Advocating for the increased employment opportunities is common sense, but attempting to create new jobs is a monumental task, regardless of public support for the idea. And so, until society can implement new constructions for employment, charity does nothing to erode the economic situation.

When asked if charity is a viable option for a poor economy, Spencer Szabo (first-year) said, “Charity will help, but the philanthropic act itself is not the answer to an economic crisis. Despite its inability to change the entire economic status, charity should not be ignored completely.”

One particular organization called Bridging the Divide attempts to break down the intermediary: They promote peace and justice in areas of conflict by connecting U.S. citizens to individuals who push for civilized solutions in their own countries.

College students, more than most, advocate such charitable organizations for the sake of civilization, education and discovery. Charity has brought upon the educational values of many students, reminding many of the morals and values that exist in today’s society. It not only gives, but teaches. And to categorize charity as being strictly an economic device is harmful to the generation of a civilized community. Charity might not be the best implementation in an economic scenario, but it does not hurt to continue charitable acts until a better economic solution is found.

Michelle Park is an undeclared first-year. She can be reached at mpark@oxy.edu.

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