When billionaires are criticized for their excess wealth, their defenders often point out that they are philanthropists. Bill Gates is famous for his foundation, Jeff Bezos has given millions to his charities, and the Koch brothers have spent lavishly on higher education and medical research.
One counter to this defense is that this philanthropy yields advantages ranging from tax breaks to buying influence. To use an Aristotelian criticism, if the billionaires are engaging in philanthropy to advance their own interests rather than being generous for generosity’s sake, then they are not acting from virtue and should not be praised. To use a non-billionaire example, if I volunteer with an environmental group because I want to impress the liberals, then I am not being virtuous. If I volunteer because I want to do good, then I would be virtuous. But not everyone embraces virtue ethics.
A utilitarian would not be concerned with the motives and character of billionaires and would focus on the consequences of their actions. So, if Bezos donates money to get a tax break or offset his negative image, that does not matter to the utilitarian. What matters is the effect of the donation in terms of generating happiness and unhappiness. As such, even if a billionaire should not be praised for their motives or character, they should be lauded if their donation does more good than the alternatives. While the motives and character of billionaires and the utilitarian value of philanthropy can be debated at length, I turn now to the claim that the rich give the most to charity.
When people say the rich give more to charity than the non-rich, this seems to be an obviously true claim. After all, the rich have more resources and can give more in total and as a percentage of their wealth than the poor without making a significant sacrifice. To use an analogy, suppose Sally Bigbucks, you, and I are at lunch. Poor Pete asks us for $10 so he can buy food for his family. I have $10, you have $20 in your pocket, and Sally has $10,000. If lunch is $10, I’d have to forgo lunch to help Pete, which would be a real sacrifice. You could give 50% of what you have and still buy lunch, which would also be a meaningful sacrifice. Sally could generously give Pete $100, but this would only be 1% of what she has on hand and would not be a sacrifice. If she only gave him $10, that would be 0.1% of what she has on hand. The same sort of calculation should be made when the rich give what seem like large amounts of money to charity. To put these donations in perspective, you should determine what percentage the donation would be in terms of their yearly income or total wealth. So, while a wealthy person might publicly and loudly donate thousands of dollars to a charity, it might be comparable to you or I donating tens of dollars. This is not to attack the rich for donating to charity; it is better that they do this than, for example, buying a $900,000 watch. But we should keep the extent of their generosity in perspective: they can give more because they have far more than the rest of us.
Another point is that the rich can only be charitable because other people are in need. On the one hand, this can be dismissed as a an obvious “duh”: charity is only needed because there are poor people in need. If everyone was well off, there would be no need for charity. On the other hand, this is an important and we need to understand why the rich are so rich and others are so poor they need charity. With the vast wealth of the United States, why do so many people need the largess of the wealthy and the support of taxpayers just to survive?
The American right tends to explain this by claiming the rich earn their wealth and those in need of charity are defective or have been the victim of a disaster. For example, the poor are lazy or less intelligent. Racism often factors in here as well. As such, the rich are generously giving what they have rightfully earned to the unworthy or incapable. Using a Thanksgiving analogy, Grandma Sally bought a turkey feast that she graciously shares with others, despite the fact they contributed little or nothing. Perhaps because they were victims of a disaster or perhaps because they are too lazy or stupid to afford their own feast.
The left often claims the rich get their wealth by using unfair advantages and exploiting others. On this view, there are many people who need charity because the rich have taken most of the wealth. As such, when the rich engage in charity they give back to the poor some of what they took away. To use a Thanksgiving analogy, Grandma Sally has a great feast in which everyone works hard to make the feast, but Grandma doles out a few tiny bits of food to the folks at the little table.
While the left and right will endlessly debate this, charity is needed because there are people who cannot meet their needs by their own efforts, usually because of low wages and high costs. This is the system that exists, and it creates both those in need of charity and those who have so much that they can engage in philanthropy and remain extremely wealthy. As such, while philanthropy is better than nothing, it is the result of an evil system, one so imbalanced that some people require charity despite working hard.
Naturally one could advance the usual counter that those who get charity are somehow defective, such as lazy and unwilling to find good jobs. But this goes against the facts: people need charity because we have created and tolerate a system that takes so much from so many that some depend on the wealthy giving a tiny back from what they have taken. This is not worthy of praise.