Wednesday, April 9, 2008

Upper-Class Misers

Jason calls our attention to an article in NRO by Arthur C. Brooks on Mr. and Mrs. Obama's charitable giving habits. It turns out that the Obamas managed to free themselves of a whopping 1% of their income between 2000 and 2004 despite earnings of about $245,000. Their explanation for their niggardliness (look it up) was that they just couldn't afford to give more.

You'd think that the only Americans with the nerve to use such an excuse for not giving would be the poor. But in fact, it is the poor - specifically the working poor - who can most teach upper-class misers a charity lesson. The working poor are America's most generous givers when we measure giving as a percentage of income. Most studies have shown that the working poor tend to give away between four and five percent of their incomes, on average, while the rich give away between three and four percent. (Both groups give away significantly more than the middle class.)

The Obamas got rich in 2005. Their income increased sevenfold from 2004 to 2005, mostly because of Mr. Obama's book royalties, and stayed very high in 2006 for the same reason. In 2006, another wealthy political couple with significant book royalties was Mr. and Mrs. Cheney, who had a combined income of $8.8 million, largely due to Mrs. Cheney's books and the couple's investment income. Just how much did the Cheneys give to charity from their bonanza? A measly 78 percent of their income, or $6.9 million. (No, that is not a misprint.)

The Obamas' penny-pinching would not be at all offensive if it weren't for their eagerness to raise the taxes the rest of us pay to essentially fund programs that would help the same people that much charitable giving helps.

Brooks goes on to note another astonishing fact:

In 1996, the General Social Survey asked a large sample of Americans whether they agreed that, "The government has a responsibility to reduce income inequality." Those who "disagreed strongly" with this statement gave an amazing twelve times more money to charity per year, on average, than those who "agreed strongly." People disagreeing strongly also gave nine times more to secular causes than those agreeing strongly, and even gave more to traditionally progressive causes, such as the environment and the arts.

When the government becomes anything more than a last resort for people who are struggling it does several things. It discourages the development of the virtue of charitable giving, it generally does little to help the people who receive the taxpayers' largesse, and it impoverishes you by taking more money out of your wallet and filtering it through several layers of bureaucracy before it gets to its intended recipient.

I read once that out of every dollar taxed for welfare, only twenty seven cents makes it to the person in need. No wonder people don't want the government doing welfare.

RLC