We’ve all heard about the “greedy rich people” trope. This caricature dates to Charles Dickens’ A Christmas Carol and even earlier. We are trained to believe that rich people are always greedy and that, by extension, those that promote the free market principles of capitalism are enabling greed. During this special Christmas season, let’s see how the facts measure up to this common trope.
According to the National Center for Charitable Statistics, neither the highest income brackets nor the lowest income brackets are the biggest Scrooges. Those earning $10 million per year or more give the greatest percentage of their income to charity, at an average of 9.3%. As a percentage, those making under $50,000 per year are the next most generous group, giving an average of 8.4% of their income. Shockingly, it is actually the middle class that is the least charitable group of all. Yet, you’d have a hard time trying to find a politician who will criticize the middle class.
Capitalism is not the opposite of generosity. In fact, capitalism requires generosity to be effective. When we empower families to control their own finances, we expect them to choose to invest in their communities of their own free will, not by force through their tax dollars. Through personal generosity. benefactors can create meaningful connections with the people served by their contributions. When was the last time you got that kind of connection out of handing over a chunk of your paycheck to the IRS? Obviously, the voluntary generosity of individual families is more powerful and more impactful than a welfare state. The free market empowers people regardless of their life circumstances or income level.
At the end of the day, the important thing is not what economic class you occupy, but that you actually give. Charitable contributions aren’t just for the wealthy or the poor; they are for all of us. As Charles Dickens so expertly pointed out, generosity is good for others, good for the community, and good for the soul. Don’t be a Scrooge this Christmas season. Do what any true proponent of free market capitalism would do and give generously.
