People who think in terms of scarcity want billionaires to "justify" themselves by donating to traditional causes. With an abundance mentality, you realize that the wealthy help mankind no matter what they do with their money.
1. Let's say they buy luxury goods, like a Rolls Royce. Their money is then supporting jobs. The money is flowing to the dealership, salesman, service techs, etc. They, in turn spend money on themselves and their families, etc. So, if a billionaire doesn't give to charity himself, there is a good chance people downstream of his spending will donate.
2. If, instead, the wealthy save/invest the money, then it is used to invest in companies and businesses, creating jobs.
3. Even if they burned their money in a big bonfire, it would help mankind, because it would raise the value of all remaining dollars relative to goods (less supply of dollars).
The only thing that wealthy people can hurt are certain geographic areas, when they take their money elsewhere. For example, a corrupt African dictator gets his wealth locally, but then doesn't re-spend it locally - instead he sends it abroad. His country will have a net loss.
Even in this example, however, on a global scale, the money is not wasted. The dictator's money will help people somewhere in the world by getting invested or flowing through luxury good purchases. Maybe some of the people benefiting from his spending - such as a Ferrari dealer in France - might even donate money back to the dictator's country (not that this makes up for what he took, of course).
Monday, 5 March 2012
Do Billionaires Have To Give Charity to Help Mankind?
Posted on 13:31 by Unknown
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