The 1806 Russia depicted in War and Peace had three big ways to “help others”: medicine, school, and alms (= food, shelter, etc. for the weak, e.g., old, crippled, poor, etc.). From this, I suggested:
Modern liberal obsessions with such areas are not a local historical accident.
Seeking more data, I found a book on what foreigners saw in 1700s England, which also lists these same three as the main forms of charity (quotes below).
What about charity-related spending today?
- US direct donations of $291 billion by organization type is 35% religion, 14% school, 8% medicine, 5% arts, and 9% “human service”, containing most local alms, and 5% “international affairs”, containing most foreign poverty assistance.
- US non-profit revenue of $1800 billion breaks down to 51% medicine, 14% school, 2% arts, 1% religion, 7% “multi-purpose and other human services”
- US government spending of $3,800 billion (41% of US GDP) breaks down to 16% military, 18% medicine, 16% pensions, 15% school, and 11% “welfare.”
As government spending is now 13 times direct donations, if voters treat any substantial fraction of that a substitute for private charity, then most “charity” today is channeled via government. Pensions plus welfare makes 27% of government spending apparently going to alms, or about 11% of GDP. Total US education spending is $972 billion, about 10% of GDP.
Bottom line: About 18% of US GDP goes to medicine, 11% to alms, and 10% for school. So we now spend huge sums (~40% of GDP) on areas related to what were once the three main charities.
I’d guess that 1750 spending on alms, medicine, and school was far less than 40% of GDP. This all raises two questions:
- Why such a consistent focus on the same three charity-related areas over such a long time? In general the simplest way to help folks is to give them cash. One needs other relevant factors to explain a desire to help in other ways. And to explain a consistent focus over many centuries, such factors must stay relevant over many centuries.
- Why did charity-like spending grow from a tiny to a huge fraction of GDP? Why are we today so much more eager for charity-like spending?
Those promised book quotes:
Continue reading "Classic Charities" »
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