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God's Politics

‘Who Cares?’ — A Visual Guide to Americans’ Charitable Giving

by Eugene Cho 01-21-2010

banner-Finding-Your-Way-in-the-New-Economy

This is a fascinating graph and analysis of “giving” from Mint. If you haven’t seen it, take a few moments to study. Would love to read your thoughts and observations.

Americans lead the world in charitable contributions, giving $300 billion a year to charities. Sounds like a lot, right? But this is just a drop in the bucket compared to the over One Trillion Dollars needed to keep U.S. charities in operation, more than the U.S. government collects in taxes. The rest comes from their own assets, government support, and foreign investment. Our visual guide to giving shows who’s paying and offers some tips on how to pick a charity of your own.

Eugene ChoEugene Cho, a second-generation Korean-American, is the founder and lead pastor of Quest Church in Seattle and the executive director of Q Cafe, an innovative nonprofit neighborhood café and music venue. You can stalk him at his blog or follow him on Twitter. He and his wife are also launching a grassroots movement, One Day’s Wages, to fight extreme global poverty.

Categories: Economics, Ministry
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  • jdquest
    This was an interesting article and much to think about. I think it is amazing that people are so generous in this country and still can't see the suffering that is occurring for those who don't have healthcare. The conservatives, who are supposedly so generous, are the very ones who can't bear to see the government spend the money to alleviate that suffering. It makes no sense to me. If they won't allow the government to do it then get on the ball and make it happen another way. It is past time to fix this problem and already too late for some people.
  • fundamentalist
    Wal-Mart employees know every product’s profit margins, and think their job is preferrable to working at Target and way better than working at a mom-and-pop grocery store. http://www.boingboing.net/2009/02/01/life-at-wa...
  • mscynthia
    China is taking that money and creating
    at least 500 engineers to one of ours.
    We are going to end up buying wind mill
    technology from them.
    We just don't have the commitment to
    education or early childhood music. The
    preparation you need for creating
    engineers.
    Would you know what to do with a plug and play solar shutters for your windows if you could get them at the hardware store?
  • mscynthia
    I have had my share of working at retailors as a Youth. I won several of the employee competitions in sales. I did not get alot of training on the job. They were not interested in providing me with more skills. Just keeping me where I was. So I left them to study in Japan and discovered I could make more teaching English in Japan.
  • mscynthia
    So have you met any old Wall streeters at Wal Mart in the check out lanes behind the counter?
  • mscynthia
    I'm over at my Credit Union. When are we going to start a micro-lending system in the US?
  • mscynthia
    With the next hurrican season only a few months away we may end up drowning them first.
    We don't have a clue what they really need to face the future. We are relocating them to tent cities below treeless slopes. We may be faced with making some impossible choices for them. We ought to be humbled.
  • mscynthia
    So did you mention volunteering
    one day a week at your favorite
    charity so you can keep track of
    what they are actually doing?


    Where is WalMart sending people for
    their health care these days? How
    much is that costing your county?
  • ... the industrial revolution put an end to mass starvation.

    But that caused a different set of problems. When whole industries went belly-up (such as steel in the 1970s where I live), the area declined.

    WalMart has not destroyed any manufacturing jobs, only other retail jobs. And the manufacturing jobs that have gone overseas are the low paying, low-skilled jobs such as the garment industry and toy making. The US is still the world's largest manufacturer and our manufacturing sector is almost as large as all of China's economy.

    Small comfort to people who can't find a good-paying job and have to settle for minimum wage.

    Government subsidies of education has driven the cost beyond the reach of most Americans, but it always has been. College education was always something for the wealthy. The difference today is that so many people have college degrees that companies decided to use degrees as a filtering tool for hiring.

    For such things as engineering and science -- what's required for the type of jobs you described -- oh yes, you always needed a degree because of the higher mathematics involved, which is why almost all such research begins at universities. (I started my college career in engineering.) And in fact, government subsidies for education have actually declined over the past couple of decades; state support for, say, my college alma mater keeps dropping yet its costs keep rising. (Another school I attended had low tuition rates because of all the private fund-raising it did; at another, private school near me, it's underwritten by five foundations.)
  • You have to have resources to be a capitalist, and no conservative I know is talking about getting the poor such resources; even under a Marxist political system the poor can get them. But here's another issue, related to the law of supply-and-demand: Where do you get your customers?
  • fundamentalist
    DHFabian,
    Charity is admirable, but it is only a stop gap measure. Charity has never lifted entire nations out of poverty they way capitalism has. Compare S. Korea with N. Korea. S. Korea isn't rich because of charity and N. Korea poor because it lacks charity. And look at the rise in wealth of the average Chinese from near starvation in the 1960's. Charity had nothing to do with it. The Chinese maintained their communist government and freed their markets a very tiny amount in the early 1980's. As a result, 100s of millions have been lifted from near starvation to relative wealth.

    If you really care about the poor, look at what really benefits the poor. Nothing has the record of capitalism for helping whole nations out of poverty.
  • fundamentalist
    Scat, you're right that today WalMart prices aren't that much lower than competitors such as Target. BTW, Target doesn't pay their employees any more than does WalMart.

    But here's the big difference: that's today. The past wasn't like today. When WalMart became large, no one could sell goods as cheaply as they could. They forced all of their competitors to adopt their business model. That's why WalMart is no longer the cheapest. But WalMart forced change in the entire retail sector. McKinsey and Co. attributes the huge leap in productivity in the 1990's to other retailers adopting WalMart's business model. Thanks to WalMart, other stores such as Target and K-Mart are serving the poor, as well as the Dollar Store and others.
  • fundamentalist
    "When was there ever "starvation poverty" in the West?"

    The Dutch Republic of the 15th & 16th centuries was the first to escape the cycle of mass starvation and famine when crops failed. Other countries remained caught in the cycle for several centuries. England followed the Dutch quickly and the industrial revolution put an end to mass starvation.

    "jobs that have been "destroyed" were often well-paying and highly-skilled jobs..."

    Simply not true. WalMart has not destroyed any manufacturing jobs, only other retail jobs. And the manufacturing jobs that have gone overseas are the low paying, low-skilled jobs such as the garment industry and toy making. The US is still the world's largest manufacturer and our manufacturing sector is almost as large as all of China's economy.

    "To get jobs in those fields you generally have to get a post-secondary education..."

    That wasn't the case a few decades ago. Government subsidies of education has driven the cost beyond the reach of most Americans, but it always has been. College education was always something for the wealthy. The difference today is that so many people have college degrees that companies decided to use degrees as a filtering tool for hiring. In addition, professional societies formed to limit members to those with college degrees by getting laws passed requiring it. For example, a few decades ago anyone could take the bar exam to become a lawyer. But lawyers wanted to limit their competition and increase their fees, so they persuaded legislators to pass laws requiring a degree from a law school before you could take the exam. Again, the government has conspired with business to make life for the working man as difficult as possible.
  • DHFabian
    Charitable donations that trickle down to America's poor can keep a person going for another day (or a few), but cannot make a dent in our current poverty crisis and the suffering that it caused in conjunction with the loss of the entitlement to welfare aid. This would require a legitimate, government-run program that ensures equal access -- and a needs-based entitlement, even to those who are unable to access food pantries, etc. While deeply grateful for charitable donations, millions of America's poor live rurally, and charity simply doesn't trickle down to them. As a result, we have people living in abandoned barns, scraping by to survive, often enough not surviving.You would think America could do better.

    Another problem with charitable donations is that Americans tend to easily develop a unique malady called "compassion fatigue". For example, a middle class American who sends a $50 donation (usually to a foreign country) will feel "wiped out" by his own generosity, and will feel unable to donate for a a long time after this.

    That's just how we are. That's why we ended welfare while giving billions of dollars of aid to corporations. Our compassion for the poor is sporadic, and generally only theoretical. After an act of generosity, we jump to any possible reason to resent and criticize the recipients, thereby giving us an excuse to never again donate.

    With Hurricane Katrina, Americans responded immediately with donations -- which was followed immediately with a media blitz highlighting the victims as the worst of people, real low-life trash, breaking into stores, etc (imagine that, desperate people acting desperately!). And America turned its back. I wouldn't be surprised if we soon see the same response to Haiti, as Americans complain that they aren't getting their homes, jobs and lives back together quickly enough to suit us.
  • Poverty reduction requires the destruction of high cost methods by lower cost ones. In a nut shell, that is how the West climbed out of starvation poverty to the wealth we have today and reduced poverty to a fringe element
    instead of the majority.


    When was there ever "starvation poverty" in the West?

    WalMart hires people that no one else will hire. And why won't other people hire them? Because they lack the skills and experience necessary for other jobs. So WalMart gives them a chance to learn those skills and get experience to move on to better jobs. That's how entry level jobs are supposed to work.

    Entry -- to what? What you don't realize is that the jobs that have been "destroyed" were often well-paying and highly-skilled jobs, in manufacturing. The service industry, by contrast, has always been low-paying unless you're in management, and even there you have to work an insane number of hours -- which causes people to neglect their health, families etc. just to make ends meet.

    Of course you can't see any new jobs right now. We're still in a major depression. But did you foresee the rise of personal computers, cell phones, bullet trains, nanotechnology, or any of the many new technologies that have destroyed old jobs while creating vastly more new ones? Of course not. Few people did.

    You forget one thing: To get jobs in those fields you generally have to get a post-secondary education (in fact, graduate-level), which is becoming less and less affordable by the day. And how do you pay for such if the only job you can get is at Walmart?
  • For starters, no, tipping employees is actually not allowed and they can be punished if they accept, else I'd do it. If the prices were higher because they wanted to raise employees wages, I'd have no problem with it and in fact be glad. Failing those avenues, I frequently return to Wal-Mart primarily for the purpose of maintaining the relationship I have with the people there, and occasionally bringing by some "non-tip" treats to make their days better, since I can do little else without harming them more than helping and I'm not so delusional to think that my individual boycott will turn the tides of Wal-Mart. But for the record, I truly, sincerely, honestly do appreciate the personal attack on my integrity to make your point. Helps me know that I'm right.

    I could make my case further and clarify what I meant, but I don't feel it will be a terribly productive use of my Saturday. Good day, sir.
  • brianregrut
    When was the last time you arrived at the checkout counter and said to the cashier, "Please add 20% to the bill because I want to contribute to keeping your employees provided for."?

    If you're like most people, you'd be more inclined to find out if you can make the purchase at less than the stated price!

    That is exactly what happens at Wal-Mart and every other business establishment in America. They compete with other employers for people who have a certain skill set. They then bid for those people's time.

    If they bid too low, a competitor may offer a higher price and deprive Wal-Mart of an employee with a wanted skill set. If they bid too high, they may upset their operating margins making them less competitive in the marketplace.

    Does Wal-Mart pay a fair wage? Absolutely. As a large company they probably do a better job than most of identifying the wage that will give them the optimal pool of applicants from which to choose. They have mastered the art of balancing salary, benefits, turnover, training, etc. to optimize their labor costs.

    Remember, Wal-Mart is not an amorphous entity. It is a collection of people who operate together in an environment of mutual trust. The employment policies are published for all to see (unlike most of the employers in America). Wages vary from store to store depending upon market conditions.

    So far in America, each of us is free to choose how we will exchange our time, talents and energy for the necessities of life. If we cannot earn enough to meet our needs, there are huge safety nets to catch us when we fall.

    If you don't like the way Wal-Mart pays its employees, then don't shop there. If enough people shop elsewhere, then Wal-Mart will adjust its policies to win back customers. Unfortunately, if we all boycott Wal-Mart, not only will we lose the benefits that Wal-Mart brings to the communities in which it operates, but we will also force more friends and neighbors onto unemployment lines.

    Who shops at Wal-Mart? People who, because of their socio-economic status want the lower prices Wal-Mart offers.

    Who profits from Wal_Mart's smart business practices? Everyone who owns Wal-Mart stock.

    Who owns Wal-Mart stock? Teachers and welders and retail clerks and firemen and students--everyone who has a pension or 401K plan or mutual funds or trust accounts, or who has money on deposit in a bank--in which Wal-Mart stock is held.

    So the next time you make a purchase, ask yourself, am I prepared to pay more for this purchase in order to improve the life of the person taking my money? Nothing prevents you from taking money out of your pocket and giving it as a gift to the employee. Because like the person who makes a choice to go to work at Wal-Mart, you have the choice to enrich that person's life.
  • fundamentalist
    "People often work at Wal-Mart precisely because they can't find anything else."

    Exactly! WalMart hires people that no one else will hire. And why won't other people hire them? Because they lack the skills and experience necessary for other jobs. So WalMart gives them a chance to learn those skills and get experience to move on to better jobs. That's how entry level jobs are supposed to work.

    The history of progress has been a history of job destruction. Would the world be better off if states had refused to let car makers destroy the jobs of buggy makers? Or going back to the Luddites, would we be better off paying the high cost of hand spun and woven clothe in the cottage instead of the cheaper price of factory woven cloth? Of course not. Poverty reduction requires the destruction of high cost methods by lower cost ones. In a nut shell, that is how the West climbed out of starvation poverty to the wealth we have today and reduced poverty to a fringe element instead of the majority.

    Yes, in the short run it's painful for those who cling to the old methods. But new methods that reduce costs for everyone also create new jobs for those displaced by them. But I'm talking about the long run, at least a decade. Of course, most people don't care about the long run.

    Of course you can't see any new jobs right now. We're still in a major depression. But did you foresee the rise of personal computers, cell phones, bullet trains, nanotechnology, or any of the many new technologies that have destroyed old jobs while creating vastly more new ones? Of course not. Few people did.
  • jenfs
    Yes, Walmart does give 1% which ends up as you say "not being chump change," but Target gives 5% and doesn't have moral/ethical issues to the same extent as Walmart. Might be worth "investing" in Target a lot more instead of Walmart!
  • grebjack
    I wish I could buy this on a poster.
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