When Markets Are In Trouble, Charity Is Too

Katherine Mangu-Ward | November 12, 2008

From The New York Times:

In recent years, rapid wealth creation, particularly on Wall Street, has resulted in a surge not just in giving, but in a new, businesslike approach to giving that I call “philanthrocapitalism.” Now, people are asking whether the recent struggles of some of capitalism’s biggest winners, and the growing suspicion of some of capitalism’s core methods, including Wall Street’s use of leverage, mean that philanthrocapitalism is in trouble, too.

Read the rest for namechecks of the X Prize and Cory Booker. The piece is by Matthew Bishop, who cowrote Philanthrocapitalism: How the Rich Can Save the World.

Comments

Paul|11.12.08 @ 4:02PM|#

I also hear that if people aren't making money and engaging in transactions, governments get into trouble, too.

cynical about goverments|11.12.08 @ 4:35PM|#

But for the governments, it can be worth it.

|11.12.08 @ 4:50PM|#

Silly, Paul. Revenue doesn't matter when you have power of the printing press.

Jerry|11.12.08 @ 4:50PM|#

"Rapid wealth creation," "capitalism's biggest winners." How about we let free markets actually work. Charities are a symptom, not a cure.

|11.12.08 @ 4:58PM|#

Winter is coming.
It's going to be cold.
It's going to harsh.
It's going to be long and bitter.
And only the strongest shall survive to see the spring.

|11.12.08 @ 5:00PM|#

Prepare ye then
For the coming PAIN.

Naga Sadow|11.12.08 @ 5:35PM|#

Whoa! Warren sometimes you are to deep for your own good.

squarooticus|11.12.08 @ 5:41PM|#

DOOOOOOOOOM

|11.12.08 @ 5:41PM|#

Wind time, wolf time
There shall come a year
When no man
His brother shall spare

-- Icelandic Viking poem, circa 13th century

(As long as Warren's being bleak and depressing.)

|11.12.08 @ 5:44PM|#

You're too negative, Warren. Just get yourself a telepathic dog named Blood, or, alternatively, a V8 Interceptor and sawed off shotgun. Thusly shall you be adequately prepared to survive.

zoltan|11.12.08 @ 6:11PM|#

Warren, is that ASOIAF reference?

|11.12.08 @ 6:41PM|#

Oh, don't worry guys - if Il Duce can make us save by force (by taking 401(k)s http://www.carolinajournal.com/exclusives/dems-target-private-retirement-accounts.html ), Il Duce can perfectly make us charitable by force, no wealth increase necessary. It just takes the triumph of the will . . .

mike farmer|11.12.08 @ 6:46PM|#

One more reason to release free enterprise and allow greater production and greater growth. Government can only print so much paper, and the future of the needy might depend on private charity which depends on economic growth which depends on freedom.

Ironic|11.12.08 @ 7:26PM|#

Apply for bailout money! No, no, you probably won't get any but it would send a great message if lots of ordinary people applied. It states you must be a bank holding company. If you are a U.S. taxpayer, you do qualify; you do own a few banks now.

Here is the form:
http://www.ustreas.gov/press/releases/reports/applicationguidelines.pdf

If nothing else it may make the wheels of government even more inefficient. That is always a good thing.

Travis|11.12.08 @ 7:39PM|#

Is United Way TBTF?

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Ironic|11.12.08 @ 8:07PM|#

"Is United Way TBTF?"

That depends on how much money it donated to political campaigns.

mike farmer|11.12.08 @ 8:20PM|#

I wonder if -- too sexy to fail -- will qualify the prostitute industry for bailout money? I mean if things get really bad. Too kinky to fail?

economist|11.12.08 @ 8:45PM|#

mike farmer,
People seem to be afraid that if we release the free market, it will destroy us all with its capitalisty capitalism, which we know* created the recession.

*was stated as such by the New York Times.

zoltan|11.12.08 @ 10:01PM|#

Speaking of ASOIAF, EEEEEE.

Seward|11.12.08 @ 10:35PM|#

Paul,

I also hear that if people aren't making money and engaging in transactions, governments get into trouble, too.

That depends on the size of the political class. Witness all the "successful" tin pot dictators around the world.

Lefiti|11.12.08 @ 11:01PM|#

Capitalism is a roller coaster ride. But interedering with nature's course is just wrong. Let the invisible hand sort it out.

anarch|11.12.08 @ 11:21PM|#

Am I the only one who hasn't seen an updated H&R articles page for the past 7 1/2 hours? This one is the latest on my screen.

Bob W.|11.12.08 @ 11:23PM|#

Big government, along with a bunch of other stuff better left forgotten, is staged to make a comeback in 2009. Sadly, capitalism may have to wait a year or two. . .

Don the libertarian Democrat|11.12.08 @ 11:28PM|#

Friday, October 17, 2008
WaMu Woes

Some bad local news on Bloomberg:

http://www.bloomberg.com/apps/news?pid=20601109&sid=aCdkICM3naWs&refer=home

"Seattle Music, Fireworks Fans Fret as WaMu Bust Threatens Funds

By Peter Robison and Pham-Duy Nguyen

Oct. 17 (Bloomberg) -- Weeks before Washington Mutual Inc.'s bankruptcy, Seattle arts philanthropist Jim Tune met with his staff at a wooded retreat to discuss how a lagging economy might hurt donations. The company that donated the meeting space: WaMu, the city's homegrown thrift.

WaMu's collapse last month has sent chills through the city's charities as well as depositors and employees. The 119- year-old bank sponsored an annual Fourth of July fireworks show, gave money to food and shelter programs, and supported the Seattle Symphony and theater groups.

``It's bad timing,'' said Claire Acey, a spokeswoman for Northwest Harvest, a food bank in Seattle. ``We're just now seeing layoffs and unemployment rising. We're likely to experience a decrease in donations.''

I guess private business is important for charity and aid in a community.

Too true.

VM|11.13.08 @ 8:05AM|#

Stevo: may as well and add a Russian one, too


We're all so sad of grandma's passing
We shall miss her.
alas, it is winter
And this year we shall at least have meat

LarryA|11.13.08 @ 10:09AM|#

But aren't all capitalists greedy Ebenezer Scrooge charicatures?

Lefiti|11.13.08 @ 11:55AM|#

Mixed markets--that's all we've ever really had. Truth be told, government intervention makes everything run better. But you libertarians keep up the dogmatic purism. You provide a refuge for former marxists and others with a low ambiguity tolerance. Reality sucks.