The American Approach to Philanthropy

The United States began as a country dedicated to small government. Its first governing document, the Articles of Confederation, attempted to avoid the formation of a powerful, repressive government. Although that document was subsequently replaced by the United States Constitution in 1789, the tracks of British rule remained, engrained in the American mind.

In addition, Americans had a particularly individualistic approach toward life, stressing self-reliance. The very idea of westward expansion by many pioneers was about moving away from a larger social group, in the individual spirit of adventure or financial enterprise.

Through the years, these underlying American differences from Europeans have been manifested by a relative paucity of social finance measures. Currently, there are many people that criticize Americans for their selfishness and lack of philanthropy. Whereas the authors of “Why Doesn’t the United States Have a European-Style Welfare State?” suggest the discrepancy derives from the American beliefs that redistribution favors minorities and that if someone is poor it is his or her own fault, I argue that critics ignore a the fundamental mentality of Americans.

True, the United States government spends less on welfare programs than most European countries. But that is not because they see the poor as lower for a reason. Rather, increased taxation leads to greater inefficiency in the economic system. With a subsequently lower GDP, there would be less to spend on welfare regardless. Moreover, Americans have always been skeptical of government intervention, especially economic intervention, because of the individualistic and capitalistic foundation of many individuals. But that does not mean they are unwilling to giver their own personal money. The article mentions that Americans give more money per capita than any of the other countries in the survey. People in the United States would rather feel charitable than feel like their money is being taken for shady purposes.

In summary, the American way creates greater financial efficiency, which generates a higher GDP. People have more money to spend, and will contribute more of it if they get to chose where it goes. Americans are no less charitable than Europeans. They just like to bypass the bureaucracy.