The headlines came yesterday regarding Warren Buffet’s $31 billion gift to the Bill & Melinda Gates Foundation. It’s an astounding donation that will reverberate decades into the future. Primarily, of course, it will significantly impact the reach of the Gates Foundation in its global health initiatives, which are dedicated to fighting malaria, tuberculosis, AIDS and numerous other diseases worldwide.
Beyond the headlines, though, are a few other intriguing story lines. One of these topics was explored today by the Christian Science Monitor. It centers not only on the work being done by the Gates Foundation, but the way in which the culture of philanthropy may be changing.
…what’s most remarkable is not just how much the world’s two richest men are giving to charity, it’s how they hope to do it. … he sees the Gates Foundation as part of a larger trend toward a more entrepreneurial style of philanthropy. … ”venture philanthropy” involves partnering with government and other charitable groups. Money is contingent on hitting bench marks. … (There) is the intense desire to not waste money and to use partnership rather than paternalism.
Meanwhile, buried at the end of a NY Times story is a particularly strong statement by Buffet on the tradition of meritocracy in the U.S.
Mr. Buffett was scathing yesterday in describing his feelings about estate taxes, which the Bush administration is trying to kill. The ability of rich men to pass on “dynastic wealth” to their grandchildren is offensive to the American tradition of meritocracy, he said.
He gets particularly upset at his country club, he said, hearing members complain about welfare mothers getting food stamps “while they are trying to leave their children a more-than-lifetime-supply of food stamps and are substituting a trust officer for a welfare officer.”
It’s an intriguing cultural question that has often been lost in the tax debate, as U.S. society was founded as a reaction to aristocracy and has always been admiring of the self-made individual. Buffet’s view seems to be that wealth, once made, should benefit society and that each generation should earn at least some of its own way. It’s a view in line with a long American tradition that favors both charitable giving and self reliance.
Just some interesting food for thought that goes beyond the global health implications of the new Gates-Buffet partnership.