Posts Tagged Bill Gates

The Morality of Profit: (Mis)defining Generosity in a Win-Lose World

"Give me all your money...or else!"

This week at Common Sense Concept, I discuss Tom Palmer’s new video on the “morality of profit” as a follow-up to my post on whether capitalism is compatible with Christian values.

Palmer uses the charity efforts of Bill and Melinda Gates as a launching pad for discussion, focusing on their professed desire to “give back” to society. The problem with such language, Palmer notes, is that “you can’t give back what you didn’t take.”

The Gateses did not, of course, take anything, as true free exchange would not permit it:

We are not forced to fill company coffers against our will. We are not doomed to buy oranges or apples if the price isn’t right. Instead, we are free to collaborate of our own free will and by our own consent. In such a world, profit is merely a symbol of community value. If we reject profits as immoral, we should be prepared to reject the community that empowers it. The tricky part, as I’ve mentioned before, is that this is most often ourselves. This is what the “morality of profit” all boils down to: whether mutual exchange is indeed mutual.

This tells us something about the morality of profit, but Palmer’s discussion also teaches us something about the nature of generosity — namely, that when we misunderstand the way wealth is created, we also misunderstand the ways in which (or through which) our generosity should be and can be channeled and expressed.

Indeed, understanding this process is crucial for understanding how God calls us to use our wealth:

By diluting our charity to some redistributionist obligation, we dilute the very potential of our charity, both for ourselves and our communities. How are we to maximize our generosity and distribute compassion effectively if we harbor faulty, guilt-ridden sentiments about Read the rest of this entry »

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Winning to Live: Competition Is About Discovery

horse, racing, competitionEconomist Friedrich von Hayek once referred to competition as a “discovery procedure.” This week at Ethika Politika, I explore what that means for us as moral individuals.

Far too often we confine our thinking about competition to matters of “justice” or “fairness.” Such considerations are certainly relevant and important, but I fear that we tend to fall back on them as a way of avoiding the impending risk and vulnerability within the competitive process.

As I argue, we must be careful not to lose sight of the ultimate purpose or value of competition, which is, above all, discovery.

Here’s a brief excerpt:

Competition leads to reaction. It demands, provokes, and prods. It draws out information. When we engage in competitive activity, we are bound to uncover something new. We will not be certain of the end goal, and we will not be certain of the end result, but the information we gain throughout the process will point the way towards true value.

Here’s another:

The good news is that although competition may lead to a frustration of our original intentions, it need not be the frustration of our entire destinies. It may tell us that our role in the larger equilibrium (Hayek prefers the term “order”) has shifted, but it is up to us to find ways to provide value in the shifting frontier. We can certainly remain idle as we watch the world transform, or we can participate and innovate, continuing to develop as individuals and as a society.

Read the full article here.

Read the rest of this entry »

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The Billionaire’s Dilemma: Charity vs. Job Creation

Carlos SlimI have thus far expressed mixed feelings about the pledge by Bill Gates and Warren Buffett to donate half of their wealth to charity, so I thought it would be fitting to pass on the latest addition to the narrative. According to Bloomberg, Mexican billionaire Carlos Slim recently said that he would prefer to use his money for job creation rather than donate it to [so-called] anti-poverty causes (HT Dambisa Moyo).

Here is Slim’s perspective:

“The only way to fight poverty is with employment,” Slim said at a conference in Sydney today. “Trillions of dollars have been given to charity in the last 50 years, and they don’t solve anything.”

As I’ve mentioned previously, I obviously don’t think philanthropy is “bad,” nor do I think it is something we should necessarily avoid. But if we are talking about addressing the particular concern Slim is pointing to — namely, “fighting poverty” on a global scale — it seems highly convincing to me that increasing employment through traditional investment is usually the most successful solution from a macro perspective. (Could I add any more caveats!?)

But that doesn’t mean it always is (or even that it actually is). There are plenty of counterarguments that leave the solution a bit up in the air for me. For example, philanthropy has the potential to bring plenty of spiritual benefits to the table by funding missionaries, planting churches, and simply promoting Christ-like behavior. Depending on what you believe, such spiritual transformation could indeed lead to Read the rest of this entry »

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Charity as Investment: Bill Gates and the Malaria Vaccine

A couple months ago I wrote a post about the recent pledge by Bill Gates and Warren Buffett to give away at least half of their riches to charity. In my post, I noted the potential of such charity while emphasizing that giving away your money is not necessarily as transformative as investing it for profit.

However, if one does decide to divert their resources to charity, the main focus of the discussion becomes centered on whether those resources are being allocated efficiently and effectively. 60 Minutes recently interviewed Bill and Melinda Gates about the targets of their charity, and their responses indicate that their efforts are not lacking in the realm of care and consideration.

You can watch the video here (HT David Henderson):





As the report indicates, the Bill and Melinda Gates Foundation has 850 employees, all of whom are hired to determine “which science or development projects are worthy.” This reminds me of the daunting task undertaken by John D. Rockefeller.

As I’ve already mentioned, we are bound to disagree on where and how we think certain resources should be allocated because we all see value differently. For example, as a Christian, I am particularly concerned with the limits of Read the rest of this entry »

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Business as Philanthropy: Gates, Buffett, and Transformative Change

Bill GatesBill Gates and Warren Buffett recently pledged to join 40 of America’s wealthiest people in donating at least half of their riches to charity. For Gates and Buffett alone, such a pledge will translate into at least $115 billion in charity.

This sounds wonderful on the surface, but philanthropist Kimberly O. Dennis is a bit skeptical. In last week’s Wall Street Journal, Dennis argued that “the wealthy may help humanity more as businessmen and women than as philanthropists.”

As Dennis explains:

What are the chances, after all, that the two forces behind the Giving Pledge will contribute anywhere near as much to the betterment of society through their charity as they have through their business pursuits? In building Microsoft, Bill Gates changed the way the world creates and shares knowledge. Warren Buffett’s investments have birthed and grown innumerable profitable enterprises, making capital markets work more efficiently and enriching many in the process.

In the end, Dennis’ criticism seems to serve as a simple reminder of which approach is most promising when it comes to bringing about transformative change.

While businesses may do more for the public good than they’re given credit for, philanthropies may do less. Think about it for a moment: Can you point to a single charitable accomplishment that has been as transformative as, say, the cell phone or the birth-control pill?

On this last question there is bound to be disagreement, particularly because we all view value differently. For one person the birth control pill is extremely important. For another, feeding one hungry mouth is Read the rest of this entry »

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