Crowding Out Private Money: Why A Growing Government Undercuts American Philanthropy
The dramatic growth of government now underway makes most Americans rather uneasy. Economists in particular fear that higher spending by government causes long-term harm to business investment and economic growth, especially when the country already struggles under heavy public debt. But another danger must not be overlooked: the harm governmental expansion does to philanthropy. This vital sector of society will see its productivity drained as private dollars that would have been spent by charitable and philanthropic entrepreneurs are channeled instead into the hands of politicians and bureaucrats who may have short-sighted needs.