Hoover InstitutionStanford University
The Government's Effect On Charitable Giving

Published: August 12, 2019

The greatest period of charitable activity occurred in the 19th century, when government spending was small as share of the economy. However, once the government spending grew, it diminished the incentives for individuals to give voluntarily. When people believe the government should take care of those in need, charitable giving falls.

Discussion Questions

  1. Do you think the government and charitable organizations should work together?
  2. Do you think that locally run charities are more effective at identifying who needs help and how to best to help them?

Additional Resources

  • Watch “What Do We Owe Our Country?” with Milton Friedman. Available here.
  • Read Milton Friedman’s essay, “Why Government is the Problem.” Available here.

Cast

Milton Friedman

Milton Friedman

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