causal

Government Spending Crowds Out Charitable Giving

Government spending crowds out charitable giving—because people feel they already contribute through taxes and because there is less private money left to give—and government money comes with strings that contaminate it: central officials dictate spending, overhead caps (e.g. 11%) force organizations to steal from other programs, and Europe's heavy government social service correlates with much lower charitable giving.

causalpending

Speaker

Dan Pallotta

Evidence Quote

I think that's why you see, in Europe, there's so much government social service that you see much lower levels of charitable giving.

Source

Dan Pallotta on Charity and the Culture of the Non-Profit SectorEconTalk
Created: 6/13/2026, 12:09:33 AM

My Notes

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