NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, July 24, 2017

Exceptionally wealthy people aren’t a likeable demographic, but they have an easy way to boost personal appeal: Become an exceptionally wealthy philanthropist. When the rich use their money to support a good cause, we’re compelled to compliment their generosity and praise their selfless work.

This is entirely the wrong response, according to Rob Reich, director of the Center for Ethics in Society at Stanford University.

Big philanthropy is, he says, “the odd encouragement of a plutocratic voice in a democratic society.” By offering philanthropists nothing but gratitude, we allow a huge amount of power to go unchecked. “Philanthropy, if you define it as the deployment of private wealth for some public influence, is an exercise of power. In a democratic society, power deserves scrutiny,” he adds.