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Ask HN: Why are billionaires not giving more money away?

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41–49 of 49 posts

Re: Ask HN: Why are billionaires not giving more money away?

#41
post #28

Why should they? Why can't the poor help themselves? Most of us won't be poor if we only spent on the essentials. Stop buying material crap. Foster good relationship with family, neighbors and community. Community service at large and help each other. The wealthy get rich because we keep buying more of the crap they make that we don't need.

There is one problem with your theory: There is a serious shortfall of affordable housing in the US. So a lot of Americans are having trouble affording even the basics.

No there's not. Move away from the fancy cities. Move to country and places like Detroit. I did, I'm in Detroit metro. You can buy houses here for what folks pay for a car

Re: Ask HN: Why are billionaires not giving more money away?

#42
post #28

Earlier quoted context omitted.

There is one problem with your theory: There is a serious shortfall of affordable housing in the US. So a lot of Americans are having trouble affording even the basics.

No there's not. Move away from the fancy cities. Move to country and places like Detroit. I did, I'm in Detroit metro. You can buy houses here for what folks pay for a car

I basically did the same thing. I developed a portable income and moved to a small town to get myself back into housing.

But most people can't just up and move wherever they want. The jobs are mostly in the expensive big cities. Even services like Task Rabbit, Amazon Flex or Uber are mostly only available in a short list of very large cities.

Meanwhile, we have torn down about 80 percent of SROs and the like and the default expectation is that young, single people should get a roommate. There is a dearth of genuinely affordable housing near jobs that would allow people to live alone and make ends meet working an entry level job. Those options mostly do not exist.

Pretending this isn't a problem because you found a solution that works for you is pretty LA LA LA not listening. Detroit has affordable housing because so many locals are in dire straits that a charity was created not that long ago to pay the water bills of people getting their water cut off: https://www.detroitwaterproject.org

So, basically, your life works because you saw opportunity amidst this debacle, not because everything is fine in the US.

Re: Ask HN: Why are billionaires not giving more money away?

#43

I wrote about this a while back [1]. Thinking that more charitable donations will create more upliftment is a false premise. Don't get me wrong, charities do serve a function. But most of the human suffering emanates from greedy politics, corruption, and dumb policies. Most of the world problems can't be solved with capital alone. Poor African countries, for instance, have received trillion dollars in aid, and yet be…

Diet for a Small Planet also found that at the time the book was written, there were no countries incapable of feeding their people. Starvation mostly had roots in political problems, including civil war. It wasn't due to an absolute lack if food.

Sending food to starving countries often isn't a panacea. Frequently, the same political problems that caused the starvation in the first place prevent the food from getting distributed to the people who most need it. If it does get distributed, it can change the tastes of locals, who will now want to purchase a Western diet that they can't really afford. This leads to more hunger as people reject a diet of affordable local traditional foods and spend money on meat and wheat and other products beyond their means.

The first half of the book is a political piece. The second half is a vegetarian cookbook. It is one of the best books I have read.

Re: Ask HN: Why are billionaires not giving more money away?

#44
Most wealthy people have an odd psychology. They want to believe that they have earned everything they have, that it is some sort of just reward for their own fiscal righteousness or cleverness or intelligence. Many don't even consider themselves rich and use terms like "we're doing ok" or "middle class" or "normal". But at the same time might feel ashamed to buy the expensive bread because it may make the maid fell uncomfortable. To them all it took was hard work, so why doesn't everyone else do the same, why should their money be taken in taxes or why should they sacrifice for someone else as it is their own fault to be in such a situation.

Most don't factor in how privileged they were to be born into some wealth or with parents who were educated. On the smallest level, it trickles down to the expectation that they would go to college (my poorest friends were never expected, encouraged or helped to do so if anything it was discouraged by their family as a waste of time and money). Going even deeper, if your parents were good with money and had resources to help you, suddenly taking that unpaid internship during a summer isn't a big deal, because dad pays for your living expenses while you do it, to the poor kid it's an impossible notion to work for free in a big city on your own dime. Going into debt for college, forget it dad paid for that too, so now the next ten years of your life aren't sapped by student loans, for some these are crippling. But I think more than anything having the fiscal wisdom of parents who know how to wisely invest is the biggest advantage of all.

All of that said, they get a few things right, blaming others for your problems isn't constructive and their education and hard work is a factor. The only problem is the disconnect between recognizing how lucky you were so that you forget to be kind to those who weren't as lucky (and I don't mean financially kind, I mean just not being a dick).

So to sum up, why don't they donate more or give more money away? They think the world is as it should be, people who earn things have things, people who don't have things didn't earn them. This is an oversimplification, but that's the gist of it.

Re: Ask HN: Why are billionaires not giving more money away?

#45
post #18

Earlier quoted context omitted.

> First do no harm. We don't necessarily know what works. We have rich folks who are pro UBI and that ticks me off. I don't think it is a good solution. I think it just helps salve their guilt at helping to destroy jobs. Rich people don't destroy jobs, efficiency / innovation / increases in productivity destroy jobs. Society doesn't need jobs that are no longer required, and it makes no sense to pay people for things…

The first industrial revolution shortened work weeks, in part to redistribute work. People worked really long hours. That was the norm. With automation, unemployment levels rose while those with jobs continued to work inhumanely long hours. Then people pushed for the 40 hour work week. I think we can again work to lighten the burden of work for the average worker without disenfranchising large numbers of people. I us…

My latest related thing, brand new. Still fleshing it out.

https://news.ycombinator.com/item?id=15781531

Re: Ask HN: Why are billionaires not giving more money away?

#46
post #22

Earlier quoted context omitted.

You're conveniently ignoring the part where Gawker was doing illegal things and therefore lost the lawsuit (getting a verbal smackdown from a judge in the process). Your argument only works if the lawsuits were baseless and/or frivolous. I'm not sure how you can throw shade on Thiel -- would it be any better if media companies could freely ignore the law as long as the affected individuals lack the funds to take them…

You're misinterpreting what i'm saying. Gawker did something illegal and they did deserve to pay for it. The issue is that Thiel had no direct connection to that incident. The issue is that he funded everything because they outed him as gay (completely legal), with the express goal of bankrupting them via lawsuit. He didn't want them to learn a lesson, he wanted to fucking end them. While he didn't do anything illega…

I'd agree with you that a legal system driven by the individual wealth of the parties involved is corrosive to modern society. I don't see how you can claim that Thiel's actions are, barring some internal bias against him or wealth people as a whole.

Outing Thiel as gay is legal. Thiel funding Hogan is legal. The only party here who fucked up is Gawker by flagrantly skirting the law.

Re: Ask HN: Why are billionaires not giving more money away?

#47
post #39

Earlier quoted context omitted.

I downvoted you for; 1) "This communistic nonsense should just go." This is taking the question to an extreme POV you want, not where the discussion was. 2) "Who do you think employs all the people?" Its worth recognising small businesses employs about 50% of the population and is contributing more new jobs than corporates these days.

It's OK I don't mind. 1. This was a bit of rant but questions like this are very related to communist's/socialist's "it's always someone else's fault". This is not productive nor is helpful. It's better to educate yourself on how economics work in the real world. Then you will have a chance to make the world a better place yourself instead of "let's use force to take from productive people and give it to unproductive…

I concur 2) was nitpicky :)

Regarding your statement "let's use force to take from productive people and give it to unproductive people" which is not that good of an idea in the first place from economics perspective (proven empirically in many countries many times)."

Firstly, one can easily argue force to take wealth is already in place. Most people would pay less tax if it was voluntary. Try not paying your tax and see what happens. So pretending this taking by force system doesn't already exist is ignorant or misleading for rhetoric. The discussion really should be about levels of taxation, not should there be taxation (ie forceful taking of money).

Secondly, I'd be interested in where your empirical evidence comes from regarding how taking money 'from productive people" is a bad thing. And clarify 1) productive and wealthy are not the same and should be recognised and clarified what is being debated. I assume we are staying with the core discussion of taking money from billionaires in general, and not focusing on billionaires that rent seek vs value add. And for your empirical evidence, I assume your looking at the usual quoted countries at the more extreme edges like Communist Russia or Venezuela. But please point me somewhere if I'm wrong.

I would suggest you look at history more openly. You should find empirical evidence suggests some level of redistribution is hugely beneficial. No economy in the world has transitioned to first world status without significantly balancing wealth distribution during this time. This could be coincidental but I doubt it. Look at western Europe, Japan, US, Canada, Australia etc through the 19th century. These became first world as they built the service and mass consumer economy. How you ask I am sure? We'll it was many things and redistribution of wealth and assets was a paradigm shift during this transition for all nations, much like what china is attempting now. People make the mistake of thinking first world countries are 'capitalist' in a much more pure sense than reality. All these countries have significant redistribution policy already, most more so during boom times. Think about education, health, unemployment systems, fire departments, roads, libraries, vehicle authories etc

So my general point is that outside the fanatical fringe, people shouldn't debate whether wealth redistribution good or not, but what level of redistribution, or on what financial terms is it beneficial. I dont claim to know whats right, but I feel places like Venezuela massively overcooked policy left, whilst many western nations are swinging a bit too right these days.

Re: Ask HN: Why are billionaires not giving more money away?

#48
post #39

Earlier quoted context omitted.

It's OK I don't mind. 1. This was a bit of rant but questions like this are very related to communist's/socialist's "it's always someone else's fault". This is not productive nor is helpful. It's better to educate yourself on how economics work in the real world. Then you will have a chance to make the world a better place yourself instead of "let's use force to take from productive people and give it to unproductive…

I concur 2) was nitpicky :) Regarding your statement "let's use force to take from productive people and give it to unproductive people" which is not that good of an idea in the first place from economics perspective (proven empirically in many countries many times)." Firstly, one can easily argue force to take wealth is already in place. Most people would pay less tax if it was voluntary. Try not paying your tax and…

[deleted]

Re: Ask HN: Why are billionaires not giving more money away?

#49
post #39

Earlier quoted context omitted.

It's OK I don't mind. 1. This was a bit of rant but questions like this are very related to communist's/socialist's "it's always someone else's fault". This is not productive nor is helpful. It's better to educate yourself on how economics work in the real world. Then you will have a chance to make the world a better place yourself instead of "let's use force to take from productive people and give it to unproductive…

I concur 2) was nitpicky :) Regarding your statement "let's use force to take from productive people and give it to unproductive people" which is not that good of an idea in the first place from economics perspective (proven empirically in many countries many times)." Firstly, one can easily argue force to take wealth is already in place. Most people would pay less tax if it was voluntary. Try not paying your tax and…

"Firstly, one can easily argue force to take wealth is already in place." That's exactly what I had in mind just maybe was not clear enough. Welfare economics/socialism has a lot of support on emotional level and it is understandable that people who might be struggling are asking questions like in this thread. But if we are discussing economic policies we want to implement then a simple analysis and understanding on the very basics on how things work quickly reveals that it's not as simple as "lets take it from the rich and give it to the poor and everyone will be happy". Taxes are necessary but I would argue that welfare is not what it should be used for at all.

About empirical evidence of socialism failures - countless examples where underdeveloped countries tried it - Russia & co (some not voluntary like my country Lithuania), Cuba, Venezuela, Nicaragua (and actually majority of south/central America so no need to list all of them), Somali, Libya (and actually mostly all worst African states where USSR were heavily involved no need to list it), good latest example from Africa is Zimbabwe, from Asia largest one is India, Bangladesh, Yemen, Cambodia, Vietnam, Burma, Laos etc. Basically any poor country you can think of - it will have a history of some form of socialism. Nice example is China. You can compare it to Taiwan and Hong Kong. Also you can compare China 50 years ago and now (despite being communist on paper now it's one of the most capitalist countries in the world in reality and it's very good for them). North vs South Korea. Just too many examples. Redistribution simply does not create any wealth. Some very rich countries can get away with it but even current day Sweden on the very top on ease to do business lists. And Sweden is already very rich so they have something to redistribute (https://mises.org/library/sweden-myth)

I guess we look at 19th century extremely differently. For me it was as laissez-faire as probably possible. Current levels of redistribution and inefficiency of it would have been unimaginable back then. We should be very thankful for our ancestors who were working so so so hard. We are currently standing on the shoulders of those giants that started this exponential growth of technology that improved our lifes so much in the last couple hundred of years. Especially USA which to this day is world's economical, industrial, technological and innovation locomotive. Even logical arguments why redistribution though taxes are working for me seems like mental gymnastics and doesn't really much sense. Why would would someone should be efficient with someone else's money even if he has good intentions? Why would redistribution create larger pie to everyone? 19 century is a great example to me how human potential can be unleashed with freedom (from a lot of things at that time - religion, taxes, regulation etc).

I don't disagree with your conclusion. I would avoid left vs right labels though. There is some unavoidable reality on how the world works and labels clouds our judgment and we make emotional decision based on what is "morally" right or wrong and not adapting and working with what we actually have in reality. Every country is actually capitalistic (including USSR and North Korea). The only difference is who control that capital. It's ironic that in capitalist countries it's usually controlled by people (people of merit who often are creators and innovators) and in "communist" countries it is controlled by "government" - usually people with no merit and very often very evil ones. The ones who are good at getting at the top in the power pyramid. Where do you think computer would be invented and would reach all the regular folks?

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