Rebane's Ruminations
November 2014
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George Rebane

RR has reported on the many studies that show people of conservative bent vastly outspend liberals in contributions to private charities (and that, dollar for dollar, private charities are enormously more effective in helping the poor and disadvantaged than are government programs).  The intuitive reasons for that are easy to grasp, at least for many of us, and they are backed by an analysis of the data.

The 2013 report – ‘Who Really Gives? Partisanship and Charitable Giving in the United States’ – from MIT by Michele F. Margolis and Michael W. Sances attempts to recover from this embarrassment by arguing that if you control for certain factors, then we can see both the Left and Right in a more equitable light, even though the Right still gives more than the Left.  (H/T to a reader working on a related report for the link to this one.)

PhilanthropyFor those recently arrived on Earth, the proximal reason for the disparate giving is that liberals, who are mostly secular humanists, look to an all-encompassing and providing government to take care of the needy, while conservatives are taught and practice that it is an individual responsibility to fill that gap.  The interesting corollary is that most of the tax dollars for such ‘government giving’ then also comes from the conservatives as implied by Margolis and Sances.  (BTW, to see where in the country who gives how much, here is an interesting website by Chronicle of Philanthropy.)

In any event, the Margolis and Sances report turns out to be a secular humanist bamboozle of the kind in which the Left is a demonstrated and practiced expert (cf. most recently MIT’s Jonathan Gruber’s apologetics for lying about the construct and operation of Obamacare to the “stupid American voters”).  They use a lot of statistical mumbo-jumbo to paper over their revealing introductory admission that the results come about by having ‘controlled’ for disparities in income/wealth and religiosity between the two ideological cohorts.

Well yes, in the aggregate conservatives have life philosophies that to a greater degree promote individual initiatives and risk taking enterprises that garner more income and wealth, all which then allows them to give a larger dollar amount to the charities of their choice.  And yes, conservatives are more religious, therefore they do a lot of their giving through faith-based organizations like churches and synagogues.  And, of course, they do not trust wealth redistribution through government or lackey NGOs, so they don’t direct their monies to the needy through those channels – that’s what makes them conservatives in the first place.

But what the non-technical reader (let alone the nation’s innumerates) don’t catch in such reports is the statistical bamboozle of ‘factoring out’ or ‘controlling for’ to achieve support for your desired conclusion.  These processes have the panache of rigorous science that the layman seldom questions.  You should know that it is always possible to factor out the main causal variables in a dataset so that you can essentially wind up with a blob of scattered noise equally distributed between contending cohorts that then appears to give any level of desired parity – in the present case that there’s not much difference in the giving behaviors of conservatives and liberals.

The conclusion is so much bovine scat as any tally of sourced monies going to the poor and needy through (secular or religious) private charities demonstrates.  And this conclusion is even visible in the contorted presentation by Margolis and Sances.  ‘Touche Monsieur le Puuzy Kat!’  (Remember the famous musketeer Tom & Jerry cartoon?)

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73 responses to “Charitable Giving by Conservatives and Liberals”

  1. Scott Obermuller Avatar

    Folks on the right mostly do want the govt to mind it’s own business.
    Gregory has made the common error of conflating Republicans with conservatives. Not the same thing at all.

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  2. Ben Emery Avatar
    Ben Emery

    Scott,
    This what you don’t understand, a person being able to afford shelter, food, clothes, education, and health care has more to do with dignity not money. Money is the medium of exchange for those things but for earned wage earners those wages are representative of their time and labor/ intellectual capital. We steal a persons dignity when they work full time and cannot support themselves and families with the basic necessities of a decent life. As a culture and society protecting blue collar living wage manufacturing jobs with either selective import tariffs or an added value tax creating incentives of keeping manufacturing in the US. Also make top marginal tax rates at higher levels giving the incentive of reinvestment of wealth back to where it came, the labor of the workers. CEO’s will still be millionaires and shareholders will still get their returns, just not as high as by today’s policies.
    It is about incentives for the general welfare of the entire nation not just the well connected and large investors in government.

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  3. Scott Obermuller Avatar

    So it all does involve money, but Ben tries to wriggle out of his nonsense by saying it’s about dignity. Apparently dignity has a price tag, but you’ll never get Ben to come up with an amount.
    “We steal a persons dignity when they work full time and cannot support themselves and families with the basic necessities of a decent life.”
    No Ben – every human has dignity. Although some seem happy to throw it away by their actions. Miley Cyrus, et al. When a person gets more money for their time than the free market value would allow, then they are the thieves. If the demand for their skills and time does not allow them the money – oh, excuse me – the ‘dignity’ to buy all of the stuff they want, then they should either work more hours or do something that makes their time more valuable.

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  4. George Rebane Avatar

    Expanding on ScottO’s 835pm – Does the employee getting the mandated higher wage steal from the prospective employee willing to work for less, but thereby having no work because the mandated minimum wage has caused employers to reduce jobs by replacing labor with technology or moving such jobs out of reach of those willing to work for less? Is such a mandated employee equivalent to a corporation that also cannot remain viable without some form government handouts?

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  5. Ben Emery Avatar
    Ben Emery

    George and Scott,
    What the both of you fail to except as reality is we had a hands off government when it came to big business and worker rights for nearly 140 years, we did have selective import tariffs though. It didn’t work and then we had a 30 to 40 year run when our federal government recognized these injustices and put policies in place that lifted the boats of a vast majority of Americans and created the largest/ strongest middle class in world history.
    FDR 1944 State of the Union
    http://www.presidency.ucsb.edu/ws/?pid=16518
    Excerpt
    It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known. We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth- is ill-fed, ill-clothed, ill housed, and insecure.
    This Republic had its beginning, and grew to its present strength, under the protection of certain inalienable political rights—among them the right of free speech, free press, free worship, trial by jury, freedom from unreasonable searches and seizures. They were our rights to life and liberty.
    As our Nation has grown in size and stature, however—as our industrial economy expanded—these political rights proved inadequate to assure us equality in the pursuit of happiness.
    We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence. “Necessitous men are not free men.” People who are hungry and out of a job are the stuff of which dictatorships are made.
    In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all regardless of station, race, or creed.
    Among these are:
    The right to a useful and remunerative job in the industries or shops or farms or mines of the Nation;
    The right to earn enough to provide adequate food and clothing and recreation;
    The right of every farmer to raise and sell his products at a return which will give him and his family a decent living;
    The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;
    The right of every family to a decent home;
    The right to adequate medical care and the opportunity to achieve and enjoy good health;
    The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;
    The right to a good education.
    All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.

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  6. Scott Obermuller Avatar

    Ben – those ‘rights’ are fabricated nonsense. How can a govt guarantee any of these rights? There is only one way. Taking money from producers and giving it to non producers. A govt mandated right of a good ensures an ever growing class of do-nothings. A class of folks that have no goals or ambition. These are the folks with no dignity.

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  7. George Rebane Avatar

    BenE 932pm – I guess my 844pm was not worth answering, or the answers would have been too painful.
    Your quote of FDR’s last inaugural speech shows where the man went off the rails and why there is a 22nd amendment to our Constitution. His enumerated ‘rights’ have nothing to do with our constitutional rights, but are only a sly proposal to the unlearned that they accept these as the basis for future socialist public policies. The simple fact is that life on earth does not make possible the guarantee of such ‘rights’, and therefore no government can. Those that have tried have caused untold misery to their populations, but mostly they have just advertised such rights without delivering, much as has the US.
    Nevertheless, the Left has maintained FDR’s position to this day, and even doubled down adding more fictitious rights to the list. It has formed the basis for our national debate going on sixty years now. Ben, you and yours quoting this are the inheritors of that ‘executive action’ legacy.

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  8. Joe Koyote Avatar
    Joe Koyote

    I read an interesting essay the other day. The author was putting forth the idea that the industrial revolution created and was driven by CENTRAL PLANNING. You know.. that thing that socialists and commies do. The argument is that industrialization destroyed individualism and self reliance. Artisans and craftsmen who had their own businesses were eliminated and turned into factory employees of investors who basically knew nothing about how the actual products their factories produced were made. So instead of multiple small businesses geographically dispersed, we now have large centralized factories with decisions being made in a top down fashion by executives in office buildings in New York.
    In my life time the same thing has happened in retail. Small businesses have been run out of business. Former business owners are now low wage employees at chain stores run from distant corporate offices by money managers (CEOs) who switch jobs as often as professional sports team coaches.
    To put things into proper perspective, capitalism is no less guilty of central planning than governments, and to impugn one without the other simply doesn’t tell the whole story.

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  9. Joe Koyote Avatar
    Joe Koyote

    George 8:44 — do some homework.. recent analysis has shown that the cities that have implemented a higher minimum wage have NOT seen a decline in employment because of it. It is just another right wing myth designed to justify the pitiful wages paid by big box and fast food outlets.

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  10. Todd Juvinall Avatar

    I say let’s let the states pass their own “minimum wage” and move on. I think $25 an hour would be great. Then when those folks want their burger it will no longer be two bucks but five. Since only about 2% of the nations workforce is on the minimum wage it probably won’t matte anyway. Hell, since it is a flexible wage number, forget 25, let’s go for $40! Now I feel really good about myself.

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  11. George Rebane Avatar

    JoeK 952am – Wild (socialist) thinking Joe, but thanks for that insight. Equating large private enterprises to large governments most certainly establishes your innumeracy credentials, besides exposing an interesting form of comparative analysis. I wonder how endemic such thinking is on the Left; if so, then this topic would add a useful post to RR’s ‘Liberal Mind’ category. I would invite you to pen such an apology and email it to me for posting as your byline.
    On the matter of the scale of large corporations viz small distributed businesses, both have a place in open markets. To the extent that large corporations require the government gun to survive (‘crony capitalism’), I exclude them as just another overreach of Leviathan much discussed elsewhere in these pages.
    But a private enterprise that has cracked the code on the economies of scale for the goods/services that it offers its customers is a most salutary component of a capitalist society. It makes such goods/services available to a wider and less affluent customer base. People can afford to buy stuff from the Walmarts and Costcos of America at prices that small distributed companies cannot match. For example food prices would skyrocket were the government to impose the return of family farms. Few could afford automobiles were the car manufacturing industry to be returned the structure it had in the early 20th century. You may not, but most people get the salutary nature of this picture.

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  12. George Rebane Avatar

    JoeK 1000am – Some more homework indeed is required. The CBO’s latest analysis summarizes –
    “Increasing the minimum wage would have two principal effects on low-wage workers. Most of them would receive higher pay that would increase their family’s income, and some of those families would see their income rise above the federal poverty threshold. But some jobs for low-wage workers would probably be eliminated, the income of most workers who became jobless would fall substantially, and the share of low-wage workers who were employed would probably fall slightly.”
    The only good part of this argument, besides the existence of some price elasticity, is that the fraction of minimum workers is small and, hopefully by design, transitory. Your argument falls on the face of it – If raising the minimum wage does not affect the number of jobs in a given region (city?), then why is there a debate among its proponents about such niggardly increases. Why not just boost it to, say, $24.57, the current national average, so no one would have to receive below average wages any longer (you know, the Lake Woebegone Effect)?

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  13. Russ Steele Avatar

    JoeK, Here is some home work reading for you
    Antony Davies, Unintended Consequences of Raising the Minimum Wage
    Antony Davies is a Mercatus Center–affiliated senior scholar at George Mason University and associate professor of economics at Duquesne University. He also is a member of the Research Program on Forecasting at George Washington University.
    Conclusion:
    Conventional wisdom suggests some apparently compelling arguments about the benefits of a minimum wage. Such arguments, however, are based on a miscon- ception that wages are levers that set value, rather than metrics that reflect value. Clearly, earning a higher wage is better for the employed worker than earning a lower wage. The important question is whether the trade-off—an increased likeli- hood of unemployment—offsets the increased wage.
    After comparing historical changes in unemployment rates among workers of varied educational attainments to changes in the minimum wage, I estimate that the pending increase in New Jersey’s minimum wage will increase unemployment among workers without a high school education (by approximately two percentage points), increase unemployment among workers without high school diplomas in general (by approximately one percentage point), and have no effect on unemploy- ment among college-educated workers. I also find no evidence that increasing the minimum wage will improve income equality in New Jersey, and some preliminary evidence that increasing the minimum wage will result in more income inequality.
    Full Study is HERE.

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  14. Joe Koyote Avatar
    Joe Koyote

    George 10:11 — Why is this theory “wild” thinking? I think the analogy holds true on any number of fronts. Economies of scale are far more susceptible to graft and corruption because the large amounts of money involved often brings out the bad in people. This is as true for large corporations as it is for government. One need only look at all of the “settlements” the big banks are making for proof and you are well aware of government fraud. While economies of scale produce goods at possibly lower prices ( and in my lifetime definitely lower quality in most areas) given the rise in poverty and demise of middle class incomes, it seems as if today’s robber barons (i.e. mostly the grandchildren who never had to lift a finger in their lives to do anything) have forgotten Henry Ford’s motto of paying his workers good enough wages so they could buy his cars. Are not boards of directors whose decisions to outsource/downsize/acquire/divest/merge/etc./etc can effect thousands, if not ten of thousands of people’s lives, and usually without much input from their employees, central planners? How is taking away people’s individualism by forcing them out of business and putting them in the same ugly purple and red uniforms worn at every other burger shack or big box any different than Mao taking farmers and moving them to the cities and putting them to work in factories wearing the same black tunics as everyone else? The only difference is the mechanism; one is an economic hammer and the other is a political hammer. One and the same, a hammer is still a hammer.

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  15. Gregory Avatar
    Gregory

    The big winners in any minimum wage hike are the unions who represent the lowest skilled workers… like the very politically active SEIU, who often have contracts indexed to the minimum wage.
    A rising minimum wage tide lifts all boats.

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  16. Gregory Avatar
    Gregory

    “it seems as if today’s robber barons (i.e. mostly the grandchildren who never had to lift a finger in their lives to do anything) have forgotten Henry Ford’s motto of paying his workers good enough wages so they could buy his cars
    No, JoKe, that’s what Ford said to gain points from the weak minded, and it’s still working. In the end he paid high enough wages to keep his people from quitting as soon as they could find a decent job elsewhere; before the hikes, iirc he had something over 100% turnover, with the vaunted assembly line being halted just about every shift change while they figured out who was missing and could fill in the newly quit.

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  17. George Rebane Avatar

    JoeK 1249pm – I think that you’re still shy a couple of answers to my questions, so until then you’ll have to do with the above excellent responses from RussS and Gregory.

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  18. Scott Obermuller Avatar

    So Joe the K thinks Walmart is no different than Mao. I think anyone who lived in China during that wonderful era of ‘full human rights’ that Ben wants would have a somewhat different view.
    If you don’t like the uniform you would be required to wear at the local burger shoppe, work somewhere else.
    Joe’s hysterical views of the world and the mismatch of reality with his Daily Kos fueled hallucinations are just amazing.

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  19. fish Avatar
    fish

    Joe’s hysterical views of the world and the mismatch of reality with his Daily Kos fueled hallucinations are just amazing.
    Political Battered Woman Syndrome…….!

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  20. fish Avatar
    fish

    Credit where credit is due. You are correct Joe….because the large amounts of money involved often brings out the bad in people.
    http://www.zerohedge.com/news/2014-11-20/obama-nominee-antonio-tax-inversion-weiss-discloses-203-million-assets
    I’m sure that issues surrounding this questionable character will be resolved just as soon as the president reads any number of the multitudinous hard hitting pieces prepared by the dedicated members of Americas Forth Estate.

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  21. Gregory Avatar
    Gregory

    O Ben (932PM), it appears you didn’t notice that FDR didn’t get his Bill of Entitlements enacted into law. While he did a pretty good job of packing the congress and packing the SCOTUS, even FDR didn’t aspire to be an Emperor.

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  22. Bill Tozer Avatar
    Bill Tozer

    Speaking of giving, it’s most refreshing that our ungrateful snot nosed next generation is finally saying thank you. Hope burns eternal. It warms the cockles of me weary heart to see such polite behavior and overflowing of expressed gratitude.. Thanks for this food we are about to bless.
    https://celebrity.yahoo.com/news/students-tweeting-thanks-michelle-obama-pics-gross-cafeteria-224500185-us-weekly.html

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  23. Bill Tozer Avatar
    Bill Tozer

    The charitable giving continues, this time in near St Louie. Obama’s voters are stocking up on their gifts. Fell sorry for the store owners carrying tech gadgets and Nike shoes.

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