Buffet to Give Fortune to Gates Foundation and Four Charities

Philanthropy can be a powerful adjunct to government action. When Bill Gates announced that he was quitting his day job at Microsoft to devote his time to giving away his money, he did a lot to make up for the bug-infested software he’s sold. Now, Warren Buffet has announced that most of his $44 billion fortune is going into the Bill and Melinda Gates Foundation and four other foundations. Apparently, the estate tax does serve a purpose.

Rich people giving away their money is not new. Rome at his height was adorned and entertained by the wealthy who sought to buy prestige and the loyalty of the Head Count by spending their money on the city of Rome. Indeed, it became a contest to see who could spend the most. Regrettably much of the spending was for gladiatorial games rather than, say a system of universal education, but recycling the wealth is never a bad idea.

In America’s 19th century, the aptly named robber barons wound up giving a sizeable portion of their wealth away creating things like Carnegie-Mellon University, the New York City Public Library and hospitals nationwide. Once again, some of it was conscience money, some of it was buying status, and some was genuinely heartfelt. Very little of it was entirely useless.

Now, the two richest men in America have decided that giving their money away makes sense. Mr. Gates’ foundation gave away $1.36 billion last year, and Mr. Buffet’s announcement said that he wanted his annual contribution of stock to be given away in the year it’s donated. This would double what the Gates Foundation gives away on “on world health, poverty and increasing access to technology in developing countries. In the United States, it focuses on education and technology in public libraries,” according to the AP.

If anyone in American business can establish a social fad for giving, it is Messrs. Gates and Buffet. They are revered among the entrepreneurial class; indeed, Mr. Buffet auctioned off a lunch with himself with the proceeds going to charity recently -- $455,000 was the winning bid. As Joan Weill told her husband Sandy (of Citibank fame), “shrouds don’t have pockets.” Microsoft’s founder and the Oracle of Omaha understand that. One hopes their disciples learn quickly.

© Copyright 2006 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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