For decades there has been a debate about how government could and should raise money to pay for public services like schools and police protection, road maintenance and garbage disposal. Progressives like myself have long argued that there should be some kind of a wealth tax because those with higher incomes and assets often pay a lower tax rate than those with middle and modest incomes. But I have also heard it said that billionaires should spend some of their money to help their communities and that would go a long way to solving such inequality.
I have written this parable to illustrate how I feel about that idea. For the purposes of this story, please assume the neighborhood association is a strictly volunteer group, and no one is required to pay them a fee.
The Parable of the Billionaire
Suppose there was a nice middle class neighborhood with a nice middle class volunteer neighborhood association that has non-profit status, an elected board of directors and bylaws. Every year the Neighborhood Association (NA) holds a bake sale to raise money for neighborhood improvements.
So this particular year, people from all over the neighborhood make baked goods. But a new resident, Bill G, says “I’m sorry, I don’t have time to make cupcakes, but I will give you a donation.”
The sale makes $500, and Bill G donates $2,000.
Of course everyone is thrilled with Bill G’s generosity. Then the NA’s Board of Directors holds an open meeting to decide how to spend the money. They also send out surveys through email and snail mail. They actively solicit everyone’s input. Many suggestions are made, but in the end, it is clear the majority of the people in the neighborhood want to repair some broken playground equipment in the park. So the board votes to spend the money on this.
Bill G is disappointed because he wanted the money spent on public art.
This was the last time Bill G ever gave money to the NA. In the future he buys beautiful pieces of art and in consultation with city officials, he has the artwork installed around the neighborhood. The art work is beautiful and all the residents love it. They are very grateful.
Bill G routinely got big tax write-offs for his donations so he paid a considerably smaller percentage of his large income in taxes than other members of his community.
The NA continued to actively solicit opinions from residents to create a list of priorities for funds. They held bake sales and spaghetti dinners that never raised a lot of money. They lobbied local elected officials for help with community needs. But Bill G became known as a civic leader because of his philanthropy and political donations. He was the most famous resident of the neighborhood and what he wanted generally was accomplished without the aid or input of the NA.
Bill G is a good person. He is admired by many people. He has made his neighborhood a beautiful place. But he has found a way to side step the democratic process because he can. Because he’s rich.
An aside: I have no problem with Bill Gates. He and his foundation are doing a lot of good. He is certainly doing better work with his money than other billionaires we could name. I don’t blame him; I blame a system that has created a growing gap between the uber-rich and the middle and working classes. I blame a system that has elevated the opinions and world view of the rich over the rest of us.
Returning to our story: later, in a decade or two, our Bill G will have made enough money through shrewd investments, and he will decide to build a bigger house in a more secluded spot. His new property will have access to private trails and views of the ocean and mountains not open to the public, plus he has a large pool and tennis courts in his own back yard, so he needn’t worry about publicly funded and maintained parks. He will send his children to private schools, so he needn’t worry about public schools. He and his family will employ a private security company to guard his properties and serve as private body guards, so he needn’t worry about police and fire departments. He will have a concierge medical service employed for the exclusive use of his family, so he needn’t worry about the Affordable Care Act or Medicare.
There are those in our country who don’t need democracy, but the rest of us do. Please remember that this election. Please vote for candidates who understand it is our government, and that we want it to serve us. Please vote for candidates who don’t want to use our government for personal vengeance and gain.
I pray and affirm that we are a loving nation filled with intelligent people who will elect caring individuals to serve as our representatives. They will protect the rights and freedoms of all our people.
Make a plan to vote. Thank you.
I took this photo myself.