Because it’s been a great month for the future of the human race. First we saw Bill Gates deciding he was going to dedicate his collosal energy and brainpower more to his philanthropic pursuits than his technomonopolistic pursuits, and now we see one incredible side effect of this decision - his old friend Warren Buffett, the 2nd richest person on the planet, decides to give the Gates foundation the bulk of his own immense fortune, because he thinks it will be well managed there. So to some extent what we see here is the worlds most successful market competitors deciding that cooperating to help the least competitive (ie, the third world) is the best thing they can do with their fortunes, rather than competing against eachother for the top spot on the rich list, as any decent Robber Baron of old would do.
Pretty good example of how things are changing if you ask me. People are beginning to realise that we’re all in this together. I think now that we’re no longer “connected” in a mediated way via our TV sets and newspapers, but hyperconnected in a more direct fashion by way of the net, the 6 degrees of seperation are reducing to 5. Eventually everyone will be no more than 3-4 “hops” away from someone suffering under 3rd world conditions, and that has got to make a difference I think.
The effects of Buffet’s bequest are possibly much more profound than you might think:
- The obvious one: The foundation has lots more wealth at it’s disposal to do great things with.
- Bill and Melinda are no longer just spending their own fortune, so they will work all the harder to ensure that the money is spent well.
- Buffett himself will be better placed and better to leverage his own brainpower and contacts for the causes the foundation chooses to support.
- Becuase nobody as smart as Buffett would give away that much wealth to a foundation without believing it would be well spent, it’s going to be a lot harder for naysayers to pretend that BG is only doing this because Microsoft isn’t as much fun as it used to be now that it’s stock price has been flat for a few years, or some other equally uncharitable explanation.
- The foundation gains considerable respect and publicity as an organisation, it will be taken more seriously.
- As I mentioned in my first paragraph, it sets a good example. It’s a refutation of the “Greed is good” mentality - he who dies with the most toys does not win, its the people who made the best use of their toys to help others during their own lifetime who win. As Soros has said, if you leave your fortune to a foundation with instructions to spend it wisely, they will not be inclined to take risks with it, and sometimes risks must be taken.
It very much bears mentioning that WB has also donated smaller (But still significant) fortunes to other foundations run by people he trusts (eg, his children), with instructions to use the money wisely on smaller philanthropic projects. I’m a strong believer that a little wealth with some smart people in charge of it can go a lot further than a lot of wealth with a huge committee in charge of it, or of course, an enormous amount of wealth with a corrupt government in charge of it.
BTW: One of my many unfinished drafts is about Bill Gates and his big announcement, I’ll get back to that one soon.
1 comment so far ↓
rather than competing against eachother for the top spot on the rich list, as any decent Robber Baron of old would do
There were some notable philanthropists among the old-timey Robber Barons too. But I think you’re right overall.
Polio better watch its back. Malaria, you’re next.
Leave a Comment