Putting Philanthropy in Order

The writers of many textbooks of economics state as its subject matter the study of what is produced for whom, and how. Curiously enough they rarely complete the usual list of wh-questions so as to include when and why. This is symptomatic of the neglect by main-stream economics of time and people’s motivations. The neglect of time - and of demography, which until about 1911 was an integral part of every course in economics - has left economists, governments and private citizens insufficiently prepared for dealing with the consequences of the aging of industrial societies. Ought the government to provide for our needs after we have stopped working for our income? In that case we have to decide how to redistribute the earnings and wealth that have been generated by the market through taxation and transfer payments by the government. Or should the provision for old age be left up to private initiative? The latter is usually interpreted in the sense that every individual takes care of his own pension. But the sphere of private initiative does not stop here. Individuals may also decide to voluntarily transfer their wealth to others without expecting anything in exchange. This is the sphere of altruism and philanthropy, which also suffer from a lack of attention by economists.