According to a report, the world’s richest 1 percent currently holds about $125 trillion, which is half the world’s wealth. Another report says that the world’s 100 richest people could end global poverty four times over.
All these raise one simple question- why don’t the rich people do charity and elevate people from the poverty? Common sense says that they can give the money to poor people and easily improve their lives. Yes, on many fronts this argument is legit—but only to an extent. There are plenty of logistical challenges of handing over the money to the poor population.
Also, handing over the cash to people doesn’t guarantee poverty alleviation. If this was the case, governments in the developing and under-developed countries, while tacking the challenge of inflation, would have done this long ago. In fact, there are top economists, most famously Angus Deaton and William Easterly, who argue that foreign aids sometimes hurt more than doing good.
So while this idea of giving money to every poor is quite empathetic, it isn’t well-thought. The whole thing, from micro and macro perspective, is much complex.
Many billionaires does understand this fact very well; hence they refrain themselves from transferring hard cash to the poor people. They do, however, help this less-given population with different welfare initiatives. There are also those rich people who pass on their money to poor via several NGOs and local communities.
And of course, there are billionaires who unfortunately don’t care about other people or have their different priorities.
How do rich people take advantage of credit cards?
