How Giving Impacts the Economy
By: Amanda Hughes
“Kindness is the language that the deaf can hear and the blind can see”- Mark Twain
I want you to think for a minute-- what was the last random act of kindness you’ve done? Did you hold the door for someone? Cheer someone up who was feeling down? Or have you even gone so far as giving money to a poor soul that was on the streets? Many may underestimate the impact that these small gestures carry. They may never think twice about how meaningful a simple smile is to some stranger.
Now, in an economical standpoint, kindness may seem overrated, but it is just the opposite. Suppose that someone is volunteering at a soup kitchen handing out dinner to the homeless/poor. In a sense, that person’s decision to be there implies and opportunity cost. This person chose to give up precious time that they could have used to be with family or friends. However, instead of staying in at home with family watching some ABC Family Christmas special, the person willingly made the choice to volunteer at some soup kitchen to help those that are less fortunate.
Now, you may be thinking “kindness isn’t really all that powerful in the idea of economics,. Economics is about how money works, not about being nice to strangers. Get off your high horse”, and while it may be true that economics is the fundamentals about how money works, I will argue that kindness plays a role in it.
Non-profit charities generate roughly 1.1 trillion dollars every year. This alone makes up more than 5 percent of the country’s GDP. Research also reports that for one in every ten workers in the U.S are employed in a non-profit sector. This equates to 13.7 million jobs nationwide, paying a total of 587.7 billion dollars in wages and benefits. As a part of the non-profit organizations, much of the revenue comes from generous donors. Depending on what the charity stands for, the impact it makes to the nation will vary. These efforts include:technology and scientific breakthroughs to improve our health, like insulin, the polio vaccine, the MRI, electron microscope and pacemaker, educational opportunities and access to health services, housing and shelter for the most vulnerable, the arts and cultural activities, protection of the environment, civil and voting right, and preservation of historic treasures.
So yes, kindness and charities are social and financial influences when it comes to the economics. It may seem like these kinds of things hold no value in the world of money, but they are definitely more important than most people care to think twice about.
Works Cited
"Charitable Giving in America." CHARITABLE GIVING COALITION RSS. N.p., n.d. Web. 02 Dec. 2016
"Feeling Good about Giving: The Benefits (and Costs) of ..." N.p., n.d. Web. 05 Dec. 2016
."Why Kindness Is the Key to a New Economy." OpenDemocracy. N.p., n.d. Web. 04 Dec. 2016.
It’s actually really wonderful to see how positivity affects the economy, well, positively. The information presented here was wonderfully constructed and shows how giving really does help out the economy, and in well needed areas too. In truth, I didn’t really see how charity could affect the economy, but the numbers do stack up, and it’s actually impressive. It motivates me to see more of my efforts go towards beneficial causes.
ReplyDeleteThis is a very interesting article that pleasantly surprised me. I never really thought about how something as simple and selfless like volunteering and giving could impact the economy. Since the money generated from non-profit organizations, which is approximately 1.1 million dollars, makes up more than 5% of the nation’s GDP as mentioned in the post, there is no denying that kindness and giving affects the economy. People who do give are choosing to spend their time and money on whatever charitable cause, or person, they are helping. People who do have the means to help others, often times give them things that they are not able to purchase because they do not have the money, such as food, clothes, or healthcare. Granted, kindness and giving does not play a substantial role in the economy because it cannot majorly influence it, but it still definitely affects it and contributes to the overall economy in the U.S.
ReplyDeleteI never really thought too much about kindness and the economy coinciding with one another. It was also amazing to find out that charities make up more than 5% of the US GDP. It really makes you just think that what other small things that you do with your money actually help the US in some way, it might even help the world depending on the subject/issue at hand. It was also great to show that it isn’t just volunteer work that takes hours from your day to impact the US economy, it could just be the few cents of change you drop into the fast food restaurant charity holder at the drive through or giving to the Salvation army because you feel bad for the people that have to stand in the frigid cold so you give them the dollar for the bucket and maybe even a hot coffee from inside the store. Truly it is fun to now think how little payments help us all.
ReplyDeleteWhen people donate to charities, it harms the economy's of different countries. for example, if you give free shoes to Africa, the village cobbler will die because they need their people to have a demand for shoes. this is in a way, similar to hyper inflation. If you give everyone a resource, the resource has no trade value and the supplier of that good will go out of business. It is not good to let people starve or die of illness, but in certain cases, it is better to let the economy of a third world country be and grow.
ReplyDeleteI never thought of kindness being related to economics, because they often seem like separate things. The money that you spend of the time you take out of your day just seems like something that a person does, not something that they think about as transfer of money/goods. If more people use their finances as a push to help those in need, more nations around the world have a chance to slowly move out of poverty and have a successful life because they will have more and they will be able to develop their own skills and money for the future. Usually we think of charities as big money donors, but they are really the ones trying to push the country out of low income/low happiness/satisfaction levels, so it is no wonder that they make up 5% of the nation’s GDP.
ReplyDeleteWhen I think of non-profits, I often think about people asking for money for different research developments and money going to global relief. However, I never think much about how volunteering can make so much more of a difference than just helping a person out. I really appreciated how you pointed out the financial side of non-profits, that they provide jobs for over a million people in the United States alone and how much of our national GDP is tied to these non-profits. I would be interested to know how globally we stand out, or even the amount of “kindness” in these non-profits that people contribute to! Although, we are getting to a time in the year that is heavily tied to presents, Santa Claus and holiday cheer, it is important to remember that there is ways to give that do more than fluff the college application, but actually change the world.
ReplyDeleteIn economics it is common that decisions are made based on selfish reasons such as what will generate the most profit. I have never thought of kindness as something that plays such a large role, but I have to say that I agree with you. Since non profits have the words "non profit" in the name it is often missed how much money they actually generate. A lot of people choose to volunteer at these organizations however there is also numerous job opportunities, 13.7 million jobs nationwide to be exact. Based on this factor alone I see a lot of potential for lowering the unemployment rate. If more non profits open,such as a soup kitchen like your prior example, not only will the homeless receive food and somewhere to be warm for awhile, they could even possibly get a job. If more people choose to work here, then the unemployment rate could substantially drop. Therefore, from an economic standpoint I do agree that kindness could have an impact.
ReplyDeleteYou would have never really thought about kindness as a way in economics but you really proved the point showing that it really does impact us in a good way. With the non-profit organizations and they are still paying people is still an act of kindness by providing for these people without making profit out of it, all due to donations as you explained. Or even just another helping hand boosts the economy too by producing more to the consumers. Now that you brought the topic to light you can really see how it impacts the economy in so many different ways.
ReplyDeleteI really enjoy the approach you took on your piece. And how you applied the economy to something that comes from goodness of the heart. It supersized me so see how much charities actually make up in terms of our GDP. 1.1 million is made annually this shows the reader that even donating an hour of your time to volunteer can pay off in the ling run. Many times people feels like there small contribution doesn't help, but when in reality it very much does. Overall I learned a lot about how charity effects the Economy, and how we can make a big difference if we work together.
ReplyDeleteI thought your post was very interesting to read and it kind of got me into thinking how much people have chances to make difference in other's lives. But so few makes use of it. Not many people decide to go out and help people, but there are some who help others without anticipating for an outcome. Although some people may be altruistic when giving, economics tells us that the dominant motivation is the internal satisfaction that individuals derive from the act of giving itself. Individuals derive utility from giving much in the same way they obtain satisfaction from buying a new car or eating at a restaurant; especially when the number of donors is large, the social context of other people's giving is overshadowed by the satisfaction of one's own giving when considering how much to give.
ReplyDeleteI never thought about how kindness plays a role in economics. I think that's really interesting and eye popping. You proved a very good point, and demonstrated it greatly. It just shows that when someone gives, such a small act can go a far way; while it could benefit different issues that can impact the economy greatly.
ReplyDeleteAn interesting article I have read so far. Most people that I have met probably wouldn't even think about supporting others, instead of wasting their money on things they want not the things they need they could help the poor or just help people who need their help. But overall I think it is true that the economy is changing not just because of politics and stuff but with Kindness and supporting others.
ReplyDeleteDuring the holiday season, it is common to hear talk of its economic impact and an increase in supply and demand. It was surprising to hear the considerable amount that the money earned through charities which contribute to GDP. This along with the equivalent amount annually and the diversity in nature of services donated to those in need can aid in measuring the moral side, along with the numbers, of the health of a country. While the demand for difficult changes may be necessary economically, sometimes it is hard to understand on a personal level, especially for those struggling with poverty. It is through the kindness and necessity of charity, therefore that even in spite of decisions made for the health of the nation as a whole, all can be made prosperous. While the increase in supply and demand of goods near Christmas is evident, it would be interesting to see the direct economic impact of the people’s kindness specifically during the Christmas season. An intriguing topic, thanks for writing !
ReplyDeleteI never knew how much of an impact giving kindness impacted our economy. I always thought volunteering was only an act of kindness to help others, not so much making a change to social and financial influences, who knew. This definitely changed my perspective on volunteering and it makes me want to volunteer more. Now knowing that volunteering makes up 5% of the country's GDP, If we can get more people to volunteer, imagine how much we could increase that percentage. Overall, very interesting topic, It taught me something new and It makes me wanna go out and spread kindness all over Wisconsin.
ReplyDeleteIt is definitely interesting to read about how non-profit organizations, and "kindness" in general, make up a significant portion of our country's GDP. However, I believe that it is somewhat wrong to correlate a non-profit institution for a blatant example of kindness. For example, many colleges are non-profit organizations, yet they charge exorbitant tuition costs that I am sure most would see as the antithesis of "kind". Also look at the controversial Clinton Foundation, which is made up of over 10 non-profit organizations. The foundation itself is under FBI investigation and some say it will find itself indited. However, this is not at all to say that giving is bad, quite the opposite. I think people should find a reputable charity and give to it, just not conflate every charity with "kindness".
ReplyDeleteI can honestly say that I haven’t thought about kindness in an economical standpoint. I also didn’t know what the impact of kindness was economically. I’m surprised that around 1.1 trillion dollars is given each year and that it makes up around 5% of the GDP. I didn’t even know what to expect when it came to the amount that is donated each year. I never thought kindness and economics would be related in this way since they are completely two separate topics.
ReplyDeleteAs it is the holiday season, it was nice to read a blog post on kindness and giving. The statistics to me were shocking, learning that nonprofit charities generate about 1.1 trillion dollars every year, which I also learned makes up more than 5 percent of the country’s GDP. I find this to be a questionable, because I wonder if non-profit charities go towards the country’s GDP - it would be something interesting for me to look into. It seems that that would have to include all non-profit organizations. While this may be true, the statistic is so shocking to me, that is is something that I would look further into. Furthermore, I found this blogpost something I had to think further about and it was good that this article made the reader think.
ReplyDeleteI also never have considered kindness from an economical standpoint. I'm a little confused on one thing; do charity funds count towards the GDP? I thought that the GDP was made up of the market values of items produced within country lines, and I don't really think funds count as manufactured items. It is also interesting to consider how the effect of kindness is probably multiplied during the holiday season! During the holiday season, kindness basically becomes a trend, so as a result this is most likely the time of year when charity organizations raise the most funds.
ReplyDeleteCharitable donations and other acts of kindness are not necessarily something must people will budget for, so it is interesting to see just how much these non-profit organizations accumulate in profit. I thought it was a cool idea to interconnect economics to these non-profit organizations and kindness in this way. I would be interested to see further statistics on how much an average American donates annually or studies relating the percent GDP accumulated by non-profits and the economic well-being of nations all across the world.
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