In a public statement last summer, super rich hedge fund manager Leon Cooperman vowed to give away his entire fortune to charity. This remarkable trend called, The Giving Pledge, was created by Warren Buffett and caught the attention of not only Bill Gates but other mega wealthy individuals, who committed to give away half their wealth to philanthropic or charitable causes.
Recently this social responsibility has spread beyond the wealthiest 607 billionaires to an increasing numbers of the 18 million average millionaires. Feeling blessed by fruits of their labor these families devoted to closing the wealth gap, have committed to Warren Buffett’s idea. Perhaps to the chagrin of their children, who might have gotten rich by default—the race is on to share an estimated $30 trillion dollars that would have changed hands from Baby Boomers to GenXers and Millennials.
Pathocracy, according to Psychiatrist Andrew Lobaczewski, cultivates a right to dominate using personally beneficial solutions. Hardworking boomers are revolting against such politicians with unremarkable resumes making fortunes granting entitlements as options to poverty. Trusting that authority has given way to individuals donating their wealth on a massive scale at death.
In America where anyone can become rich, race and poor education are barriers to that dream for too many. Unlike children of millionaires who are exposed to the mechanics of capitalism, minorities are blocked by demographics to knowledge capital and connection capital. The giving pledge that provides funds to a broader swath beyond wealthy families bridges the gap to help people to help themselves.
Imagine if a mere 1% of the 30 trillion dollars earmarked to move from boomers, goes to independent charities unfettered by political gain or red tape, the direct benefit is $300 billion dollars to those who otherwise would have no economic advantage. It could send 12 million kids to universities who’d otherwise be stuck in a system that cycles abuse and poverty. A homegrown American idea that benefits everyone with unforetold jobs and business revenue.
Authors Note:
Props to Leon Cooperman who said: “When I took the Giving Pledge, I told Warren (Buffet), asking for half is not asking for enough. I intend to give it all away and I’m going to give it to those organizations, institutions and individuals that made a difference in my lifetime.”
