A study in ineffective altruism
In 2020, American households earning more than $500K pa claimed more than half the income-tax rebates available for charitable giving. In 2026 these are likely to cost in the region of $70bn (roughly equivalent to the GDP of Alaska). There is scant evidence that the breaks encourage extra charitable giving. The money is often hoarded or mispent, and the net result is more power for the wealthiest.
Elon Musk's "charitable foundation" has amassed $14bn in tax deductible donations. The funds mainly sit idle: the largest grant, $370m in 2024, was to a charity set up by Musk whose main boast is to provide childcare to 10 youngsters in a facility near to SpaceX's Texas offices.
Every dollar that the government returns to Musk is a dollar less for its own programs and priorities, be they teachers or torpedos. And it removes decision making from a democratically elected government to an unaccountable billionaire.
Source: The Economist (27 August 2026)
Elon Musk's "charitable foundation" has amassed $14bn in tax deductible donations. The funds mainly sit idle: the largest grant, $370m in 2024, was to a charity set up by Musk whose main boast is to provide childcare to 10 youngsters in a facility near to SpaceX's Texas offices.
Every dollar that the government returns to Musk is a dollar less for its own programs and priorities, be they teachers or torpedos. And it removes decision making from a democratically elected government to an unaccountable billionaire.
Source: The Economist (27 August 2026)
41-45, F
