How the rich got stingy

The ultra-wealthy used to build libraries and public parks. Those days are over.

Historically, being ultra-wealthy meant that there was an obligation to share a chunk of it with the world. Gilded Age industrialists like John D. Rockefeller and Andrew Carnegie made lasting cultural and philanthropic contributions, many of which still bear their names. But increasingly, our modern billionaires don’t seem inclined to follow suit.

To show just how little they’ve given, let’s look at the Giving Pledge. Over 15 years ago, some of America’s ultra-rich promised to give at least half of their wealth to charity throughout their lives or when they died. Even Elon Musk, briefly the first-ever trillionaire in history, signed it. That pledge is now on life support.

Bella DeVaan is the director of the Charity Reform Initiative at the Institute for Policy Studies, where she co-authored a study looking at how the pledge is impossible to fulfill. To explain the study’s findings, DeVaan spoke with Today, Explained co-host Sean Rameswaram about why the pledge isn’t the road to a more equitable future and how philanthropy should be done instead.

Below is an excerpt of the conversation, edited for length and clarity. There’s more in the full podcast, so listen to Today, Explained wherever you get podcasts, including Apple Podcasts, Pandora, and Spotify.

Can you remind us what the Giving Pledge was and who signed it?

The Giving Pledge was a voluntary philanthropic commitment founded by Bill Gates, his then-wife Melinda French Gates, and Berkshire Hathaway chair Warren Buffett in 2010. Since then, north of 250 people in the world have signed onto this pledge. And it’s people with tons of money who feel like signing onto something like this is something that they could do, or at least want to be seen as pledging to do.

The Giving Pledge is now 16 years old. My team did a study at 15 — old enough for a driver’s permit. And we feel like there’s a significant body of evidence that the pledge is unfulfilled and unfulfillable. Of the 32 original signers who are still billionaires, they had collectively gotten 283 percent wealthier — or 166 percent adjusting for inflation — since they signed onto the pledge, and only one couple in the group fulfilled their pledge.

So the idea is to get poorer over time, and meanwhile, almost everyone, or if not everyone, has gotten significantly richer.

That’s exactly right. Mackenzie Scott, who is one of the most........

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