Fortunes of Wealthiest People Largely Unspent

An economics professor says that Warren Buffett is not only the most generous donor in America, but also the most rational billionaire, reports The New York Times.

Professor Austan Goolsbee notes that aside from Mr. Buffett’s gift of over $40-billion, most great wealth was largely untapped last year, despite 2006 being a record year in giving according to the annual survey of America’s biggest donors conducted by The Chronicle of Philanthropy and Slate.

The 60 richest Americans have fortunes totaling an estimated $630-billion, of which only a little over $7-billion has been pledged to charity. However, the wealthy do not spend that much considering their fortunes accumulate far more quickly than even the most lavish spending could keep pace with, Mr. Goolsbee says. He argues it makes sense for the extremely rich to pledge the vast majority of their wealth to charity.

Says Mr. Goolsbee, “In a few weeks, you will see the list of the world’s wealthiest people and how vastly their wealth has increased. Warren Buffett will probably be the only one pledging to give his fortune away. The other billionaires will probably think he’s crazy, but it may make him the most rational person on the list.”

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