What are some of the macroeconomic benefits to our economy from charities and non-profit organizations?
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What are some of the macroeconomic costs and/or problems to our economy from charities and non-profit organizations? How much money flows through U.S. charities and non-profits each year? Or, where can I find out and how? What are some of the macroeconomic costs and/or problems to our economy from charities and non-profit organizations?
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Answer:
This has been answered by over thousands of books, and the answers are usually relative to who is getting hurt by money policies of government and private organizations, and the fluctuations of trade & currency. For example, a lot of free-market advocates don't like to see how non-profit systems benefit from subsidies given to them through public funding. The services of the non-profit are therefore exempt ( in certain states ) on multiple levels of their development and policies through the coffers of the state and federal system. Whereas profit-making ventures must pay taxes from any of their revenue received for their services. The development of non-profits in most cases is driven by a desire for the end decision to create development for public service. This public service can be deemed to be beneficial or costly depending on who you speak to. For example, our town had a food delivery service created by a non-profit. A lot of restaurants were upset that this service can bring cheaper food because they have to pay less taxes and they received exemptions on certain goods to create their service. Now that the economy is suffering, the non-profit isn't doing as good, but what makes it worse is that the restaurants are also suffering because they have no customers able to afford it, so most of them choose the non-profit anyway. The value of the non-profit keeps most of these people afloat. Although I am diverging further away from the subject, that line between prosperity and poverty is a Pandora's box that you will discover the costs or benefit of public service non-profits. For if more people become impoverished, and these services dwindle to help people stay afloat during hard times, then if they cross the line, the road to depression, drug use, malnutrition, apathy, health, violence, and negative forces can come into play for many people's lives. The cost will then be the subsidies of health given by our government for people who don't have good health. Or the increase in police forces to quell drug use or violent indirectly to increased poverty. Or the reconstruction of neighborhoods whereby more people move away from the poorer societies. Privatization has fed off of the theory that the public sector only drains the development of the government to help, and that people need to start paying for these services outside the current system ( which some see as socialist ). On the other hand, privatization will only create a management system for those who can afford it, and will leave a great amount of people ( even the ones with a lot of money ) managing a difficult system of allocating funds for living well in a fully privatized system. In the end, the non-profit sector can be seen as beneficial because certain means of the non-profit entities ( such as ones that cure diseases, promote environmental awareness, develop buffer systems for the poor etc.) are creating more services that can help people as a whole in the long run. If anything, it depends on the nature of the non-profit to determine whether there is a cost. And the cost is based on the policy-making of cities & states and the outlook of how our future economical structure will be ( which is why I brought up a scenario of a recession ). Since someone loses out on who receives subsidies and tax breaks, and since development cannot in itself be determined by fiscal year economic analysis ( even though it is needed to justify correlations ), that question can be answered in countless ways. I feel the government may perform some type of census on this information, but since so many states have different styles of implementing non-profits and charities, I am unsure if you can find information of money running through all the non-profits in our country.
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