In a high-stakes generosity study, researchers gave $10,000 to 200 individuals from seven countries and instructed them to spend it all within three months. The results revealed that participants spent 68% of the funds in a way that benefited others, sometimes alongside benefiting themselves. This research gives insight into potential human behavior as a massive wealth transfer from the Baby Boomer generation is imminent, suggesting much of this money could be directed towards the public good.
Key Points:
- 200 participants from countries like Brazil, Indonesia, and the UK were given $10,000 each to spend within three months.
- Participants spent 68% of their money prosocially, on acts benefiting others and occasionally themselves.
- Regardless of the country’s economic status, there was no difference in prosocial spending, but high-income countries saw more charitable donations.
- Those prompted to share their spending on social media donated more (23%) to charity than those without this stipulation (15%).
- As the Baby Boomer generation starts to pass away, up to $36 trillion in inheritances are expected in the U.S. alone, indicating a potential boost in public good spending.
Source: https://bigthink.com/the-present/generosity-study-economics/
