This paradox is illuminated upon reading the speech Why Giving Matters, given by Arthur C. Brooks, who was president of the American Enterprise Institute during 2009. (This speech can be found here: http://speeches.byu.edu/?act=viewitem&id=1826). He explains the statistics better than I ever could:
"I worked for months with my computer in my darkened office to get my conclusion. The conclusion was, sure enough, that when people get richer, they tend to give more money away. But I also came up with the following counterintuitive finding: When people give more money away, they tend to prosper.Brooks further explains that he couldn't believe the statistics actually lived up to the paradox; he couldn't bring himself to publish the findings until he accepted why this is true. This is the paradox of service- you get more than you give.
Specifically, here’s what I found. If you have two families that are exactly identical—in other words, same religion, same race, same number of kids, same town, same level of education, and everything’s the same—except that one family gives a hundred dollars more to charity than the second family, then the giving family will earn on average $375 more in income than the nongiving family—and that’s statistically attributable to the gift."
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