The Old New Money Meets the New New Money

Garry Trudeau this week did a series on an imagined confrontation between Buffett (the old new money) and hypothetical billionaire (the new new money) with Buffett trying moral suasion to convince the new new guy that a little charity wouldn't be such a bad thing. The result is hysterical because it so perfectly skewers the values of the new new money. Trudeau has come up with a fantastic term to describe one of the follies of the new new rich: "aging out"......... see following.

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Some of the commentary about the Giving Pledge has suggested that that Gates and Buffett may be strong-arming these people a bit. This comic strip doesn't suggest that but it does show Warren actively pursuing a hedgie. It works to get the point across, but there's no way this is happening in the real world. It's not Warren's style. Also, he believes that people have a right to do what they want with their money.

What is brilliant about the Giving Pledge is the way it uses the concept of social proof (see Cialdini, Influence). T A lot of people would like to be associated with Buffett and Gates. The bandwagon effect takes hold. There is no need for strong-arming. In Buffett's ideal world the bandwagon would proceed until the 50% bar becomes a *norm* at which point the ultra-rich would have to publicly justify departing from it. And it's possible he will get his wish.

The most interesting and exciting thing about the Giving Pledge is the way it proves that on the simplest level, social proof can raise billions of dollars for charity.