Rob Reich on Foundations and Philanthropy

Is private charity always a good thing? Do large foundations have too much power? Political Scientist Rob Reich of Stanford University talks with EconTalk host Russ Roberts about the power and effectiveness of foundations–large collections of wealth typically created and funded by a wealthy donor. Is such a plutocratic institution consistent with democracy? Reich discusses the history of foundations in the United States and the costs and benefits of foundation expenditures in the present.