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I can think of a few reasons. I think there are values of wealth redistribution low enough to prevent more charity than they accomplish. If the government donates $1 billion to charity/welfare, that won't accomplish all that much, but it will potentially make a lot of people feel that their obligation to be charitable has been fulfilled, preventing much more money than that from being donated.
More relevant--I think culture trumps all in the long run. If we have the option to implement policy X, which will prevent people from donating on average $1 to charity, but will also create $2 per person of value out of thin air, in the long run I wouldn't be surprised to hear that policy X does more harm than good. People donating to charity (and otherwise helping their fellow man) is a virtuous cycle that leads to more charity, less crime, and closer communities. No idea whether this is actually correct but it seems to be at least a relevant factor.
Charity is not about "helping your fellow man", if this was the case someone would notice it is ineffective for this purpose at best, counterproductive at worst, it would not take thousands of years to invent idea of effective altruism. It was always about impressing your fellow rich and showing how compassionate you are.
"Wealth redistribution" is not about helping your fellow man either, it is about avoiding situation where desperate starving masses have nothing to lose than their chains, it is investment in keeping your head affixed to your shoulder. Feudals like Bismarck, who always held longer term view than capitalists could understand it.
It is no accident that after some events that happened in 1917 labor regulations and social policies grew all around the world, that things like eight hour working day that were long said to be impossible suddely became possible. All the charity in the world somehow failed to provide it before.
https://twitter.com/RasmussenMagnus/status/1601925288736313344
https://www.cambridge.org/core/elements/abs/reforming-to-survive/8513341F3D95D3392917AFC4CC211A31
Effective altruism has always been around. Charities for thousands of years have been concerned with their own efficacy and how to improve it. Effective altruism just takes that a step further. I can't find it, but there's a great essay about how effective altruism is mostly "more things should be quantifiable." Previously things like life and death were so sacred that we as people hesitated to even definitively state that saving two lives is better than saving one.
I mean, worldwide productivity increased drastically right around that time. That made the social change possible. We got machines to do our work for us. Also, I'm not convinced that people before then were actually working more than eight hour days. There was a period during the industrial revolution where everybody was working their butts off, but before then it seems that most people had a somewhat more sedate lifestyle.
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