Some people believe charities should only help the poor in their own country. However, others argue that those organizations should help anyone wherever they live. I think it would be better if charities gave aid to people only within the country, because spending money on any good or service outside the economy causes leakage.
On the one hand, there are several reasons why offering help should not be determined by a person’s nationality. One of them is that everybody is equal and has the right to expect good. To clarify, charities’ primary aim is to help as many people in need as possible. Therefore, they do not consider nationality, location, or borders as a threat on the way to make good deeds. Additionally, everybody should expect and get any help despite their location. Also, during wars or political conflicts, the population suffers the most, while governments may not be able to provide the basic needs; often either international organizations or charities from abroad lend a hand.
On the other hand, there are many undeniable reasons why it is better not to spend money outside the economy. Most importantly, it leads to money outflow and slows down a country’s economic growth. In other words, when a huge amount of money, as charity help, goes out of the economy, it leads to a circular flow deficit. That can lead to less national income, slower economic growth, higher unemployment, and even a potential recession. Therefore, the government has to cover the whole deficit to stay healthy and stabilized in that year.
In conclusion, because everybody is equal, charities may want to help as many people as possible all around the globe. Nevertheless, there are other obvious reasons why that much money should not leave the country, primarily because of a potential circular flow deficit, which may cause the home country’s economy to recess.