I'm curious about "genuine private charity is heavily suppressed". This doesn't jump out at me. From what I've seen, a large percentage of charity (large and small) seems like a scam or near-scam.
That's why I said "genuine". My thinking is that people are less inclined to give to charity because they expect the state to fund every cause. This is along the lines of what is being crowded out by deficit spending.
Before the welfare state, people gave much larger shares of their income to charities, through their churches and fraternal societies, and more services for the poor were provided through charity (or just pro bono).
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