The Economic Rationality of Religious Giving

People, especially those from low-income backgrounds, often give a significant portion of their earnings to religious organizations, which may seem irrational to outsiders. However, this financial commitment can be understood in economic terms as a complex interaction between tangible and intangible benefits. For example, individuals gain a strong sense of community support, respect, and social networks, which can provide non-monetary forms of security, akin to insurance against adversity. This demonstrates that economic value extends beyond merely measurable financial transactions, encompassing social and emotional dimensions that contribute to a richer understanding of human behavior.