The News: The Wisconsin Institute for Law & Liberty (WILL) released a new report suggesting policy actions that can be taken by the federal, state, and local governments to support social capital. We also highlight the rising importance of employers in building social capital in the workplace. From Isolation to Connection is the third and final report examining the impact social capital has on Wisconsin communities. 

The Quotes: WILL Policy Associate, Miranda Spindt, stated, “The world around is falling apart at the seams, from the mental health crisis to growing inequality and distrust—and as a society we refuse to talk about why. WILL has been at the forefront of exploring and confronting these barriers and in our new report we put solutions – government and private alike – front and center. We hope moving this conversation forward can restore critical connections between friends, family, neighbors, and members of the community.” 

Encouraging Charitable Giving and Non-Profits: Philanthropy plays an important role in measuring and supporting the growth of social capital. Making charitable donations shows a strong connection and trust between an individual and the organization they fund. This form of community involvement is cyclical because when individuals fund organizations, those groups will reinvest in the community by increasing civic engagement within their mission. 

To improve social capital, legislators should observe the United States’ generous tendencies and implement policies that encourage greater philanthropic giving. For example, on a federal level, people can only acquire a charitable tax deduction if they file their taxes by itemizing their deductions. If people were offered this option under the standard deductible, there could be a significant increase in charitable giving. 

State governments also restrict charitable activities by overregulating non-profit charitable organizations. In the United States, Wisconsin ranks 14th in startup costs, 23rd in annual reporting requirements, and 25th in oversight regulations. These high costs make it extremely difficult for non-profits to start or maintain activity by hiring staff or legal support. Lowering these barriers could foster more charitable activity. 

Supporting Stronger Families and Child Development: Family stability, particularly through marriage, significantly impacts child development by providing a more stable environment, which is linked to better long-term outcomes. However, marriage rates are declining, especially among lower-income families, partly due to federal welfare programs that create financial disincentives for marriage.  

Additionally, mental health has ravaged younger generations. One key root of this decline is the new tendency for children to grow up in a phone-based childhood instead of play-based. Thus, promoting childhood independence through reasonable laws can help counteract the negative effects of overprotection and encourage healthier development through freedom and play. 

Improving Housing and Development Policies: Local governments can foster greater social capital by altering housing and development policies. Homeowners are more invested in their neighborhoods and communities compared to renters because of their long-term commitment to the area. Also, when communities are walkable and have third places—a public place where people can gather and interact outside of home and work— it is easier to form relationships and invest in the community. All of these topics can be addressed by having more flexible zoning laws and development policy.  

Employers’ Role in Civil Society: Because participation in community institutions, clubs, and organizations has dramatically declined, the workplace is the last source for some people to find a community and develop social capital. Employers should consider how important building social capital in the workplace is for both their employees and businesses. As workers are becoming digital, employers should attempt to maintain social interaction so workers gain connection to their company and co-workers. This will help both employee retention and cooperation, while improving well-being. 

Read More:  

• From Isolation to Connection, Oct XX, 2024  

• Digital Disruption: Exploring the Link between Technology, Social Media, and Political Polarization, June 2024 

• Fraying Connections: Exploring Social Capital and Its Societal Implications, May 2, 2024