The dilemma faced by people engaging in charity. On the one hand, charity can help people who are in genuine need of economic assistance by offering them timely help. At the same time, it can also have the unintended effect of encouraging recipients to become dependent on charity in the long run. So a philanthropist must find ways to help those in need of serious help, while simultaneously taking steps to discourage sloth and dependence on charity. The same dilemma is faced by governments providing welfare for citizens. The term was coined by American economist James M. Buchanan in 1975.
