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First of all, what you said about "spiritualism" (mostly in the first paragraph...) can also be attributed to materialism as well. For example, if one is an "objectivist", as I am, and as well as Milton Friedman (from the OP...) is, then one considers the self-satisfaction, the "spiritual" feeling that gets from the unselfish act of giving as an extension of the ego and self-esteem in pursuing ones own happiness, and sharing with others willfully. There is nothing wrong with be materialistic, and then willingly sharing, in a material way - i.e. money, clothing, food, shelter, etc. - with someone else. Why? Because, selfishly, it makes on feel good.
On the other hand, one can argue that "altruism" is to blame for more suffering in the world. It is the mistaken belief that if one person succeeds, then another must fail, or suffer at his/her expense. To remedy this false notion, the "altruist" philosophy is then that everyone must share in "giving" to those less fortunate in success. As Marx, an "altruist", has said, "From each according to his ability, and to each according to his need."
The naive constantly mistake "altruist" philosophies - Marxism, Socialism, Fascism, Nazism, Communism, etc... - as somehow more spiritual than "selfish capitalism" and because it creates an artificial equality. In reality, what it does is rob people of freedom. Freedom to pursue to their own materialistic happiness. The freedom to choose whether or not to share in that happiness with others. And also the freedom to chose to whom, and how much to share that happiness (materialism..) with, and get that self-affirming, self-satisfying ego boost you talked about as an added bonus.
Altruism is the complete opposite of the rational philosophies of materialism and spiritualism. To force others into doing charity (Obama's "altruist" re-distributional policies come to mind...) does two things - one, it robs people of their material (property - i.e. income, wealth, real estate, businesses, ect..) via over-taxation, and two, it blackens the spirit when the choice of who to give to, how much to give, and when to give is taken away.
So that "spiritualism" you mentioned, is only "spiritual" and noble when one is un-coerced into doing so, and that is a cornerstone of a materialistic, and capitalistic philosophy.
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