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by TeMPOraL 1894 days ago
Yeah, that article is pretty weird. To add on your last point:

> > One could spend at most a few tens of millions of dollars on anti-mosquito bed nets before returns start dramatically diminishing because everyone who can be helped by them already has one.

That's a feature. It's half of what makes "effective" part of "effective" altruism effective. The fact that charities aren't infinite money sinks allows everyone to donate by a simple algorithm of:

  do {
    let charity = runQuery("
          SELECT *
          FROM charities
          ORDER BY effectiveness DESC
          LIMIT 1;")
    donateTo(charity);
  } while(charity != null && hasMoneyToHelp());
The idea being, charities that can do most good now get the funds, and as they saturate and hit diminishing returns, they stop being the most effective ones, so other charities takes their place. Repeat until there are no more charities remaining, thus no more problems to solve.

(People may have slightly different definitions of "effective", or one may prefer to do e.g. LIMIT 5 and pick one of the top 5 at random - the idea still works, the slight variance is a hedge against uncertainty.)

It's an obvious idea, and it's how people approach other aspects of their lives if they care about the outcome, so why not donating too?

The article continues:

> > This points to the limits of the individualistic consumerist approach to ending poverty. The best – most beneficial – choice you can make as an individual spending $50 or even $5,000 is different from the best choice you should make if you have several hundred billion dollars to spend.

There's only one entity with several hundred billion dollars to spare, and that's US Government. Other than that, this is why people donate to charities: charities exist to pool money, to turn ten thousand $50 donations into a single $500 000 force that can be better used than if everyone tried to apply their $50 directly at the problem.

1 comments

Effectiveness of charities has exactly the same problems as efficient market hypothesis: markets can remain irrational longer than you can remain solvent. Or in other words, charities can remain full of shit for longer than you have money for.
Yes, and the same rules apply:

- Don't invest more than you can comfortably lose.

- Don't throw away the entire concept just because it's not perfect.

- Get better at telling who's full of shit, or delegate it to someone you trust.

Don't 2 & 3 contradict each other in this case? Throwing away the yoke of institutional giving is predicated upon recognizing that overhead and start up costs eat up transferable dollars.
They're complementary.

#2: Just because there are charities or companies that do bad things, doesn't mean the concepts of charities and companies, or philanthropy and markets, are fundamentally broken. There are good and bad charities/companies, even though it may be hard to tell which is which.

#3: You can make your donations more effective if you get better at telling which charity is good (same for investments and companies). There are diminishing returns on effort here - particularly if you aren't planning to specialize in charity evaluation. In that case, you can convert this problem into an easier problem of finding trustworthy specialists in charity evaluation, and donating to places they consider good/effective.

That's why we have charity evaluators like GiveWell. https://www.givewell.org/
Now consider how long a government can remain irrational.