Seems obvious the parent comment was making a point about how much money it is and not just whether it feels nice to donate money. 400k can go a long way
If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
I don’t believe donating $400 really feels that satisfying, the impact is fairly negligible in most contexts whereas donating $400k can very visibly improve a lot of lives.
I think this illustrates just how much a billion dollars is and maybe why a very small wealth tax can be used for a lot of good in society.
> If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
1. Net worth is significantly less than that (taxes + heavy philanthropy)
2. $400K donation is orders (plural) of magnitude off our actual philanthropic giving in total. This is just one donation.
> wasn't the accrued billion dollars the remainder after being taxed at a much higher rate (around 50% federal and state, if California) as it was being accrued?
Most capital owned by billionaires is not taxed until it is sold, so in the case of Hashimoto and others they most likely have not paid tax on the majority of their wealth.
> How would the "very small wealth tax" be calculated, that you propose?
In the same way we calculate income tax, we make it up. Most numbers I see are between 1-3%. We could just start at 1% as that is the most conservative number.
He has this wealth as a function of having sold the equity in the company he co-founded, so in fact virtually all his wealth has already gone through a tax event at the federal and state levels.
50%? No, that’s for high wages. And previous taxation is irrelevant: we as a society get to choose what is taxed, and there’s no inherent reason why only a single tax should apply to someone. Sales taxes, for example (which disproportionately burden those with less wealth) are paid out of one’s already-taxed income.
> How would the "very small wealth tax" be calculated, that you propose?
It is possible to tax unrealized assets. We already do. For example, a property owner pays property tax based on the value of their property, even when they are not selling it.
It is possible for billionaires to borrow against their held assets. It is therefore also possible to calculate a tax on them.
People with that much wealth should keep their money and use it where they see fit. A "wealth tax" forces some people to sell stock since not everyone has liquid assets. The CA "wealth" tax was written in a way that they could instantly turn $1B -> $1M or $100K overnight without a vote.
So many reasons why it's not a good idea to have a wealth tax. But the biggest reason is that nearly all our tax money is going to fraud. This is why our economy would BOOM if we got rid of a lot of taxes and reduced our fed/state governments a LOT. I just want roads, military and police. There is no reason why we should allow our government to be weaponized or turned into a nanny state when SO much of they money they collect is wasted.
Corporations that provide money for causes is often looked at because it's an investment. The world can learn a lot of free market capitalism, but it keeps pretending that half the people won't just DIE in communism.
While I agree that tax money gets wasted by the government, I must note that there exist other countries, explicitly not free market capitalist, where getting ultra reach is not the aim (crazy, eh?) and in the last 40 years they have come a long way in creating prosperity for everyone.
>>If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
It's not an equivalent. It's proportionally the same but it's completely different.
>>I think this illustrates just how much a billion dollars is and maybe why a very small wealth tax can be used for a lot of good in society.
If anything it illustrates taxes should be lower for people like Hashimoto. Giving even more money to the government instead of leaving it with people like Hashimoto will result in a huge net loss.
How is it out of touch? I donated much more than Hashimoto did relative to our net worths, but I cannot deny that I would have felt much more satisfied making a 1000x impact if I was a billionaire.
I donated $6000 to a halfway house last year and that doesn’t even come close to covering a single bed for a year. If I was a billionaire I could have built an entire halfway house.
> How is it out of touch? I donated much more than Hashimoto did relative to our net worths, but I cannot deny that I would have felt much more satisfied making a 1000x impact if I was a billionaire.
You have no way of possibly knowing this. And I bet you its not true.
I'm no longer a billionaire, partially because I paid an astronomical amount in taxes (I don't play the tax avoidance games). And partially because we're donating a whole lot more than $400K per year. This is ONE donation. We don't publicize most of our giving because it attracts armchair critics like you, and its distracting from the goals.
(I make an exception for Zig and technical things because my influence for better and worse usually is net positive for the initiative)
But, more importantly, I don't think playing these "my donation is worth more than yours" games is productive. If you want to think that way thats fine, I won't defend myself or my family any further than this post.
The problem is that when government spends $1,000,000 on your halfway house, it provides instant relief. It creates beds. The next year the government does it, the number of employees has doubled and it creates 20% more beds instead of the original amount. The third year it creates no beds and we find that 10% of the beds are gone, and the number of employees is now 1000. The government didn't care how well the money was invested.
Now if you invest $6000 and no one else was doing it, they would probably have created some percentage of 1 bed out of it. And if 18 other people invest $100 each maybe that's enough to complete the bed for a year. And if those altogether 19 people hear that the money went to good use, they donate again and they tell their friends. Maybe the halfway house in 10 years starts earning $25k per year and they keep costs low and the beds start increasing, they rent more space.
The government forced funding breaks it and turns it into a fake jobs program, the community funding it actually makes the service accountable.
Hashimoto did more valuable work than you and then he is in position to do more impact wherever he pleases.
>>I donated $6000 to a halfway house last year and that doesn’t even come close to covering a single bed for a year. If I was a billionaire I could have built an entire halfway house.
We need some mechanism to select people who makes the choice. Popularity/lying contest (politics) ain't it. People making money conducting honest business is the best mechanism we have.
A few things to note. 1 billion isn't a thousand times a million. If you make a conservative 5% let's say out of your net worth, you still need to work with a million, whereas you don't with a billion. So, technically, $400 with a million is some amount of work hours, whereas $400k with a billion is just pocket change taken out of more than most people lifetime's of earnings that is just 1 year of your interest.
Also, a lot more people (more than 1000x) have $400 to give than $400k so in a sense if people with $400 to give were all being very generous, they could amount to a lot more than what billionnaires could give.
The point they were trying to make was that if you take appreciation of assets into account, if your billion is appreciating by a relatively modest 5% per year, you are passively earning 50 million/year. Whereas someone with one million passively earns 50 thousand/year. One is enough to live in luxury anywhere in the world for several lifetimes, the other is enough to live comfortably in some parts of the US (or like a king in many parts of the world) but not enough to throw 6 figures at a programming language foundation for fun.
Or to take an intermediate value, $10 million is 500k a year and most people will find it difficult to spend that much on themselves, so it’s going to grow on its own and compound. It will grow more rapidly if some is invested in the stock market.
Also, donating appreciated stock avoids taxes. This donation may have come out of a donor-advised fund.
Rich people can make substantial charitable donations rather easily and make a big difference. I suggest we encourage them.
Ah there is liquidity too, but your brother comment makes my point clearer.
About liquidity, yes most people with a million net worth actually have more than half in their house, so technically it is much harder for them to throw cash than somebody with a billion and a much smaller % of their worth in illiquid assets such as property or unlisted companies. I wish I had made this point too.
Pledge what you can. If everyone does this, it adds up. I have a $100/month slush fund I have set aside for Patreon/OS projects I like and use. It's a drop in the bucket, but something. Even $5/month can go to VPS hosting or something.
A salary of $400,000 is approximately 40 times the world median salary, which is estimated to be around $10,000 per year.
~400–800 million people (top 5–10% of global earners) could easily pay $833/month without major struggle, assuming they earn >$100,000/year.
So 90% people couldn’t even afford to pay a whole month of salary to a median earner without major struggle.
~3.6 billion people (45% of the global population) can likely afford to drop a $0.25 coin in a hat for a street artist without financial struggle. But that might not feel exactly the same as giving a whole month of median salary, let alone 40 years of it.
It's the norm in the US (and pretty much everywhere else with well-implemented developed financial infrastructure) for banks to apply extra scrutiny and roadblocks to large withdrawals. There's a patio11 article going over some of the reasons [0], but it notably generates paperwork for the bank reporting the withdrawal to the government and enables a lot of fraud to allow immediate access.
I don't feel the parent post is about bad envy. There is also good envy, when you feel happy for someone's blessings. But you also would like to have it for yourself.
In a working society, nobody should be able to throw away life changing money. Being rich is poisonous to society. Most of us suffer due to people hoarding money and humanity needs to overcome the concept of money generally.
“Life changing” money is relative. We take some family friends and their kids on a vacation every two years. Sometimes the bill is split, sometimes we cover most or all of the cost. We’re not rich, we just have extra money they don’t because of different life circumstances. But as a result we can help give them and their kids experiences they never would have had. Likewise some friends who are better off than we are were able to take us on a trip we could not have afforded on our own. Again they’re not rich, just a different set of life circumstances.
Now you might argue that “vacations” aren’t “life changing”, but I would certainly argue that if you never would have had the experience or seen the place then they absolutely can be. But even if not, I refer you back to the original thesis which is that “life changing” is relative. Because the sums of money we’re talking about would have been “pay my rent for a year”, “buy a reliable (used) car”, “reduce my student loan balance by nearly a third” sort of money. And those I think could all be reasonably said to be life changing sorts of things.
Finally I would suggest that if you are “throwing away” this sort of money on actually changing someone’s life, then you are by definition not “hoarding money” and can hardly be said to be poisoning society with your relative wealth.
Hoarding money is not economically prudent in a system designed with mild inflation. Money loses value sitting still, to grow wealth there has to be some action with a positive return. The trouble will billionaires is the oligopolizing of power and influence, not that they're sitting on gold that could otherwise be yours...
I've spent a lot of time in communities trying to grow past 'money' and decided that the usual replacement is allegiance to some other ideology that aligns everyone's incentives to a common cause or cult. I'd rather have diverse incentives with a common language of cash.
If we cant grow past money as a species we are pretty much doomed. I'd rather have allegiance or community based incentives over monetary gain, given that most people on earth can't really afford life anymore and rack up debt so rich people can get richer.
> The trouble will billionaires is the oligopolizing of power and influence, not that they're sitting on gold that could otherwise be yours...
There are just purely economic problems caused by wealth inequality too because while money numbers can just keep going up infinitely, there are only so many real assets (and services like education and healthcare) that can be bought with those money numbers, so the higher the wealth of the top relative to everyone else, the easier they price everyone else out of the economy, which we are very much seeing the effects of over the last few years as things get increasingly K-shaped and the middle class vanishes.
All of this said, the last time and place I'm going to be snarky or critical of any one person's wealth is when they are voluntarily redistributing it to improve things for the common good.
Not sure about the motivation behind the comment, but small donations help too and provide you with a good feeling. Almost anyone here can probably part with the equivalent sum of money of a mobile phone plan in their country and split it across their most valued open source projects. I've honestly come to the conclusion that if you rely on open source software you simply should.
Many of us have probably been poor at some point (e.g. as a student, young adult), but most of us spend a significant amount of time in their life having means to contribute, even if only small.
I really do not understand how people talk about "Being rich / being a billionaire will make you fundamentally unhappy". Damn if I had all the money I have so many good-willed projects I want to throw money at!
Money can't buy happiness, but it can buy less unhappiness. There's diminishing returns, of course, but I'd hazard it looks a bit like ln(n), in that the returns are quite significant in the beginning.
The terms I've learned to use is rather: Happiness, and Stressors.
If you need your car to earn money, and you don't have the money or other resources to repair it if it breaks - that's a huge uncertainty and a huge source of stress and worry. Liquid funds can remove that source of stress. More drastic examples would include rent or food.
That's why liquid funds can remove impediments and distractions from your life, but once all of those are gone, then what?
Money can very much buy happiness. Most of the things that make you unhappy can be remedied with money. How much money you need to accomplish that depends though.
Unhappiness and happiness are surprisingly orthogonal. Removing unhappiness does not make you happy, it makes you not unhappy[1]. Being not unhappy is a requirement for happiness, but it's not sufficient.
1: not unhappy is weird phrasing. Substitute not sad or not angry or not hungry or whatever for your particular state of unhappiness.
The person you are replying to agrees that money can get rid of things that cause unhappiness. The point is that removing unhappiness is only part of what creates happiness, and money can’t buy the other part.
> Most of the things that make you unhappy can be remedied with money
Nonsense. Most of the things that can be remedied with money are not the truly painful things of life either.
Will money save you from heartache? From the pain of losing a loved one? From being lonely? From having no respect from your peers? From losing your health to incurable cancer?
At that point, all money can do for one is make them even more pathetic.
I don’t agree with you. Most of the things you mention are the same level of pain and unhappiness regardless of if you have, or not have money. The one with the peers is misguided because with enough money maybe you don’t need your peers! Freedom of choice.
Money won't cure pain and suffering (although it does make trial lawyers happy) but even there it can buy better care. But pretty much everything else in life is better and more enjoyable with more money. You can live in a nicer house, in a better neighborhood, with better schools, with better goods and services, with more things to do, etc. You can travel more, in a more comfortable style. You can support other projects, artists, charity, etc.
More money absolutely does make it easier to have social life. It absolutely does make it easier to cure curable diseases as well as live the life to the fullest when you have incurable diseases. And increasing your wealth is strongly correlated with gaining respect of people who were born into similar backgrounds and socioeconomic conditions as you were.
More cynically, wealth makes it both easier to attract a romantic partner (fixes loneliness) and harder for them to later leave you (prevents heartache).
So, if you squint a little, money fixes 5 of the 5 listed problems.
Define happiness, but there's a baseline for not being miserable (I have enough to eat etc) and then there's actual satisfaction with your life.
If you doubt the thesis, consider the extreme examples of Musk and Trump. they have infinite wealth and power and are demonstrably, publicly miserable.
The consistently happiest people I've personally met are Buddhist monks of various sects, who have nearly nothing in terms of money or physical possessions.
And the remaining unhappinesses can end up in starker relief, as you continuously try to remove all unhappinesses from your life to nearly impossible and sometimes distorted degrees.
The problem isn’t that money doesn’t buy happiness, it’s that it can remove your ability to endure the necessary amounts of unhappiness in life.
It will not make you unhappy. It will just not make you happy. Big difference. The saying "money can't buy happiness" is in fact true no matter how much people want to rationalize the opposite.
The amount of money to get over that hump is small. Many people in poverty are happy. If you are at the very bottom with not enough to eat and such money can buy happiness, but you can be below the poverty line and still be about as happy as everyone.
This is a lie that people with money tell themselves to make themselves feel better about not giving away more of their money (ironically, proving themselves correct).
There's certainly a point of diminishing returns, and I'd even agree that it is a cliff. Once you have a decent place to live, and your day-to-day worries about paying the bills are covered, and unexpected emergencies do not threaten your ability to get to work, keep your job, and pay your rent, then for most people more money has a diminishing impact on happiness. But that amount of money is quite a bit more than the poverty line.
Quite a bit indeed. Forbes ran an article a few months ago claiming that a family of four with two incomes needs to be earning a combined $400K to be able to reasonably afford the paid child care needed for both parents to be working.
That hump is slightly above the average income level, so I wouldn't call it small. And it doesn't flatten at the hump -- people with more money are still generally happier, but the correlation does drop a lot.
No it's not. It might vary by country and culture but in the west that amount has consistently been found to be well over the poverty line and more often over double the median household income.
People conflate the ideas of happiness, and comfort. Money buys access to increasing levels of comfort, but comfort becomes normalized very quickly. Once you've become accustomed to a certain level of comfort, the luxury of it wears off and it becomes a new norm. You also have an expectation to, at a minimum, maintain wealth so that you don't lose access to your current level of comfort.
When people with 1X see people with 10X or 100X and go hey! Why aren't you doing more? That gives me hope. When these people succeed, they are exactly the type of people who will give back and derive happiness from it. The right person who acquires wealth can do a lot of good in the world.
> Everything feels like a side quest, but not in an inspiring way. I don’t have the same base desires driving me to make money or gain status. I have infinite freedom, yet I don’t know what to do with it
What a hyper-capitalist statement. You are living a sad life if money and status is all that is driving you.
This person is free to do what they like. Family, friends, hobbies, philanthropy, … But apparently they have been stuck in a hamster wheel, chasing money and status their whole life, without ever stopping to think what they actually want or like, what is important to them.
I mean, the answer is so obviously in front of our faces right now... :-)
Use the free time to learn some Zig! And start a life of happily giving back powerful and useful GPL software to put your own 2 cents on the mountain of society building blocks that allowed you to thrive in such a way to begin with.
Damn if I had all the money I have so many good-willed projects I want to throw money at!
I think this is quite defeatist thinking. A thousand people who donate $400 is also $400k and is well within the realm of most people here. A lot of non-profits also want the thousand people that donate $400, because $400 yearly from thousand people is much more robust long-term funding.
Recently a well-known Dutch journalist, who started an organization to critically follow big tag (and take them to court when necessary), raised 1.3 million Euro. Most of it is from people like you and me, who can chip in 10 Euro monthly. It's reliable, because most people just have a recurring donation set up.
Not to detract from mitchellh's pledge, because ideally you get both types of donations.
The kinds of people that become billionaires are not those who are happy, the hole in their sole is why they are billionaires in the first place. Yes there are exceptions, just like with everything.
You should probably have a billion dollars, you would do great things. But you probably shouldn't become a billionaire to get there. Being rich doesn't make one unhappy, but getting there does.
That relentless grind changes a person, much like the ring.
Yeah, I think people have the correlation backward. I suspect that driven people are more likely to get rich and less likely to be happy, so there seem to be a lot of angry rich dudes.
Meanwhile, people who get rich by accident often seem able to improve their own lives and those of others with their money. The recent article about the founder of Craigslist comes to mind.
People who get rich by accident (e.g. lottery winners) typically spend it all and end up back where they started. Money is hard to hold on to for people who are unsophisticated about money. Predators and grifters come out of the woodwork to take a lot of it, and the rest gets frittered away on trinkets.