I think the logic of the article is assuming the your money accrues compound interest only if you hold on to it. But if you give that money to someone else, they too can put it in the bank and accrue interest, the fact that they do something different with it (like staying alive) suggests there is something more valuable in that choice. Before putting money in the bank we often invest in ourselves, like paying for a tertiary education for instance, and that itself pays off more than that money would in the bank. The same logic stands for the person someone donates to. For instance I’m currently paying for a friend’s daughter in Africa to go through medical school, that’s costing me money now that will result in her supporting her wider family for an entire generation before I die. Their family might be self-sufficient by that time.
I don’t think there’s a meaningful distinction between this situation on an individual level or a population level. If everyone gives at death, then a huge amount of money that could have been given earlier and could have accrued out-weighed benefits for the recipients stays with the wealthy, and those potential recipients die or fail to benefit from having the money earlier.
I understand what you’re saying but if the norm was to build and enjoy wealth and give when you’re gone, there is no “earlier”. It’s a flow of money within and between populations. Now there is the question of whether there is more wealth building if more vs less people have it over a single lifetime. I’m interested in where all of these “sweet spots” are and converge.
I’m not sure that’s how time works, I don’t see that scaling makes any difference.
If wealth-building wasn’t just wealth-hoarding (which is the most lucrative way of wealth building that we have at present—see Thomas Piketty r>g) this might be a worthwhile approach—thinking about who is a better steward of the investment (I think an excess of paternalism might be playing a part in this assessment) but wealth-hoarding results in greater inequality, which is what we’re trying to avoid, surely, with charitable giving.
I agree though that there is probably a sweet-spot.
I think the logic of the article is assuming the your money accrues compound interest only if you hold on to it. But if you give that money to someone else, they too can put it in the bank and accrue interest, the fact that they do something different with it (like staying alive) suggests there is something more valuable in that choice. Before putting money in the bank we often invest in ourselves, like paying for a tertiary education for instance, and that itself pays off more than that money would in the bank. The same logic stands for the person someone donates to. For instance I’m currently paying for a friend’s daughter in Africa to go through medical school, that’s costing me money now that will result in her supporting her wider family for an entire generation before I die. Their family might be self-sufficient by that time.
I don’t think there’s a meaningful distinction between this situation on an individual level or a population level. If everyone gives at death, then a huge amount of money that could have been given earlier and could have accrued out-weighed benefits for the recipients stays with the wealthy, and those potential recipients die or fail to benefit from having the money earlier.
I understand what you’re saying but if the norm was to build and enjoy wealth and give when you’re gone, there is no “earlier”. It’s a flow of money within and between populations. Now there is the question of whether there is more wealth building if more vs less people have it over a single lifetime. I’m interested in where all of these “sweet spots” are and converge.
I’m not sure that’s how time works, I don’t see that scaling makes any difference.
If wealth-building wasn’t just wealth-hoarding (which is the most lucrative way of wealth building that we have at present—see Thomas Piketty r>g) this might be a worthwhile approach—thinking about who is a better steward of the investment (I think an excess of paternalism might be playing a part in this assessment) but wealth-hoarding results in greater inequality, which is what we’re trying to avoid, surely, with charitable giving.
I agree though that there is probably a sweet-spot.