So good man nice to hear. Love the “shooting from the hip” always a big fan of that ;).
Also I agree instinctively with this and am keen to hear more “And I think there are strong systemic benefits from that dollar coming from an economically sustainable business rather than from donations.”, but not at all sure of the extent of it or why this might be. OneDay Health centers all run basically as close-to-self-sustaining small businesses, and apart from the sustainability and scalability potential of an economically, I feel there might be other systemic benefits too, but find it hard to put my finger on it
What do you think those systemic benefits might be?
I too am finding it hard to articulate. Maybe it’s just captured in the impact I talked about in the original post about creating jobs, helping the startup ecosystem, giving me money I can then donate, etc. So I shouldn’t pretend that in addition to all that there is some other nebulous “benefit of a company vs nonprofit” just to increase the warm fuzzies I feel.
But there’s also a mathematical sense in which a shilling saved (the way Kapu has impact) is better than a shilling earned.
Imagine someone makes and eans exactly 500 shillings per day. You can either cut their cost of living to 250, or give them 250.
It’s better to cut their costs to 250. That way now they earn 200% of their cost or living! If instead you give them 250, they only have 150% of their cost or living
The other benefit compared to giving cash is you avoid the sense of unfairness from people who don’t get given money. I think the new documentary in Givedirectly—Free Money—illustrates this downside well (though I don’t share the overall tone of the documentary which I feel is unnecessarily down on GiveDirectly).
I also have an intuition that it just feels better psychologically for a person to save a shilling vs to be given a shilling for free at random. Maybe mistaken.
So good man nice to hear. Love the “shooting from the hip” always a big fan of that ;).
Also I agree instinctively with this and am keen to hear more “And I think there are strong systemic benefits from that dollar coming from an economically sustainable business rather than from donations.”, but not at all sure of the extent of it or why this might be. OneDay Health centers all run basically as close-to-self-sustaining small businesses, and apart from the sustainability and scalability potential of an economically, I feel there might be other systemic benefits too, but find it hard to put my finger on it
What do you think those systemic benefits might be?
I too am finding it hard to articulate. Maybe it’s just captured in the impact I talked about in the original post about creating jobs, helping the startup ecosystem, giving me money I can then donate, etc. So I shouldn’t pretend that in addition to all that there is some other nebulous “benefit of a company vs nonprofit” just to increase the warm fuzzies I feel.
But there’s also a mathematical sense in which a shilling saved (the way Kapu has impact) is better than a shilling earned.
Imagine someone makes and eans exactly 500 shillings per day. You can either cut their cost of living to 250, or give them 250.
It’s better to cut their costs to 250. That way now they earn 200% of their cost or living! If instead you give them 250, they only have 150% of their cost or living
The other benefit compared to giving cash is you avoid the sense of unfairness from people who don’t get given money. I think the new documentary in Givedirectly—Free Money—illustrates this downside well (though I don’t share the overall tone of the documentary which I feel is unnecessarily down on GiveDirectly).
I also have an intuition that it just feels better psychologically for a person to save a shilling vs to be given a shilling for free at random. Maybe mistaken.