Sure, your example showed that if one irrationally disregards earlier generations and focuses purely on the needs of cohort P, Option B is a clear winner. If one doesn’t, we agree that it’s actually pretty darn complicated to estimate the total welfare impact of donating now versus donating a larger nominal sum on equivalent problems (assuming they still exist) in future, which requires a lot of contestable counterfactual assumptions[1] as well as choice of discount rates, PPP and money nonlinearity assumptions and decisions about whether any value is attached to economic stimulus to non-recipients in developing countries and keeping marginal NGOs alive. (Donations to things other than poverty relief have their own idiosyncracies: hopefully the number of ITNs needed to prevent malaria deaths by ~2050 will be zero.)
The intergenerational elasticity point is an interesting one, but intergenerational income elasticities are higher in less developed countries (and the higher incomes are partially inherited by more people in later generations, assuming they continue to reproduce above replacement rate). And under normal assumptions we care about the earlier generations helped at least as much as the later ones, so you’ve already helped many more people than the direct recipients by the time the patient philanthropy fund is investigating how many more people accrued compound interest will let them help. Plus in the specific example of the roof we’re talking about wealth, and you’d have to invest very well in stocks and shares to beat the imputed 20% annual returns on a tin roof, even over time spans that extend beyond its serviceability.
Catchup growth definitely exists, the only question is whether more marginal economies will be excluded from it.[2] There are many reasons for economic stagnation in poorer regions (most obviously terrible governance), but it’s certainly not independent from whether philanthropic funds for economic growth and poverty alleviation decide that in the near term they should shift towards promoting the economic development of the stock market in their own country instead.[3] Too much patience is probably worse for developing countries than the opposite extreme of too much philanthropic cash chasing too few viable opportunities.
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You also have to make assumptions about the philanthropists of the future as well: I’m not as rosy on near future technology-enabled post scarcity societies as some people on here, but if we trend in that direction maybe your nominally larger funds are a lot less relevant in future than that now
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Never mind the Asian Tiger economies, even some conflict-ridden impoverished backwaters like Burkina Faso have seen average growth rates comparable to US stocks over extended periods of time, and even without wild technological optimism it’ll probably be fairly hard to find people living under the new $3 per day (2025 PPP) poverty threshold in 2075
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Makes wayyy more sense for funds to keep most of the funds invested in domestic stocks when they’re endowments ring fenced for specific things like selective scholarships or maintenance of a facility than funds for promoting economic growth and poverty alleviation
I think it’s also more fundamental in the sense a number of EA orgs are inherently “comms-focused” because they’re lobbying for some sort of cause to some sort of decision maker (convince politicians to endorse challenge trials or ban datacentres and lead paint,, or maybe persuade fish farmers or maternal care workers in LEDCs to adopt a different approach). Or if they’re not directly lobbying they might be trying to communicate research to a relatively small group of people like computer scientists or people who want to do inter-species utility loss comparisons.
Also, with some notable exceptions I think a lot of EA is quite insular: orgs want to convey that they’re doing important work to OpenPhil funders, a pipeline of talent coming from EA groups, “aligned” organizations to collaborate with or the sort of small donor that’s already thinking about long shot solutions to x-risks or making donations to improve the welfare of unfashionable creatures. That’s a short list to a/b test, a hard group to target with paid media, and also an audience which has exacting expectations about how things are communicated, so the digital marketing to wider audience approach may not work so well. The down side is that competing for the same attention is going to usually be net less impactful than finding interest from the wider public...