Pronouns: she/âher or they/âthem.
I got interested in effective altruism back before it was called effective altruism, back before Giving What We Can had a website. Later on, I got involved in my university EA group and helped run it for a few years. Now Iâm trying to figure out where effective altruism can fit into my life these days and what it means to me.
Thanks, thatâs very helpful.
Iâm curious why you say that about the accuracy/âperformance of the conclusions of the EA community with regard to covid. Are you saying itâs just overly complicated and messy to evaluate these conclusions now, even to your own satisfaction? Or you do personally have a sense of how good/âbad overall the conclusions were, you just donât think you could convince people in EA of your sense of things?
The comparison that comes to mind for me is how amateur investors (including those who donât know the first thing about investing, how companies are valued, GAAP accounting, and so on) always seem to think theyâre doing a great job. Part of this is they typically donât even benchmark their performance against market indexes like the S&P 500. Or, if they do, they do it in a really biased, non-rigorous way, e.g. oh, my portfolio of 3 stocks went up a lot recently, let me compare it to the S&P 500 year-to-date now. So, theyâre not even measuring their performance properly in the first place, yet they seem to believe this is a great idea and theyâre doing a great job anyway.
Studies of even professional investors find itâs rare for an investor to beat the market over a 5-year period, and even rarer for an investor who beats the market in a 5-year period to beat the market again in the next 5-year period. There actually seems to be surprisingly weak correlation between beating the market in one period to the next. Using your coin flip analogy, if every stock trade is a bet on a roughly 50â50 proposition, i.e., âthis stock will beat the marketâ or âthis stock wonât beat the marketâ, then you need a large sample size of trades to rule out the influence of chance. Itâs so easy for amateurs to cherry-pick trades, prematurely declare victory (e.g. say they beat the market the moment a stock goes up a lot, rather than waiting until the end of the quarter or the end of the year), become overconfident on too small a number of trades (e.g. just bought Apple stock), or not even benchmark their performance against the market at all.
Seeing these irrationalities so often and so viscerally, and even seeing how hard it is to talk people out of them even when you can show them the research and expert opinion, or explain these concepts, Iâm extremely skeptical of people who just an intuitive, gut feeling that theyâve outperformed experts on making calls or predictions with a statistically significant sample size of calls, in the absence of any kind of objective accounting of their performance. It just seems too tempting, feels too good, to feel like one is winning, to take a moment of sober second thought and double-check that feeling against an objective measure (in the case of stocks, checking a market index), wonder if you can rule out luck (e.g. just buying Apple and thatâs it), and wonder if you can rule out bias in your assessment of performance (e.g., checking the S&P 500 when your favourite stock has just gone up a lot).
If the process was as bad as you say, as in, people who have done a few weeks of reading on the relevant science and medicine making elementary mistakes, then Iâm very skeptical of the amount of psychological bias involved in people recalling and subjectively assessing their own track record, or any sense of confidence they have about that. It seems like if we donât need people who understand science and medicine to do science and medicine properly, then a lot of our education system and scientific and medical institutions are a waste. Given that itâs just so commonsense that understanding a subject better should lead you to make better calls on that subject â overall, over the long term, statistically â we should not violate common sense on the basis of a few amateurs guessing a few coin flips better than experts, and we should especially not violate common sense when we canât even confirm whether that actually happened.