Get Happier, Help Others: Some Good Ideas About Giving
Revisionist History
Deep Dive
Why does giving money to others make us happier than spending it on ourselves?
Research shows we underestimate the personal benefit of giving. Studies, like those by Elizabeth Dunn, demonstrate that people feel happier when they spend money on others rather than on themselves, even when they predict the opposite.
Why do we often give less to charity than we should, despite the happiness it brings?
Our minds mislead us by overthinking the act of giving, focusing on potential awkwardness or incompetence rather than the recipient's positive reaction. This overthinking creates friction, making us less likely to give.
What are some of the most impactful charities according to GiveWell?
GiveWell's top charities include the Against Malaria Foundation, Malaria Consortium, Helen Keller International's Vitamin A Supplementation Program, and New Incentives, which provide malaria nets, preventive malaria medication, vitamin A supplements, and conditional cash transfers respectively.
How has GiveWell influenced the charity sector?
GiveWell has created an incentive for charities to focus on demonstrating impact due to the significant funding they direct based on evidence of effectiveness. This has led to a broader shift towards more research-driven philanthropy.
Why do professional poker players tend to be more generous?
Poker players, often referred to as 'degens,' are more risk-tolerant and freewheeling with money, which extends to their charitable giving. They are more likely to give generously, both to friends and to charitable causes.
What is the 'expected value' framework and how does it apply to charitable giving?
Expected value is the net benefit expected from uncertain outcomes. In charitable giving, it helps in assessing the utility of donations, though psychological factors also play a significant role in decision-making.
Why might people give less to highly effective charities despite their proven impact?
The suffering and poverty in parts of the world, like sub-Saharan Africa, are often overlooked in daily life, reducing the motivating force to give. Additionally, the charitable market lacks direct feedback loops, unlike consumer markets.
- Giving money away makes us happier than we expect.
- We underestimate the benefit of giving to ourselves.
- There are high-impact charities proven to do a lot of good.
- Friction and overthinking hinder charitable giving.
- Habit formation can reduce friction and make giving easier.