A lot of people in the EA movement have a large say over their salary, whether it be earning to give where you can donate down to a certain amount or working for a nonprofit where you take a lower salary. EAs are a unique group in that many of them are taking a salary they feel is ethical instead of the average amount the market would pay for someone of their skill set. So what amount is ethical?
One model I really like the idea of, and Katherine and I have decided to use for now, is taking a look at the world average GDP per capita(1,2). This comes out to about 10k USD per person or about 20k USD for a couple, although estimates vary and there are other plausible models (e.g. this number does not take into account PPP adjustments). This approximate world average has a very strong intuitive appeal to us, because it’s what somebody would get paid if there was complete equality. It fits well with utilitarianism and the veil of ignorance arguments. It also nicely goes up over time (as world poverty is going down and inflation happens) and is currently achievable for a couple with no children in many first world cities (I personally live in Vancouver but have also lived off similar/less wages in Oxford). I personally do not feel this model impairs my work productivity (I pay for many time saving luxuries such as having a dishwasher, premade vegan meals and getting my groceries delivered) nor is it is a strong self sacrifice (I live in a safe part of town at a decent level).
For people interested my monthly budget breaks down roughly like this (per person USD)
Rent $220, Utilities $37, Phone bill $19, Internet $25, Food $170, Transportation $50, Other spending $150, Saving $100, Taxes $35.
There are some things that are specific to my life that is not replicable. For example having no healthcare costs due to living in Canada, sharing a room with my wife, and having no student debt. There are some sacrifices for sure. I do not own a car (although I do have a car-coop membership); I do not eat out often (maybe once a month); I don’t do expensive activities (like rock climbing), the basement suite we are renting is old and things occasionally break down; I live with a roommate as well as my wife; and I do not travel often.
But I really feel far from deprived, especially after seeing poverty first hand in India. I never feel hunger or live without heat. I never live paycheck to paycheck and always have thousands of hours of entertainment at my fingertips. I end up living like a lot of people lived in college. I’m posting this because I think a lot of other people can do this too if they try and want to show that it’s possible.
I'll put Carl's third sentence in stronger terms.
Such very low salaries are fine and may be the most moral lifestyle for people whose direct altruistic efforts aren't that time-effective.
If applied to the key figures of the EA movement - take for example someone like Holden - who is generating the equivalent of millions of dollars (perhaps tens of millions) worth of additional EA-style donations each year via their direct work, it would be highly destructive. Every hour of Holden's time is worth ~thousands of dollars in marginal donations, so virtually any time he uses to save money isn't worth it. I would feel fine if Holden were spending a million a year to eke out every moment of his time and happiness and never give a second thought to money.
Because I'm optimistic about the value of the work Joey is doing leading an innovative anti-poverty organisation, I suspect he would do more good for the world if he took a higher salary and used it to buy more time and attention, even at expensive hourly rates. But I'm only weakly confident about that as he surely knows his personal circumstances better than me.
All of the rational analysis aside, I find the intensity of commitment to personal sacrifice in the name of a moral ideal demonstrated here highly admirable and wish more people shared it.
I'm skeptical of this reasoning.
First, Holden is an extreme example, and many EAs (even some "key figures of the EA movement") are thinking overly highly of themselves if they think their time is consistently worth "~thousands of dollars in marginal donations".
Second, the time you spend thinking about frugality may not trade directly off of productive time. I know it doesn't for me. (Though I'm ... (read more)