Revisionist History: Get Happier, Help Others – Some Good Ideas About Giving

Hosted by Pushkin Industries, "Revisionist History" delves into the overlooked and misunderstood aspects of the past. In the episode titled "Get Happier, Help Others: Some Good Ideas About Giving," released on December 2, 2024, host Jacob Goldstein explores the intricate relationship between charitable giving and personal happiness, backed by insightful conversations with experts in psychology, effective philanthropy, and decision-making.

1. The Paradox of Giving: Why We Underestimate Its Benefits

Guest: Lori Santos, Yale Psychologist and Host of "The Happiness Lab"

Jacob Goldstein opens the episode by expressing his skepticism towards Giving Tuesday, a day dedicated to charitable donations. However, his cynicism fades as Lori Santos presents compelling research demonstrating that giving not only benefits recipients but also significantly enhances the giver's happiness.

Key Points:

• Research Insights: Santos references studies, particularly from Elizabeth Dunn's lab at the University of British Columbia, showing that individuals derive more happiness from donating to others than from spending money on themselves. Participants in Dunn's studies reported higher satisfaction when using money to benefit others, even when they initially believed they would prefer personal expenditures.

  "People tend to feel happier when they donate the money to somebody else or do something nice for somebody else with the money, more so than they feel when they spent the equivalent amount of money on themselves." [05:55]

• Misconceptions About Happiness: Despite recognizing the potential joy in giving, people often misjudge its true impact. This cognitive bias leads to underinvestment in charitable activities that could enhance both personal well-being and societal good.

  "Our prediction is just totally wrong. When we spend on others, we're happier." [05:55]

• Overthinking and Friction: Santos explains that overanalyzing charitable actions can create barriers, reducing the frequency and spontaneity of giving. Simplifying the process can help overcome these internal obstacles.

  "Friction kinda gets in the way... reducing how much work it is for us to do the nice thing." [09:54]

2. Maximizing Impact: The Role of Effective Philanthropy

Guest: Ellie Hassenfeld, Co-founder and CEO of GiveWell

Transitioning from the psychology of giving, Goldstein interviews Ellie Hassenfeld about GiveWell's mission to identify charities that deliver the most significant impact per dollar donated. Hassenfeld emphasizes the importance of evidence-based philanthropy to ensure that donations lead to meaningful and measurable outcomes.

Key Points:

• Founding of GiveWell: Hassenfeld recounts the inception of GiveWell, driven by the difficulty in finding transparent and effective information about charitable organizations. This led to a focus on rigorous evaluation and evidence-based recommendations.

  "The idea was to create the resource that we had been looking for as donors." [19:04]

• Top Charities Identified: GiveWell directs funds primarily to four top charities:

  1. Against Malaria Foundation: Distributes malaria nets in Africa.
  2. Malaria Consortium: Provides seasonal malaria chemoprevention.
  3. Helen Keller International: Offers vitamin A supplementation to children under five.
  4. New Incentives: Implements conditional cash transfers to encourage immunization.

  "These top charities account for about two-thirds of the funds we direct... there's a lot of evidence that supports their impact." [22:26]

• Global vs. Local Impact: Hassenfeld highlights the stark difference in the effectiveness of donations abroad compared to local initiatives, citing that $5,000 can save a child's life in a low-income country—vastly more impactful than similar investments in local projects.

  "The opportunities to use money to have a big impact on the world are stronger overseas and it drove us to focus our efforts there." [23:51]

• Challenges in Philanthropy: Despite advancements, Hassenfeld points out systemic issues in global resource allocation and the psychological disconnect that prevents donors from fully leveraging their charitable potential.

  "We're largely blind to the daily catastrophe of child deaths due to infectious disease... and that motivating force to get people to see it and then act isn't happening." [36:17]

3. Decision-Making in Giving: Insights from Professional Gamblers

Guests: Nate Silver, Statistician; Maria Konnikova, Psychologist – Hosts of "Risky Business" Podcast and Professional Poker Players

Goldstein concludes the episode by engaging with Nate Silver and Maria Konnikova, who bring a unique perspective on charitable giving through their backgrounds in statistics and professional poker. They discuss how decision-making frameworks like expected value can optimize giving strategies.

Key Points:

• Expected Value in Giving: Silver defines expected value as the net benefit averaged over all uncertain outcomes, applying it to charitable decisions to maximize the positive impact of donations.

  "Expected value is the net benefit you expect to get averaged over all the uncertain outcomes." [39:59]

• Behavioral Economics: Konnikova expands on the psychological aspects, highlighting that emotional factors and regret play significant roles in how people perceive and execute their giving strategies.

  "Calculating expected value is not as straightforward as just kind of doing these dollar calculations... you have to try to quantify that a little bit." [40:31]

• Generosity Dynamics: Through their discussion of "nits" (risk-averse individuals) and "degens" (risk-tolerant individuals), the guests explore how different personality types approach generosity, with degen individuals typically exhibiting higher levels of generosity.

  "Degen. Absolutely... they like to gamble, is risk tolerant, maybe to their own detriment, is freewheeling with money and splashes around." [41:43]

• Personal Giving Tendencies: Konnikova shares her personal motivations for giving, driven by familial connections and a desire to support causes that align with her values, such as aid for Ukraine.

  "So for me, part of it... they give to causes where it actually makes a difference." [42:47]

• Overcoming Emotional Barriers: Both guests acknowledge the challenge of aligning rational decisions with emotional impulses, recognizing that immediate personal gratifications often overshadow more impactful but abstract charitable actions.

  "It's easy to make excuses... it's different than the kind of, oh, let's get a nice bottle of wine." [45:41]

4. Overcoming Barriers to Giving: Practical Strategies

Jacob Goldstein wraps up the episode by synthesizing insights from his conversations, emphasizing the importance of reducing friction in the act of giving to enhance both personal happiness and societal impact.

Key Actions Discussed:

• Simplifying the Giving Process: Utilizing platforms like givingmultiplier.org to streamline donations, allowing donors to allocate funds effectively without extensive research.

  "Write what you're going to give him. If it's a lasagna, whatever, here's how you drop it off." [09:54]

• Habit Formation: Encouraging regular practice of generosity to make giving a natural and effortless part of daily life.

  "If we just get in the habit of doing this over and over again... it'll just become second nature to you." [11:57]

• Direct Action: Goldstein demonstrates personal commitment by pledging a donation during the episode, illustrating the feasibility of immediate impact.

  "I'm gonna go right now to that website that Laurie was talking about, giving multiplier, and I'm going to give 50 bucks." [47:39]

Conclusion: Embracing Generosity for Personal and Global Well-being

"Get Happier, Help Others: Some Good Ideas About Giving" weaves together psychological research, effective philanthropic strategies, and decision-making frameworks to present a holistic view of the benefits and challenges of charitable giving. The episode underscores that while giving can significantly enhance personal happiness and global well-being, overcoming internal barriers through simplification and habitual generosity is essential for maximizing its positive effects.

Listeners are encouraged to reflect on their giving habits, consider evidence-based charities, and adopt practical strategies to make generosity a seamless and fulfilling aspect of their lives.

Notable Quotes:

• "We underestimate the benefit to ourselves of giving money to others." – Jacob Goldstein [00:00:00]

• "Our prediction is just totally wrong. When we spend on others, we're happier." – Lori Santos [05:55]

• "GiveWell has helped support... the creation of an incentive to operate in a way that is focused on demonstrating impact." – Ellie Hassenfeld [30:55]

• "Degen. Absolutely." – Nate Silver [41:43]

• "I'm gonna go right now to that website... and I'm going to give 50 bucks." – Jacob Goldstein [47:39]

Production Credits: Produced by Lucy Sullivan and Isabel Carter, edited by Sarah Nix, and engineered by Jake Gorski. Special thanks to Ryan Dilley, Farah Daygrunge, and Owen Miller.

For more in-depth discussions and future episodes, subscribe to Pushkin+ on Apple Podcasts or visit pushkin.fm/pus. Follow Pushkin Industries as they explore the nuances of history, psychology, and effective altruism.