Benjamin Todd

There are examples in the chart below.

So here's a chart with self-reported annual household income from 0 up to $130,000 on the x-axis.

On the y-axis, self-reported life satisfaction from 1 to 10.

Then we have lines for different countries.

So first we have India's line, which is quite low on the income axis, but quite steeply increasing on the life satisfaction axis.

Then there's a line for Russia which begins steeply but starts to level off.

That one ends at around $30,000.

Then overlapping that one we have Italy which doesn't begin as steeply as India or Russia but it in turn flattens off even more as the income increases and it stops around $50,000.

Then we have the line for the United States which starts off flatter than the rest of them at just under $20,000 and flattens off even more by the time it gets up to the top of the graph at $130,000.

Those four overlapping lines seem to map out a curve that increases rapidly at the start and then starts to flatten out towards the end.

Poor people served by GiveDirectly in Kenya have an average individual consumption of about $800 per year.

This figure is based on how much $800 could buy in the US, meaning it already takes into account the fact that money goes further in poor countries.

The average US college graduate has an annual individual working income of about $77,000 in 2023, or $54,500 post-tax.

This means that, assuming the above relationship holds, a dollar will do about 68 times more good if you give it to someone in Kenya rather than spending it on yourself.

If someone earning that average level of income were to donate 10%, they could double the annual income of seven people living in extreme poverty each year.

Over the course of their career, they could have a major positive impact on hundreds of people.

Grace is a typical recipient of donations from GiveDirectly.

She is a 48-year-old widow who lives with four children.

I would like to use part of the money to build a new house since my house is in a very bad condition.

Secondly, I would wish to pay fees for my son to go to a technical institute.