Altruism:Beyond Ethics

Outline

• Problems with Self-Interest

• Economic Altruism

• Altruism and Charity

• Altruism, Charity, and Ethics

Problems withSelf-interest

Problems with Self-interest

Nash Equilibrium:An equilibrium point in a combined activity where no person can improve his outcome by being the only person to change his position.

Problems with Self-interest

A B

A 3, 3 0, 5

B 5, 0 1, 1

The Prisoner’s Dilemma

Problems withSelf-interest

Declining Marginal Utility

There is no doubt that a gain of one thousand ducats is more significant to the pauper than to a rich man though both gain the same amount.

-Daniel Bernoulli

Self-Interest ≠ Selfishness

Economic Altruism

Altruism

• An Evolutionary Concept. (One sacrifices for another to promote the species.)

• Problematic for economists because human beings don’t always value promotion of the species.

• Self-interest, a fundamental assumption of economics, must be manipulated to account for altruism.

Altruism

“How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortunes of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it.”

“But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them.”

- Adam Smith

Altruism

Pure AltruismGiving without any personal benefit.

Impure Altruism

Giving with a “warm glow” benefit.

Enlightened Self-interest

Giving with the expectation for future gain.

Whole Interest

SelfFamilyHumanity

“Love is one of the chief characteristics of Deity, and ought to be manifested by those who aspire to be the sons of God. A man filled with the love of God, is not content with blessing his family alone, but ranges through the whole world, anxious to bless the whole human race.”

- Joseph Smith

Benefits of Altruism Over

Self-interest

Overcoming Nash Equilibria

Altruistic behavior can overcome the worst-outcome Nash equilibria that are common in games.

Transaction Costs

Richard M. Titmuss was made famous for his assertion in his book, The Gift Relationship, that compensating blood donors raised the risk of communicable diseases.

Rate of Hepatitis Infection0

1

2

3

4

Compensated Donors (US)Uncomensated Donors (UK)

Rosenberg’s Rule

“Societal ills generally increase at a greater rate than does return on capital.”

$

$10,000

$20,000

$30,000

$40,000

$50,000

Return on Capital (10% APR)Cost of Social Ills (20% APR)

$6,727

$38,338

Positive Side-effects

Charitable giving makes you:

Source: Brooks, Who Really Cares

Happier43% more likely to be “very

happy”

Healthier25% more likely to have “good

to excellent” health

WealthierAn average of $14,000

wealthier

Altruism and Charity

“The principle of compassion lies at the heart of all religious, ethical and spiritual traditions, calling us always to treat all others as we wish to be treated ourselves. Compassion impels us to work tirelessly to alleviate the suffering of our fellow creatures, to dethrone ourselves from the centre of our world and put another there, and to honor the inviolable sanctity of every single human being, treating everybody, without exception, with absolute justice, equity and respect.”

– Karen Armstrong, Charter for Compassion

Charity

8. Charity never faileth: but whether there be prophecies, they shall fail; whether there be tongues, they shall cease; whether there be knowledge, it shall vanish away.

9. For we know in part, and we prophesy in part.

10.But when that which is perfect is come, then that which is in part shall be done away.

1 Corinthians 13

Charity

10.When I was a child, I spake as a child, I understood as a child, I thought as a child: but when I became a man, I put away childish things.

11.For now we see through a glass, darkly; but then face to face: now I know in part; but then shall I know even as also I am known.

12.And now abideth faith, hope, charity, these three; but the greatest of these is charity.

1 Corinthians 13

Altruism and Charity and

Ethics

Altruism, Charity, and Ethics

“At the final day the Savior will not ask about the nature of our callings. He will not inquire about our material possessions or fame. He will ask if we ministered to the sick, gave food and drink to the hungry, visited those in prison, or gave succor to the weak.”

- Elder Joseph B. Wirthlin

Altruism, Charity, and Ethics

“Love is the greatest of all the commandments—all others hang upon it. It is our focus as followers of the living Christ. It is the one trait that, if developed, will most improve our lives.”

- Elder Joseph B. Wirthlin

Altruism, Charity, and Ethics

“I believe we have all been created for greater things than we can comprehend. But such accomplishments are not achieved by fierce competitiveness, calculated one-upmanship, or cold indifference to others. True greatness will always be predicated upon love, respect, compassion, dignity, prayer, hard work, God.”

- Elder Jeffrey R. Holland.