Showing posts with label altruism. Show all posts
Showing posts with label altruism. Show all posts

Sunday, December 18, 2016

Giving is like sex, it makes us human

Want to make someone incredibly happy? Give them $5, or $20. But you can't stop there.

A few years back researchers Elizabeth Dunn, Lara Aknin and Michael Norton approached students at the University of British Columbia Vancouver in the morning and administered a happiness questionnaire, after which they gave them either $5 or $20. They told half to spend it on themselves as soon as possible, and the other half to spend it on someone else.

The first thing they discovered when they readministered the happiness questionnaire at 5pm was that the amount of money made no difference. Five dollars did just as much as $20. And for those who had spent it on themselves (on magazines, at Starbucks and the like) that was nothing. They were no happier than they had been before.

But the half that spent the money on someone else (on toys for children, donations to the homeless and so on) were a good deal happier.

Without fully realising it, Dunn, Aknin and Norton had helped crack what's known as "happiness paradox" or "Easterlin paradox", named after the economist who came up with it. Based on inadequate measurements and broadly accepted until about a decade ago, it seemed to show that, when measured over time or between countries, more money didn't create more happiness.

It's now widely accepted that it does, at least for big changes in income. And it should. There's a lot you can do with more income, including giving it away. To the extent that more income does not create more happiness, that could be because people aren't doing the right things with it. As Dunn, Aknin and Norton put it, "how people spend their money may be as important for their happiness as how much money they earn".

So they surveyed workers at a large Boston firm one month before and two months after they received their annual bonuses, which averaged $US5000 ($6800). The more of their bonuses they had spent on buying things for someone else or donating to charity, the more their happiness had increased.

Even toddlers seem to delight in giving. Aknin videotaped children between the ages of 22 and 24 months who had been introduced to a puppet (a monkey) they had been told "liked treats". The researcher then gave them some treats (goldfish crackers) and asked them to share some with the monkey. Then the researcher "found" an extra one and asked them to pass it to the monkey.

Coding of the facial expressions by two assistants showed the children were happier passing the treats to the monkey than they were receiving them themselves. But they were the happiest of all when they gave up treats they already had to share with the monkey.

At the US National Institutes of Health neuroscientist Jordan Grafman conducted the same sort of experiment on adults, with their heads in a brain scanner. After money had been placed in their "accounts", they were presented with a list of charities and told they could pick some to donate to, or decide not to and take some of the money home.

Whenever they decided to donate, parts of their middle brain lit up, the same parts that control cravings for food and sex, and also the same parts that were activated when the money went into their accounts.

He concluded there was nothing particularly sophisticated about the decision to give. It was as basic as the need for sex, and food.

And sex comes into it. There was another bit of the brain that lit up: a small part of the frontal lobe that's full of receptors for oxytocin, the so-called "love hormone" that's released during sex, childbirth and breastfeeding.

Whereas adrenalin gives us "fight or flight", oxytocin gives us lust and trust. It makes us both more loving and more loyal, bonding us to each other. It's what most of us want.

Many of us are unhappy at Christmas. The Paul Kelly song How to Make Gravy is about someone who can't be with the ones he loves. He isn't feeling miserable because of what he won't get, he is feeling miserable because, this year, he won't be able to give; because this year he won't be flooded with oxytocin.

That makes it sound selfish, but it isn't. Giving is a human duty. It's what we do because we're part of the species. That's why it makes us feel better.

In The Age and Sydney Morning Herald
Read more >>

Saturday, August 13, 2011

Does the share market stop us giving?


Radio National will ask me that question at 3.00 pm today as part of its East Africa appeal

The answer seems to be no.

In the US, giving to charities rises with the share market but...



John List is the man. There's nothing much about giving he doesn't know.


Related Posts

. Australia is the most generous nation on earth?

. Sunday dollars+sense: Money can make you happy...

. Tragic acounting - the moral vacuum at the heart of modern economics



Read more >>

Monday, February 21, 2011

Tony Abbott owes $16,100

Summer is almost over but Tony Abbott is yet to come good on his commitment to provide surfing lessons to two Afghan refugees.

The two won the lessons in June when GetUp! bid $16,100 on eBay to win the prize offered to raise money for the charities supported by the press gallery's Mid-Winter Ball.

The $16,100 tag eclipsed the $12,600 raised for lawn bowls with Kevin Rudd and the $10,000 for dinner with then deputy Julia Gillard.

GetUp!'s Simon Sheikh says seven months on he is finding it hard to nail Tony Abbott down...

"We were told that it couldn't occur because it was winter, around the election time, the surf might not break very kindly. Now it is summer again, now we are about to go out of summer... and soon we will be at the point where the deal, which is to do it by June, will expire," he told the Ten Network's Meet the Press.

"I think that is disappointing. It was for charity. They have won the auction. We have given them a chance to go surfing and we can’t seem to get a way of getting Tony Abbott on the surfboard."

Mr Abbott's office told the Herald he stood by the commitment and was "looking to schedule it soon".

"It is something Tony will definitely honour," a spokesman said. "He has a problem with his hamstring but it will probably be right soon."

Published in today's SMH


Related Posts

. Asylum seekers: Bring them here, please

. Please. Don't reopen Nauru

. Abbott also destroys tax reform

Read more >>

Friday, December 17, 2010

Jack on the meaning of compassion



There are few postures quite as serpentine as that of the bully who disguises his cruelty as some kind of love...

Since our colonial inception, Australia has been a home for the wretched, the unfortunate and the brave, those courageous enough - or stupid enough - to find themselves leaving it all behind in the pursuit of a life on the other side. That the sons and daughters of those very people are slamming the door on beggars is odious enough. That they’re claiming to do it in the name of “compassion” - today, of all days - is a sick joke, and the sick jokers peddling it should never be taken seriously again.



Here's his full post


Related Posts

. Asylum seekers: Bring them here, please

. Please. Don't reopen Nauru.


Read more >>

Friday, September 10, 2010

Australia is the most generous nation on earth?

That's what thew new Gallop World Giving Report says.

The top 10 most-generous countries, in order:

1. Australia
1. New Zealand
3. Ireland
3. Canada
5. Switzerland
5. United States
7. Netherlands
8. United Kingdom
8. Sri Lanka
10 Austria



Gallup found that giving money is more strongly correlated with happiness than with gross domestic product. HT: CATHERINE RAMPELL

By the way, happiness is itself correlated with Sunshine. We've lots of that.


World Giving Report



Related Posts

. Why we are so much more than commerce - from an organisation that does nothing but

. Economics is about so much more than the pursuit of happiness - Samuelson knew it

. Sunday dollars+sense: Money can make you happy...


Read more >>

Monday, January 04, 2010

Monday, December 14, 2009

Economics is about so much more than the pursuit of happiness - Samuelson knew it


Paul Samuelson is dead, at 94.

I feel as I felt when other legends died - bereft.

Of course, he taught me economics - through his great textbook, co-authored in Australia with Keith Hancock and Robert Wallace.  (I was fortunate enough to have Hancock and Wallace teach me in person, so academically I was indeed Samuelson's child).

Here's are two magnificent NYT obituaries.

Two things to add, for now.

One is that two years ago, when Samuelson was 92, he wrote an article observing:

When I come to write a newspaper article like this 10 years from now, I believe America may still be leading the pack in per-capita affluence. But in all probability, the China that has already displaced Japan as the economy with the second biggest total gross domestic product will likely have a total GDP equal to America's.

Full marks for style. Only people who knew his age got the joke.

The other is to point to this 1993 paper "Altruism as a Problem Involving Group versus Individual Selection in Economics and Biology".

The title may not be snappy, but the content...

It influenced me a lot. Many economists still haven't freed themselves to see the world as it is, as Samuelson wants.

An extract:

Mesmerized by Homo economicus, who acts solely on egoism, economists shy away from altruism almost comically. Caught in a shameful act of heroism, they aver: "Shucks, it was only enlightened self interest." Sometimes it is. At other times it may be only rationalization (spurious for card-carrying atheists): "If I rescue somebody's son, someone will rescue mine."

I will not waste ink on face-saving tautologies. When the governess of infants caught in a burning building reenters it unobserved in a hopeless mission of rescue, casuists may argue; "She did it only to get the good feeling of doing it. Because otherwise she wouldn't have done it." Such argumentation (in Wolfgang Pauli's scathing phrase) is not even wrong. It is just boring, irrelevant, and in the technical sense of old-fashioned logical positivism "meaning-less." You do not understand the logic and history of consumer demand theory — Pareto, W. E. Johnson, Slutsky, Allen-Hicks, Hotelling, Samuelson, Houthakker,... — if you think that is its content.


They are some of the most sharpened, lethal, sentences ever used in economic debate.

He wrote well, he thought well, he taught well, and he was usually right.


Samuelson on Altruism

Related Posts

. If we are on the verge of a worldwide recession...

. Professor Friedman is dead

. John Vincent is dead. He can't be.

Read more >>

Sunday, June 08, 2008

Sunday dollars+sense: Money can make you happy...

...if you give it to someone else.

The results are in, and they look pretty conclusive.

Researchers at the University of British Columbia and the Harvard Business School have just confirmed it in three ways.

First they surveyed 600 Americans and asked how much they spent on themselves and how much they gave away or spent on other people.

Asking how happy each was they found that personal spending was unrelated to happiness but that giving was.

Then they found 16 workers who were about to receive a bonus. A few weeks before and a few weeks after the bonus they asked each about their happiness and also about what each had done with bonus.

Guess what? The more of his or her bonus the worker gave away the happier her or she felt. Indeed that turned out to be a better predictor of happiness than how big the bonus actually was.

And then they turned their attention to their students...

They tested 46 of them for happiness in the morning and then gave them envelopes of money with instructions on how to spend it.

They phoned them at night to test how their happiness had changed.

Some found $5 in their envelopes, some $20. Some has been asked to spend it on themselves, some on other people.

Again, those who spend it on other people felt the best. Sometimes they bought things for friends, sometimes they gave it to charities – it didn’t seem to matter.

And nor did it matter how much money they were given. Getting $5 boosted a student’s happiness just as much as getting $20 did - so long as it was given away.

The results were clear. But something puzzled Elizabeth Dunn and her team of researchers.

If giving money away really made people happier, why did they do so little of it?

Even $5 a day could make a big difference.

The answer turned out to be “ignorance”.

They described their envelope experiment to a new set of students and asked them to guess what kind of envelope and what kind of behaviour would make them the happiest.

The students were “doubly wrong”. They thought that those given the most money would be made the happiest, as would those who kept it rather than gave it away would be the happiest.

Most of us might be like the students. We won’t do something that will make us happy because we don’t believe that it will.

Or we didn’t.

Now you know.


Reference: Dunn, E.W., Aknin, L., & Norton, M. I. (2008).
Spending money on others promotes happiness. Science, 319, 1687-1688.
Read more >>