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On The Poverty Equilibrium vs NIBMYism
Big Yud recently posted an interesting thought, The Poverty Equilibrium. The most brutal possible summary is: despite an insane amount of technological progress over the last centuries, some people still toil all day in miserable jobs to provide for some urgent need and it's not clear why this is happening and therefore it's not clear that another 100x increase in utility will make it any different.
I have a not quite neat rebuttal. Maybe call it a partial agonist rebuttal: poverty kind of persists because of NIMBYism, but NIMBYism also prevents more poverty.
Lets take my town of Eugene Oregon as an example. Eugene has become a desirable place to live the last 10 years. It has moderate weather, rarely snowing but also rarely hitting the 100s. Is very bike friendly and it exhibits Portlandia levels of absurdity regarding organic and local food and products. You can exercise outdoors all year round, comfortably, and stunning natural beauty is a stones throw away. You're also surrounded by sensual hippies and violent crime is below average for the US, though there is the usual west coast share of scary homelessness and menacing.
Naturally, as a near-coastal elite city, building is heavily restricted and housing inventory is low so prices are high and home ownership is unreachable if you only make minimum wage ($14.70/hour). There are constant calls to build more affordable housing, but instead all that seems to get built are luxury apartments that don't alleviate housing shortages, regularly outraging the /r/Eugene subreddit.
EAs cry incessantly that NIMBYism is to blame for this state of affairs and if we would Just Fucking Build the cost of housing would plummet and gripping poverty would be solved.
One digression. Eugene has, wedged immediately against it, a town called Springfield. The quality of life is nearly identical, you have access to all of the luxuries I said above but maybe add 10 minutes of drive time. It's less bike friendly and the public spaces are a bit less nice. Alternatively, the police do enforce laws harder. Anyway, the cost of this almost-but-not-quite Eugene town is that housing is about 30% cheaper, into the range of comfortable if you make minimum wage. However, nobody wants to live there. Instead people treat living in Eugene like some human right and Springfield Oregon may as well be Springfield Missouri.
But back to NIMBYism, building more affordable housing would actually make living here worse and it can be argued mathematically: median income in Eugene is $30k. In the US, the top 10% of taxpayers provide about 70% of government funding. If you invite people who make less than the top 10% into your town, you make your town poorer. But it can also be argued in hand waving qualitative fashion: the population of the town is about 175,000. If we built 100,000 tiny houses that cost $400/month, the cost of housing would certainly plummet but the quality of life in town would collapse. Traffic, which barely exists here, would become awful, the public spaces would be full of much more homeless menacing, crime and littering would increase and the public services would be stretched thinner.
Aside from tragedy and also usual bad decisions that contribute to poverty (addiction, bad with money), poverty persists because it's actually pretty hard for some people to leave their town if it becomes unaffordable (family obligations, can't find a job in cheaper towns). Similarly, there are not robust ways to accommodate more poor people without making the entire town poorer. I can see how Kowloon Walled City can accommodate high population density but living there seems pretty unappealing compared to quiet quaint little Eugene. Could a 100x increase in utility fix this? Probably! If building was radically cheaper, I could imagine beautiful Sim City style arcologies that have these peaceful pockets of small towns that can support millions of people. But until then, NIMBYism is good actually and prevents poverty from spreading.
If you want Kowloon Walled City in America, on the other hand, what's stopping us? Plenty of room in Nevada. We can build a tech bro metropolis around it. Hell, I'd visit. I'd probably even buy an apartment there that's vacant 50 weeks a year.
I'm going to nitpick just the word choice here. Material goods are NOT utility. Utility is actual internal value: happiness/wellbeing/fulfillment/life-satisfaction etc. The endgoal of desirability/morality. By definition, a 100x increase in utility results in a world that is 100x better for everyone. However utility suffers from massive diminishing returns as a function of material goods, as Yudkowsky shows. A 100x increase in material productivity does not result in a 100x increase in utility.
sorry
but! I don't quite understand. what's an example of an increase in material productivity that's not an increase in utility?
They are increasing functions with respect to each other, but the effect is nonlinear. That is, if you make twice as many pizzas, people will generally be more happy, but less than twice as happy. You can only physically eat so much pizza, you only like pizza so much, and there are a bunch of things you care about that aren't food.
So first, let's construct scenarios where material productivity increases but utility decreases utility, starting with unambiguous but somewhat contrived and trivial ways that form a proof by example, and gradually transition into more sophisticated but debatable examples
-A bakery that produces 10 pizzas per day and serves them to customers, VS a bakery that produces 100 pizzas per day and shunts them off to a warehouse to rot. (Utility is derived via consumption, not production)
-A bakery that produces 10 pizzas per day and serves them to hungry poor people, VS a bakery that produces 100 pizzas per day and sends them all to the penthouse suite of a single really fat rich person who eats them all himself. (Utility per pizza is higher the fewer you already have)
-A bakery that produces 10 pizzas per day using the labor of 1 person working for 2 hours, who then goes home to his family and kids afterwards, VS a bakery that produces 11 pizzas per day using the labor of 1 person working for 16 hours, who goes home exhausted with most of his day gone. (Total output has gone up, but the cost has gone up more, so efficiency is lower)
-A bakery that produces 10 pizzas per day using the labor of 1 person working for 2 hours, who then goes home to his family and kids afterwards, VS a bakery that produces 80 pizzas per day using the labor of 1 person working for 16 hours every single day, who goes home exhausted with most of his day gone. (Pizza:labor efficiency is equal, but TIME also has nonlinear utility, so the quality of life for the worker has decreased even if he gets paid 8 times as much)
-A bakery that produces 10 pizzas per day using the labor of 1 person working for 2 hours, VS A bakery that produces pizzas with literally no labor or ingredient cost, but the pizzas somehow mess with their consumer's brains such that they to lose the ability to experience happiness ever again. (Obviously the most contrived example, but hopefully clearly pointing out the distinction).
The point being, that although all else being equal, more material production on its own is strictly superior to less material production for the same costs, all else is rarely equal. Therefore, increases in material production should be correlated with but distinct from actual utility. The biggest counterexample is the industrial revolution. Material production has, in reality, increased 100x. The wellbeing and happiness and prosperity of people has not increased 100x. It's gone up, for sure. But some things have gotten worse to compensate, and most things just have improved by less than a factor of 100x. The amount of joy you get from looking at art is less than a hundred times better than it was in the past. The enjoyability of food is less than a hundred times better. The amount of value you get from socialization is less than a hundred times more. Oh sure, you have access to a hundred times as much art, or food, or social connections via the internet, but you can't actually convert that into internal value, utility, at anywhere near perfect efficiency because you have bottlenecks based on time and biology and psychology. This is why Bill Gates isn't running around being thousands of times happier than everyone else: it doesn't work that way.
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