Next week the Effective Altruism Forum is doing a Pledge Highlight week, and they asked if I could post an Ask Me Anything (AMA) about my experiences.
Most of the helpful background on me is in my post from last year, 10 years of Earning To Give. To highlight some potential prompts for questions:
- I work as a quantitative trader in London.
- I took the Giving What We Can pledge in 2013 upon leaving university, with a pledged percentage of 20%.
- My household has donated £1.5m over the last decade, or just under 50% of our household income.
- I've had a relatively high level of involvement in the EA community during much of that time period, though less in the past few years.
- My wife and I have 4 kids (14, 7, 3, 0).
I plan to answer questions on Tuesday 17th December, likely during the London afternoon.
This isn't about your giving per se, but have your views on the moral valence of financial trading changed in any notable ways since you spoke about this on the 80K podcast?
(I have no reason to think your views have changed, but was reading a socialist/anti-finance critique of EA yesterday and thought of your podcast.)
The episode page lacks a transcript, but does include this summary: "There are arguments both that quant trading is socially useful, and that it is socially harmful. Having investigated these, Alex thinks that it is highly likely to be beneficial for the world."
In that section (starts around 43:00), you talk about market-making, selling goods "across time" in the way other businesses sell them across space, and generally helping sellers "communicate" by adjusting prices in sensible ways. At the same time, you acknowledge that market-making might be less useful than in the past and that more finance people on the margin might not provide much extra social value (since markets are so fast/advanced/liquid at this point).
Thanks!
ETFs do sound like a big win. I suppose someone could look at them as "finance solving a problem that finance created" (if the "problem" is e.g. expensive mutual funds). But even the mutual funds may be better than the "state of nature" (people buying individual stocks based on personal preference?). And expensive funds being outpaced by cheaper, better products sounds like finance working the way any competitive market should.