The man who gives away a third of his income

Would you give up a luxury to save a life?

Toby Ord has been giving away a third of his income for quite some time. A 33 year old academic at Oxford, he allows himself £18,000 a year, and donates the rest to charity.

"I’d always been idealistic about helping others", he says. "People would say “if you think that why don’t you give all your money to people in poor countries?" I think this was meant to make me shut up."

Instead he started giving away a large sum each year, and in the process set up a campaign - Giving What We Can - to encourage others to give away at least 10 per cent of their earnings.

Ord's subject is philosophy, and he came to the decision in a philosophical way. "I was writing on the subject of luxuries, and I came across the question of whether we should forgo a luxury if it would save a life. I realised this decision happens in our lives all the time."

"I was reading [the philosophers] Peter Singer and Thomas Pogge. The two of them think furiously about the problems of the world today. They both took their ideas very seriously and gave away a large proportion of their incomes. I decided I was going to make a commitment to give money to poor people."

To his surprise, people soon contacted him to see if they could do the same thing - and Giving What We Can was born.

"I'm not a natural leader for such an organisation", Ord says, describing himself as "more of a theoretician". But he has a very clear vision for the project.

"For me it [giving away a large percentage of income] doesn’t seem too odd. We literally have a choice to save hundreds of lives."

Yes, but giving money to charity never seems quite as straightforward as that. Can we ever be sure that what we give is really saving a life?

He agrees that would be more motivational if there was a "clear line of operation", and that the path from your wallet to saving someone's life can sometimes look "messy". "But if your money goes on, say, 200 mosquito nets in a malarial area there is no question. You will save a life."

What about the horror stories, the charity money that never makes it, the corrupt organisations that divert aid to their own ends?

"There are lots of rather garbled stories about problems with aid. These are bit stupid. The whole of the world is paying billions of dollars in aid, and people point to one or two things that go wrong. It is quite easy to find these problems which then act as excuses for not giving", he says.

"There is a perfect storm of excuses for forgetting about charities."

He admits that some charities are more effective than others, though.

"Charities can often benefit from thinking of effectiveness more. One of the targets for criticising them is the amount of money that goes into  administrative costs – but this is a bad measure of ineffectiveness - an organisation might need that level of spending on admin. I do think organisations should think about how they can help people more. There is a big academic literature on this. They should focus on outputs, and  not get hung up on brand – for example they should be prepared to  change the disease they are working on, if they could help more people that way."

French beggars. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman