But if it is, note that the issue is where the next marginal $5000 should go — whether, given the current allocation of resources, marginal dollars do more good in first-world education than in third-world health.
I don’t think that’s the most important issue here. If teacher A is creating more value at teaching than he would be as a bond salesman donating to charity, then the government could (in theory) then shift $5000 worth of resources from education over to foreign aid as the teacher is generating more then $5000 worth of extra education value. Or Bill Gates could donate a little more to third world charities instead of US education charities (since he does both), ect. That is, if it would cost the government more money to create as much educational improvement as person X can then it would cost them to create as much third world charity improvement as person X can. then person X is probably doing more good in education.
I realize that in practice that’s not necessarily going to happen, but fundamentally, dollars are fungible; if person A can create more dollars worth of education value then he can create dollars worth of third world charity value, then that’s what he should do, and let someone else who can more efficiently give dollars to a third world charity then they can to first world education do that instead.
I agree that if the economy reliably distributes resources in a manner which is fair and is best for everyone, then fungibility of money implies that the most altruistic thing to do would be to create the most value as measured in dollars.
However, the economy is in fact not like this (and you seem to agree). I don’t understand why our hypothetical teacher/trader should act like it is.
I don’t think that’s the most important issue here. If teacher A is creating more value at teaching than he would be as a bond salesman donating to charity, then the government could (in theory) then shift $5000 worth of resources from education over to foreign aid as the teacher is generating more then $5000 worth of extra education value. Or Bill Gates could donate a little more to third world charities instead of US education charities (since he does both), ect. That is, if it would cost the government more money to create as much educational improvement as person X can then it would cost them to create as much third world charity improvement as person X can. then person X is probably doing more good in education.
I realize that in practice that’s not necessarily going to happen, but fundamentally, dollars are fungible; if person A can create more dollars worth of education value then he can create dollars worth of third world charity value, then that’s what he should do, and let someone else who can more efficiently give dollars to a third world charity then they can to first world education do that instead.
I agree that if the economy reliably distributes resources in a manner which is fair and is best for everyone, then fungibility of money implies that the most altruistic thing to do would be to create the most value as measured in dollars.
However, the economy is in fact not like this (and you seem to agree). I don’t understand why our hypothetical teacher/trader should act like it is.