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RaptorChemist's avatar

Given how many real problems EA has that could make for fruitful discussions, it is very annoying that in practice 80% of external criticism is socialists being mad that EAs aren't socialist. I guess you can write that article for the nth time if you really want to, but please do enough background reading to notice that GiveWell was started by hedge fund traders who sought to apply the ruthless profit-seeking mindset of stock investment towards the cause of saving lives. "EA has a capitalist mindset" is not a new observation, nor is it an accidental design flaw that has escaped our notice.

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Eschatron9000's avatar

Consulting is a pretty broad term and basically synonymous for "contractor with white-collar job".

In most cases (by number of workers; not sure about by dollar), it's a normal job. Alice wants a programmer to work on her widget software; instead of hiring one directly, she contracts Bob Consulting Ltd, who provides a programmer. This programmer may be the owner Bob himself, or Bob Consulting Ltd may hire Carol and send her to work for Alice.

In many cases, the consulting shop is specialised in some particular area, very often ads/marketing/similar analytics. Maybe Alice has her own widget-software programmers, but she wants someone to tell her if her ads are working. So she contracts Bob Consulting Ltd, sends Bob a spreadsheet of all the money she spent on ads and the widgets she sold, and Bob sends back recommendations for what types of ads she should buy more or less of.

This shades into a weird function of consulting: decision laundering. At Alice Inc, Mary Middle-Manager knows damn well what needs to be done, but she doesn't have the political sway to convince Alice the owner, or she wants to cover her ass in case it goes wrong. So she brings in Bob Consulting Ltd, tells Bob what she wants him to say, and he does, and it's all very official and shit can get done.

Similarly, sometimes it's hard for management to figure out what's going on in their own company. Things might just be messy, or employees might not dare talk sincerely with their bosses. In those cases, it can genuinely be cheaper to pay for a consultant to talk to your own employees and tell you what they said.

The standard joke about those situations is "A consultant is someone you pay to look at your watch and tell you what time it is".

So overall, you can't really make broad statements about consulting being good or bad, any more than you can for contractors or salaries. You can praise or condemn specific companies (dismantle McKinsey already) or areas (ads bad).

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