How PolicyEngine shaped the outcome of the $1 million bet James Medlock won today
Our free tax calculator helped determine Balaji Srinivasan’s $500,000 payments to Medlock and GiveDirectly.
The high-profile Twitter bet between James Medlock and Balaji Srinivasan has reached its conclusion, and PolicyEngine played a pivotal role in shaping the outcome. On March 16, 2023, Medlock bet that the US would not enter hyperinflation, with Srinivasan taking the bet and wagering that Bitcoin would exceed $1 million US dollars within 90 days. The bet garnered widespread attention, with Medlock pledging to donate a portion of his potential winnings to GiveDirectly, a charity that provides unconditional cash transfers to extremely poor households in East Africa.
Today Medlock announced the settlement of the bet, revealing that Srinivasan had donated $500,000 to GiveDirectly and transferred an additional $500,000 to Medlock. Srinivasan also donated $500,000 in BTC to support Bitcoin Core development via Chaincode.
In our March 23 blog post, we presented a mini-app built with the policyengine-us Python package to calculate how much Medlock should donate to GiveDirectly in order to fulfill his pledge of achieving a 70% effective tax rate between taxes and donations. Our calculations ranged from $333,000 to $565,000, depending on Medlock’s other income.
Our free tax calculator and custom app informed Medlock and Srinivasan’s decision on a $500,000 donation to GiveDirectly, highlighting the impact of PolicyEngine’s tools in real-life decision-making scenarios.
GiveDirectly, too, has confirmed and shared the outcome (note our Twitter account is @ThePolicyEngine rather than @PolicyEngine).
We are thrilled that our policyengine-us Python package and Streamlit-built dashboarding app could contribute to this charitable outcome by providing Medlock with the necessary calculations to determine his donation amount. This example demonstrates the power and flexibility of our Python packages, and we look forward to continuing to build tools that can answer unique questions and support decision-making in various scenarios.
To learn more about how our free tax calculator guided the decision on Medlock’s donation amount, please refer to our previous blog post: How much should James Medlock donate to GiveDirectly?
