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I fully agree, but I don't think Peter Singer supports communist regimes; he merely argues that if one accepts certain basic premises, his conclusions follow. I wrote an essay in an ethics class arguing against him (somewhat successfully: I got an A), but his argument is strong. Also, a very practical objection is that sending money to charity is extremely inefficient and may be counterproductive with regard to a country's long-term well-being. Anyway, my main point was that Earthcubed's reasoning follows the same format as Singer's: that money spent in this particular instance could be better used for charity purposes and then singles out atheists as wasting money on uncharitable endeavors when we are all roughly equally guilty (not that it makes me feel guilty).
His ideas don't really sound Communistic, in fact his line of morality sounds like an off-shoot of the ethical constructs of Kant's Categorical Imperative and Comte's writings on altruism, the former of whom was seen as a proponent of voluntary constitutional republicanism not all that dissimilar from some of America's founding fathers.
The most effective charity is what is done within one's individual community, I think that foreign aid, whether done by government or private groups, is highly ineffective. Granted 2 years ago I was still sending money to Catholic Charities (which is overseen by the Roman Church, which I'm not affiliated with anymore), but even then I was a bit skeptical about how much of it actually made any sort of difference. If people like Singer spent more time pushing for political reforms and less sending money that would likely end up being seized by pirates and warlords, I'd respect him more.
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Now, you seem to be suggesting that people who live a comfortable lifestyle not buying $50 of extra junk/things not directly related to standard of living per month would lead to higher suicide rates. That's not a very strong objection. He'd argue that relieving suffering is morally obligatory (you'd agree that saving someone drowning in a lake is morally obligatory: you'd be an asshole to just walk by and ignore it) whereas merely increasing happiness through the purchase of unnecessary entertainment that one can easily go without grants a lesser marginal utility. Since distance is an arbitrary distinction, you are equally on the hook for helping out people on the other side of the globe as the person drowning in a lake.
Utilitarianism has always struck me as nonsensical, largely because people who argue for it (I'm not singling out your argument, but just commenting on a culmination of several writings and conversations I've had) will jump from saving someone while drowning, which wouldn't involve parting with material wealth, to me not being able to educate myself on the fine arts of early Venom and Celtic Frost because a political system in some 3rd world country systematically starves ethnic minorities within its own political borders for capricious reasons.
My retort to Singer would probably be that I don't work in concepts such as marginal utility because I am a rabid quasi-Objectivist Libertarian minarchist and think that both Jeremy Bentham and John Stuart Mill were trapped inside the box of British statist politics, which I flat out reject and believe invalidates the Utilitarian model, even when it is used by people that I have a lot in common with like Von Mises and Hayek. I'd also tell him that the practice of making generalized viewpoints on what may constitute a superficial purchase of "stuff" doesn't account for future donations of said stuffs to various charitable institutions such as Good Will, Salvation Army, or any other organization dealing in second hand, non-perishable goods, and also presupposes a centralized system of enforcement independent of any assertion that he may make that using government force isn't necessary. Immanuel Kant himself didn't suggest that using force was a good way to realize the higher form of morality he believed in, but that didn't stop people influenced by him such as Karl Marx using it to argue for just that.
I don't feel on the hook for anything regardless to how many news stories I may catch about suffering in the 3rd world, but people like Singer bother me because his ideas get picked up by politicians and further expand an already corrupt system of state run wealth redistribution that is neither effective, nor fair.