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JonahSinick comments on Some reservations about Singer's child-in-the-pond argument - Less Wrong
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The hypothetical here isn't realistic unless you're a billionaire. Here is a more realistic one: would you become an indentured servant for life in order to save the child? If your life time earning power is $5m, then becoming an indentured servent for life gets you less than 1/40 the way toward paying a million times the cost of saving a child.
Or, not merely more realistic, but actually having real instances: would you throw your whole productive life into earning as much money as possible in order to give nearly all of it away to the cause of saving children?
Right, that's better. In that case, I wouldn't say one has a moral obligation even to save the local child.