Am I misreading you, or are you actually comparing the living standards of Kiryas Joel with a Malthusian equilibrium?!
These people are as far from a Malthusian bare-subsistence situation as the regular developed world middle classes. The only essential difference is that their culture has solved the problem of collective action when it comes to various burdensome signaling arms races that are de rigueur in the mainstream society, so they don't bother to keep up with those. (That said, I don't know how onerous their own peculiar signaling arms races are. It does seem to me like they have it better, but maybe it's just that the grass looks greener on the other side.)
There is of course the issue that they seem to live off rent-seeking to a large degree. However, nowadays the same can be said for a considerable proportion (arguably a majority) of high-status people. The Kiryas Joel folks at least mind their own business and do nothing destructive, unlike so many prestigious rent-seekers who enjoy public accolades.
Am I misreading you, or are you actually comparing the living standards of Kiryas Joel with a Malthusian equilibrium?!
Kiryas Joel is, by definition, not in a Malthusian equilibrium because their population is expanding.*
However, they are far closer to Hanson's future Malthusian equilibrium than your average American community; probably they are the closest**. And so they are interesting from the utilitarian welfare point of view.
I'm not sure you understand Malthusian economics very well. A 'subsistence wage' is an arbitrary culturally set wage anywhere ...
I was browsing my RSS feed, as one does, and came across a New York Times article, "A Village With the Numbers, Not the Image, of the Poorest Place", about the Satmar Hasidic Jews of Kiryas Joel (NY).
Their interest lies in their extraordinarily high birthrate & population growth, and their poverty - which are connected. From the article:
From Wikipedia:
Robin Hanson has argued that uploaded/emulated minds will establish a new Malthusian/Darwinian equilibrium in "IF UPLOADS COME FIRST: The crack of a future dawn" - an equilibrium in comparison to which our own economy will look like a delusive dreamtime of impossibly unfit and libertine behavior. The demographic transition will not last forever. But despite our own distaste for countless lives living at near-subsistence rather than our own extreme per-capita wealth (see the Repugnant Conclusion), those many lives will be happy ones (even amidst disaster).
So. Are the inhabitants of Kiryas Joel unhappy?