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 above whatever amount is required to not starve to death. Subsistence wages can vary dramatically, and can even fall over time. (Gregory Clark in Farewell to Alms points out that some African countries are actually worse off in per-capita wealth than they were millennia ago because modern medicine let their subsistence wage fall even further.) If I may quote one of the experts, David Ricardo, on what a subsistence wage is:
It is not to be understood that the natural price of labor, estimated even in food and necessaries, is absolutely fixed and constant. It varies at different times in the same country, and very materially differs in different countries. It essentially depends on the habits and customs of the people. An English laborer would consider his wages under their natural rate, and too scanty to support a family, if they enabled him to purchase no other food than potatoes, and to live in no better habitation than a mud cabin; yet these moderate demands of nature are often deemed sufficient in countries where 'man's life is cheap', and his wants easily satisfied. Many of the conveniences now enjoyed in an English cottage, would have been thought luxuries in an earlier period of our history.
The inhabitants of Kiryas Joel clearly have a different subsistence wage than surrounding middle-class citizens because children are not a productive investment, and children use up resources that could go to the parents' subsistence.
Their salaries and wealth are not considered enough - by the outsiders - to raise a family properly, hence the whole discussion about whether Something Ought To Be Done and whether they are really that poor. Pace Ricardo, we are the English laborers who consider the Kiryas Joel incomes too potatoey to raise a family - yet manifestly, they are doing so.
* Caveat: if I understand the models right, there are ways involving the death rate that a population can be temporarily expanding but still in an equilibrium. They wouldn't apply here.
** I wouldn't be surprised if a polygamous Mormon sect somewhere was beating Kiryas Joel. But there are better stats and articles on them.
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.
Looking for a community in modern-day U.S. that is the closest to a Malthusian equilibrium is kind of like looking at the members of a billionaire country club and asking whose circumstances are closest to those of a homeless beggar. Technically, the question might have a well-defined answer, but it won't give you any insight into the life of a...
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?