The idea of giving poor people cash, no strings attached, is “very unappealing” for most donors, admits economist Michael Faye — but it’s still one of the best ways to help the poor. Michael and Julia discuss the philosophy behind his organization (GiveDirectly), the evidence we have so far about cash transfers as an anti-poverty intervention, and the various concerns people have about it: How long-lasting are the effects? Does it make recipients less likely to work? Does it cause inflation? (December 23, 2021)
Additional links:
- GiveDirectly’s website (and the link to donate)
- The paper examining how cash transfers affect local economies: “General Equilibrium Effects of Cash Transfers,” (Eggers et al, 2019)
- The paper examining whether cash transfers make people less likely to work: “Debunking the stereotype of the lazy welfare recipient,” (Banerjee et al, 2015)
- GiveWell’s evaluation of GiveDirectly as an organization, and the research on cash transfers
- A Vox article by Dylan Matthews, discussing the latest research on Give Directly’s cash transfers: “A charity dropped a massive stimulus package on rural Kenya — and transformed the economy” (November 25, 2019)