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Why do you think unconditional cash grants to the poor are so effective ?

I don’t know if you’ve heard of the studies comparing unconditional cash grants to the poor with giving them money allocated to education or food or healthcare and just giving them the money worked a lot better. https://www.poverty-action.org/impact/cash-transfers-changing-debate-giving-cash-poor (There’s a Wikipedia article as well.) To me this is kind of a inexplicable why just giving people money would work better. (Given that poverty impacts mental capacities and ability to plan and supposedly psychologically creates a scarcity mindset.) It’s really funny that unconditional cash grants to the poor were so effective. It honestly boggles them mind how someone with less education and in a highly stressful situation where their logical problem solving skills, working memory and cognitive capacities are suppressed could really know what’s best for them more than a much better educated, smarter, more clear thinking person who might have more access to better information on nutrition, education and opportunities…


I don’t know if you’ve heard of the studies comparing unconditional cash grants to the poor with giving them money allocated to education or food or healthcare and just giving them the money worked a lot better.

https://www.poverty-action.org/impact/cash-transfers-changing-debate-giving-cash-poor
(There’s a Wikipedia article as well.)

To me this is kind of a inexplicable why just giving people money would work better. (Given that poverty impacts mental capacities and ability to plan and supposedly psychologically creates a scarcity mindset.) It’s really funny that unconditional cash grants to the poor were so effective. It honestly boggles them mind how someone with less education and in a highly stressful situation where their logical problem solving skills, working memory and cognitive capacities are suppressed could really know what’s best for them more than a much better educated, smarter, more clear thinking person who might have more access to better information on nutrition, education and opportunities for spending the money or using it to the highest potential. (E.g. There is a lot of self help information out there on saving money, the cost per wear of clothes or how to spend money to ones greatest advantage or even about carrer or educational opportunities that might pay off). If one is in a suppressed situation one might not have access to this sort of information. It’s funny that the poor people would outperform those who were had more access to information and knowledge on spending the money. It’s really one of the weirdest things I’ve ever heard. You would really think they needed help problem solving etc

Why do you think that is ? Or if you’ve experienced poverty or have close experience with those who have probably you have a lot of insight that I don’t. Please share.

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