In recent years, numerous studies of development aid have found impressive correlations between free money and reductions in crime, inequality, malnutrition, infant mortality, teenage pregnancy rates and truancy. It is also correlated with better school completion rates, higher economic growth and improvement in the condition of women.“The big reason poor people are poor is because they don’t have enough money,” economist Charles Kenny, a fellow at the Center for Global Development, wrote in June. “It shouldn’t come as a huge surprise that giving them money is a great way to reduce that problem.”
In the 2010 report “Just Give Money to the Poor,” researchers from the Organisation for Economic Co-operation and Development give numerous examples of money being scattered successfully. In Namibia, malnourishment, crime and truancy fell 25 percent, 42 percent and nearly 40 percent, respectively, after grants were given. In Malawi, school enrollment of girls and women rose 40 percent in settings where money was given with or without conditions on its use . From Brazil to India and from Mexico to South Africa, free-money programs have flourished in the past decade. More than 110 million families in at least 45 countries benefit from them.
It is time to apply these lessons to rich but increasingly unequal societies. A world where wages no longer rise still needs consumers. Middle-class purchasing power has been maintained through loans, loans and more loans. The Calvinistic reflex that you have to work for your money has turned into a license for inequality.
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