Cash Is Simpler, but It's Not Trivial

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Cash is simpler, operationally than a lot of things. It takes the decision making, which can often be quite costly. We're paying recipients to do the thinking for what they need and what's best for them. There are various ways in which you could give more decision making power to the people that we purport to serve.

Economic theory teaches that people make choices that provide them with the greatest benefit. So why not extend this idea to the realm of charity? Economists and social entrepreneurs Michael Faye and Paul Niehaus of GiveDirectly argue that giving people cash with no strings attached is the most cost-effective means of helping the poorest people in the world and their communities.