Rationally Speaking Podcast Is cash the best way to help the poor? (Michael Faye)
49 snips
Dec 23, 2021 AI Snips
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Episode notes
Why Not Cash?
- Michael Faye argues for prioritizing recipient choice, suggesting a "why not cash?" approach.
- He emphasizes that resources should be treated as belonging to the recipients, questioning the donor's right to dictate usage.
Empty Shops
- Michael Faye recounts a trip to a Kenyan refugee camp where shops were initially empty after election violence.
- After cash transfers, shopkeepers quickly restocked due to increased demand, demonstrating market responsiveness.
Chicken and Egg
- Michael Faye suggests a solution to the chicken-and-egg problem of introducing new products to impoverished markets.
- He recommends creating the market by starting businesses and ensuring demand through cash transfers, letting recipients choose.