Pitchfork Economics with Nick Hanauer

Why don't we fight poverty by just giving people money? (with Paul Niehaus)

Aug 29, 2023

Paul Niehaus, co-founder of GiveDirectly, discusses the impact of giving cash directly to people living in extreme poverty. He explores the logistics of implementing digital cash transfers in Sub-Saharan Africa and the positive outcomes it can have on nutrition, teen pregnancies, child marriages, and mental health. The podcast also explores the feasibility of eradicating global poverty through cash transfers, government partnerships and innovations during the pandemic, and the role of higher tax rates in fighting poverty.

38:18

Episode guests

Paul Niehaus

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Direct cash transfers can stimulate economic development and improve various aspects of people's lives in extreme poverty.

GiveDirectly's approach of providing direct cash transfers challenges traditional methods of poverty alleviation and empowers individuals to make responsible decisions with the funds.

Deep dives

Direct cash transfers can stimulate economic development

The podcast episode highlights how giving money directly to individuals living in extreme poverty can stimulate economic development. By providing people with cash transfers, they are able to purchase goods and services from others, creating a cycle of economic growth. This unorthodox approach challenges traditional methods of economic development through large NGOs and government projects. Studies have shown that direct cash transfers have positive impacts on various aspects of people's lives, such as nutrition, mental health, and reducing teen pregnancies. The episode also discusses the scalability and affordability of this approach, highlighting that a relatively small percentage of global income could potentially eradicate extreme poverty.

Introduction

2min

Digital Cash Transfers in Sub-Saharan Africa

21min

Solving Global Poverty: Feasibility and Cost

6min

Government Partnerships and Innovations in Response to the Pandemic

2min

Alleviating Poverty with Direct Cash Transfers

5min

Fighting Poverty and the Role of Higher Tax Rates

3min

We saw during the pandemic that giving people cash is good for individuals and the economy as a whole. It makes sense: When people have more money, they spend it in their communities and stimulate the local economy. So why don’t we give people money all the time? Our guest today started a charity that combats poverty by giving people cash, with no strings attached, to use how they wish. The results have been really encouraging. Paul Niehaus, co-founder of GiveDirectly, explains how his program works—and more importantly, why it works.

Paul Niehaus is an economist at UCSD and an entrepreneur working to accelerate the end of extreme poverty. He is co-founder, former president, and current director at GiveDirectly, the leading international NGO specialized in digital cash transfers and consistently rated one of the most impactful ways to give.

Twitter: @PaulFNiehaus

GiveDirectly https://www.givedirectly.org

Website: http://pitchforkeconomics.com

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer