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80,000 Hours Podcast

#169 – Paul Niehaus on whether cash transfers cause economic growth, and keeping theft to acceptable levels

Oct 26, 2023
Paul Niehaus, co-founder of GiveDirectly and economist at UC San Diego, explores the transformative power of cash transfers for the poor. He discusses compelling evidence showing that direct cash aid can boost economic growth more effectively than traditional aid. Insights into recipients’ preferences for payment formats, the challenges of fraud, and the potential of Universal Basic Income (UBI) studies are highlighted. Niehaus also elaborates on how cash transfers impact decision-making and risk-taking, reshaping our understanding of poverty alleviation.
01:47:56

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Cash transfers have broader ripple effects on the economy, benefiting others beyond individual recipients.
  • Cash transfers are scalable and have the potential to address extreme poverty on a larger scale.

Deep dives

General Equilibrium Effects of Cash Transfers

Cash transfers have broader ripple effects and ramifications on the economy due to the interconnectedness of individuals. Studying the general equilibrium effects helps us understand the total consequences of cash transfers beyond individual recipients. When individuals receive cash transfers, they use the money for transactions, benefiting others as well. This mechanical effect of cash transfers on the broader community is significant and should be taken into account when analyzing the impact of such programs.

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