Michael Faye

The idea of giving poor people cash, no strings attached, is "very unappealing" for most donors, admits economist Michael Faye -- but it's still one of the best ways to help the poor. Michael and Julia discuss the philosophy behind his organization (GiveDirectly), the evidence we have so far about cash transfers as an anti-poverty intervention, and the various concerns people have about it: How long-lasting are the effects? Does it make recipients less likely to work? Does it cause inflation?

In this engaging discussion, billionaire philanthropist John Arnold, a former head of Enron’s natural gas trading desk, and Michael Faye, co-founder of GiveDirectly, share their transformative journeys. They delve into the emotional toll of Wall Street, Arnold’s pivot from trading to philanthropy, and how cash transfers can revolutionize poverty alleviation. Faye explains the importance of direct assistance, highlighting the immediate impact of their work. Together, they illuminate innovative strategies to rethink philanthropic efforts and address global challenges.

Michael Faye, President of GiveDirectly, and Paul Niehaus, Professor at UC San Diego, explore groundbreaking ideas in poverty alleviation. They advocate for cash transfers as the most effective method for helping the impoverished, emphasizing transparency and respect for recipients' choices. The duo discusses the economic impacts of these transfers on local communities, contrasting them with traditional aid models. They also delve into the inefficiencies of food aid logistics and analyze the potential of universal basic income in transforming lives post-crisis.