Cash Empowers: The Scandinavian Model of Welfare and Entrepreneurship

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Scandinavian countries like Sweden, Norway, and Denmark exemplify successful welfare states by providing substantial cash support to low-income individuals, fostering greater equality and improved social outcomes compared to the US. These nations demonstrate that financial assistance correlates with better education, health, and criminal justice results for the poor. Interestingly, they also lead in entrepreneurial ventures, with Stockholm boasting a high number of billion-dollar startups. This suggests that a robust social safety net reduces economic anxiety, creating an environment conducive to entrepreneurial risk-taking and innovation.

Extreme poverty, defined as living on less than $2.15 a day, has long been seen as an intractable problem. But what if the solution is simple? What if you could eradicate extreme poverty by just giving people cash? That’s what Rory Stewart believes. He’s the former UK Secretary of State for International Development and now a senior advisor to GiveDirectly, a non-profit that has distributed $800 million — in cash — to 1.6 million people around the world, including right here in the US. Today on the show, Rory charts his evolution from cash transfer skeptic to evangelist, shares what he wishes philanthropists like Bill Gates would do with their billions, and explains why he thinks it’s possible to end extreme poverty in our lifetimes.

🎙️ Check out Rory's previous appearance on this show on Apple Podcasts or Spotify

💸 Learn more about GiveDirectly at www.givedirectly.org

🎬 Watch Rory’s new TED Talk, “To End Extreme Poverty, Give Cash — Not Advice”

🎁 Get 20% off a Next Big Idea Club membership when you use code PODCAST at nextbigideaclub.com