The Happiness Lab with Dr. Laurie Santos cover image

Giving Away Cash Makes You Happy... and Transforms Lives

The Happiness Lab with Dr. Laurie Santos

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Effectiveness of Cash Transfer in Reducing Homelessness and Costs

A year-long study showed that cash transfers reduced homelessness by 99 days per person, leading to significant benefits such as decreased risk of harm, assaults, substance use, and mental health issues. Recipients became less reliant on social services, saving the government an average of $8,277 per person. The net savings from the cash transfer program exceeded $700, indicating its cost-effectiveness. Data challenges the stereotype that low-income people may misuse the money, suggesting that cash transfer programs can be beneficial.

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