Thursday, December 08, 2016
Poor People Spend Money in Socially Useful Ways
A new meta-analysis looked at what poor people spend on if you just give them money. The worry is that they would waste it on cigarettes and booze. However, "not one of the 19 studies found that cash grants increase tobacco and alcohol consumption and many of them found that it leads to a reduction."
This is similar to the argument that I find persuasive for raising the minimum wage: poor people put the money right back into circulation, buying stuff they need. This employs other people, and is a more likely stimulus to the economy than giving more money to rich people. Plus, the poor peoples' lives are better.