Is it repugnant to give money to poor people?

from Market Design at on August 13, 2017 at 01:12PM

Chris Blattman’s weekly report includes a guest post by Jeff Mosenkis of Innovations for Poverty Action containing this interesting section on whether cash transfers to the poor are starting to be regarded as repugnant…

"Seema Jayachandran did a very popular Reddit Ask Me Anything about her Science paper on cash transfers for not cutting down trees (the AMA landed her on the front page of Reddit for the second time). In answering questions from the public, she was struck by how many people people had a moral objection to paying people not to do something (as opposed to traditional conditional cash transfers which reward people for doing something, like enrolling their children in school).

  • Similarly, NPR reports that despite an evaluation showing massive benefits to giving poor people cash in Zambia, moral objections from the public to giving “lazy” people free money limited the program eventually to just the “deserving” poor, such as the elderly, and people who can’t work.
  • Rich countries aren’t immune to this kind of thinking. A Vox The Weeds podcast (and parallel article) on the legacy of welfare reform from last year talks about how U.S. social safety net policy changed based on the public’s image of a single mother. At first, the U.S. image of a single mother was a widow trying to raise her children by herself. At that time it was seen as virtuous to help her stay home and raise her kids. When the public image of a single mother changed to a poor minority woman, programs began to see her as someone who should be out working and the design of the benefits changed.
  • Those of us who work in the world of evaluating the economics of anti-poverty programs are used to thinking about effectiveness and cost as the primary determinants policymakers need to know, but these are good reminders that the moral view of the design of the program may be just as important in determining whether a program gets implemented or gathers dust on a shelf."