I’m not an economist (although I did stay at a Holiday Inn once), but just wondering:
Will this free money come from the Money Tree?
Foreign aid has its place in the quest to eradicate global poverty, but one economist believes free cash can go pretty far, too.
John McArthur, senior fellow at the Brookings Institution, wrote in a recent blog post that 66 countries in the developing world could theoretically afford to end poverty tomorrow, just by awarding citizens direct cash transfers….
McArthur’s proposed solution involves empowering countries to do more with what they’ve already got. Relying partly on the World Poverty Clock, a real-time ticker of how many people live in poverty worldwide, McArthur finds countries such as India, Indonesia, and Brazil could lift every extremely poor citizen out of poverty for less than 1% of each country’s gross national income.
Costs above 1% could cripple these countries in other important areas. They are place “where government revenues are typically equivalent to about 10 to 15% of the overall economy,” McArthur wrote. “Those budgets already need to cover an array of crucial expenditures like hospitals, schools, roads, courts, and police, separate from any direct transfers.”….