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Article Summary: Give Poor People Cash By Charles Kenny

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In his article, “Give Poor People Cash,” Charles Kenny presents a simple way to reform welfare: send money to those who need it without conditions. The author explains how when cash is given to poor people with no strings attached, the underprivileged use it to buy goods and services that increase the potential of their future earnings and thoroughly improve their lives. This evidence contrary to many Americans’ belief that the money would be wasted on alcohol, cigarettes, and flat-screen TVs. However, Kenny is confident that the best and simplest way to lift people out of poverty is to give them cold hard cash. Many policymakers shy away from this system because they argue the safety net could breed dependency. Ben Carson, for example, comments, “You rob someone of their incentive to go out there and improve themselves, [and that’s] not doing them any favors.” The author disagrees, for experiments suggest that cash transfers are not just a safety net; “they increase …show more content…

When governments provide in-kind support, it usually costs more to process and deliver that support than it would to distribute money, for a similar or lesser impact. Kenny shares, “At less cost to the government, cash programs led to the same health outcomes as food-based programs, but also provided additional resources for recipients to spend on schooling, medicine, and transport.” The author notes that cash has a larger multiplier effect, being that each dollar provided by a cash transfer circulated 2.59 times around the local economy before being spent elsewhere. Additionally, cash transfers can lead to productive investments as well. Overall, Charles Kenny feels strongly that cash transfers can help America’s poorest evolve from recipients to participants and this program will appeal to bleeding heart liberals and up-by-the-bootstraps conservatives

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