Yes, Cash Transfers Work. Money alleviates poverty. It’s not complicated.
Posted by Sine_Fine_Belli
Yes, Cash Transfers Work. Money alleviates poverty. It’s not complicated.
Posted by Sine_Fine_Belli
2 Comments
**Every year about 26 million low income Americans, 17% of taxpayers, get $70 Billion in direct Cash and yet 19 million Americans are using Payday loans to pay for $500**
At a minimum I would expect for Payday Lending to have seen an impact from the EITC
When every year the EITC doesnt help Payday lending go away I stop caring a little bit more
Thn add on the next 2. The child tax credit was the single largest
program in terms of federal expenditures
on children ($118 billion) in 2019.
* Not a full Cash Transfer aimed only at the poor, so not the exact same
But add on 25 or 30 percent of that $119 Billion in Tax Credits to that $70 Billion for the same 26 million People is over $100 Billion
Add on a $60 Billion Food Stamp Program for 40 Million People. for the same 26 million People is over $150 Billion
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I have yet to receive feedback, so if you know of any similar programs in any other countries that works on poverty I welcome the feedback
I’d like more information on this. I’d recently listened to an interview with the lead economist from Give Directly and it sounded like his impression was generally “Yes, money to poor places makes more money in those poor places” but that it was complicated as to the effect size and measuring outcomes.
https://www.theatlantic.com/podcasts/archive/2025/05/the-myth-of-the-poverty-trap/682786/