Slate's Matthew Yglesias had an epiphany:
Poverty is, fundamentally, a lack of money. So doesn’t it make sense that simply delivering cash to poor people can be an effective strategy for alleviating it?First of all poverty is not fundamentally "a lack of money".
Widespread poverty is largely due to the Leviathan State; the destroyer of private property, savings, the accumulation of capital, entrepreneurs solving problems, and free and voluntary exchange. Widespread poverty is fundamentally caused by a lack of these!
Yglesias should strike a deal with Bernanke to take bags of freshly printed fiats and helicopter drop them over a poor country of their choice. Then come back to see that the green pieces of paper with scribbles on them have done nothing.
Yglesias continues the embarrassment:
But there’s striking new evidence that helping the truly poor really is as simple as handing them money. Money with no strings attached not only directly raises the living standards of those who receive it, but it also increases hours worked and labor productivity, seemingly laying the groundwork for growth to come.And to think that there are muggers and purse snatchers out there who are doing it all wrong. They keep ending up in jail.
Their plight falls on deaf ears. The Cops do not care that the money was going to the mugger's poor mother and father "with no strings attached". All the mugger really wanted to do was "raise the living standards" of his Mom & Dad. He stole the purse so that Mom & Dad could increase "hours worked and labor productivity".
Why won't the Cops listen?
Haven't they heard about the "striking new evidence"?
Well, muggers of the world unite! Matthew Yglesias has solved your problems (as well as those of the poor):
Get a government uniform!
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This article combined with with those about Dambisa Moyo provide an interesting insight. Same problem. Different scale. Same solution. Same result - failure. Chris has it right for both cases when he says, "Widespread poverty is largely due to the Leviathan State; the destroyer of private property, savings, the accumulation of capital, entrepreneurs solving problems, and free and voluntary exchange. Widespread poverty is fundamentally caused by a lack of these!".
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