Making people richer

Abstract

This article discusses the effects of increasing the income of individuals, especially in developing countries, where cash transfers to the poor are considered investments in human capital that allow recipients to invest in basic necessities, health, education, and capital. The author argues that the social value of such investments can extend beyond the immediate increase in consumption due to the multiplier effects on productivity and income. The increased income also has positive effects on consumption and investment by recipients, potentially multiplying the initial impact. The author provides evidence from studies on cash transfers, suggesting that a $1 transfer can lead to $2-$8 of increased consumption. – AI-generated abstract