An idea to help fight poverty

Scarcity mentality

Eldar Shafir, professor of psychology at Princeton University, has done an interesting study with colleagues among Indian sugarcane farmers. They receive about 60% of their total annual income immediately after harvest. It turns out that one part of the year farmers live in relative poverty, and the other - in relative wealth. The researchers asked them to take an IQ test before and after harvest. And before harvest, they showed the worst results. Living conditions in poverty resulted in a loss of 14 IQ points. This is comparable to the effects of a sleepless night or the effects of alcoholism.

When people lack something, they make worse decisions.

In such a state, it is impossible to think about long-term prospects. George Orwell, who experienced poverty in the 1920s, wrote that it "destroys the future." Poor people do not make stupid decisions because they themselves are stupid. In the conditions in which they live, anyone would have acted the same unwisely.

The way out of the situation is an unconditional basic income

Modern economists offer various ways to solve this problem. For example, helping the poor with paperwork or sending them messages so that they do not forget to pay bills and do not accumulate debt. This decision is especially to the liking of politicians: there is practically no need to spend money on it. But after all, it will only eliminate some of the symptoms, and not eliminate the whole problem.

So why not change the living conditions of the poor? More than 500 years ago, the philosopher Thomas More mentioned this idea in his book Utopia. This is an unconditional basic income - an amount that is paid monthly and which is enough to cover basic needs: housing, food, education. It should be issued to everyone without any conditions.

This is not a blessing of the government, but the right of everyone.

Plus, an unconditional basic income can help redefine the way we work. Now millions of people consider their work to be meaningless. According to a 2013 survey, only 13% of respondents are truly interested in what they do at work. In another survey, 37% believe their job is not needed at all.

Canadian experiment

There have been many experiments to introduce an unconditional basic income. Perhaps the most important of these took place in the Canadian Dauphin in 1974. For five years, all residents of this small town received a guaranteed income. With the change of government, the experiment ended, and its results were analyzed only 25 years later.

Economist Evelyn Forget found that the people of Dauphin were not only richer, but also smarter and healthier. The performance of schoolchildren has significantly improved, the frequency of hospitalization has decreased by 8.5%. And people didn't quit their jobs. Only women with small children and students began to work less. Experiments in other countries have had similar results.

Finally

Naturally, everyone is wondering where to get money for basic income. In fact, it is not as expensive as it seems. For example, economists estimate that in 2013 it would take 175 billion to lift all those in need in America out of poverty - a quarter of US defense spending, or 1% of GDP.

It is possible to get rid of poverty, and we should all strive for it. It's time to stop sending old things and toys to the poor. For example, instead of paying salaries to officials who are supposed to help the poor, why not distribute these funds directly to those in need?