RESEARCHERS FROM STANFORD UNIVERSITY AND OF THE WORLD
BANK LOOKED INTO THE ISSUE OF CASH TRANSFERS WITHIN GIVEN
COUNTRIES TO SEE WHETHER OR NOT GIVING MONEY, GIVING CASH
TO THE POOR, HAS A NEGATIVE OR POSITIVE IMPACT ON THEIR LIVES.
THE STEREOTYPICAL WAY OF THINKING ABOUT THIS IS THAT
FOR PEOPLE WHO USE THE MONEY ON DRUGS, ALCOHOL, AND TOBACCO.
BUT THROUGH THIS A META-ANALYSIS THEY FOUND THAT IS
ABSOLUTELY NOT THE CASE.
THEY DID THIS RESEARCH BY LOOKING AT 19 STUDIES.
THIS IS SOMETHING I HAVE ALWAYS KNOWN JUST BASED ON CASE
STUDIES I HAVE READ ABOUT IN THE PAST.
THE NOTION OF GIVING MONEY TO POOR PEOPLE, AND THEN THEN
TURNING AROUND AND USING IT ON DRUGS AND ALCOHOL IS A
NARRATIVE THAT IS USUALLY PLAYED OUT BECAUSE CONSERVATIVES
OR MEMBERS OF THE CORPORATE WORLD WANT TO PUSH THAT SO
MONEY DOESN'T GO TO THE POOR.
>> TO BE FAIR, THERE IS ONE OTHER THING, A LOT OF
PEOPLE THERE ONLY INTERACTION WITH THE SO-CALLED "
POOR, IS HOMELESS FOLKS.
THERE'S A CERTAIN NAIVETY IN SOME PEOPLE.
I REMEMBER IN COLLEGE PEOPLE WOULD GIVE MONEY TO THE
HOMELESS AND THEN THEY WOULD FIND OUT THAT GUY LATER ON
WAS HAVING A BEER.
THEY WOULD BE SHOCKED TO CHAGRIN.
I'M LIKE, DON'T BE RIDICULOUS, THAT IS A REAL HUMAN BEING
WHO IS DOWN AND OUT ON THEIR LUCK.
IF YOU DON'T HAVE MONEY, YEAH THEY WILL BUY FOOD BECAUSE THEY
ARE HUNGRY BUT ALSO A 40 BECAUSE THAT MAKES THE PAIN GO AWAY.
THE HOMELESS ARE NOT REPRESENTATIVE OF ALL THE POOR.
GIVING CASH TO POOR FAMILIES IS TOTALLY DIFFERENT THAN
GIVING A GUY WHO IS HOMELESS ON THE STREET A BUCK.
I REMEMBER AT SCHOOL PEOPLE WOULD BE LIKE THEY GOT A
BEER WITH IT.
>> YOU KIND OF ALLUDED TO THIS BUT I WANT TO MAKE IT CLEAR.
WE ARE TALKING ABOUT TWO DIFFERENT THINGS HERE.
GIVING A HOMELESS PERSON A DOLLAR AND THEN EXPECTING
THEM TO CHANGE THEIR LIFE ISN'T THE SAME AS A GOVERNMENT
REALIZING THEY ARE HAVING A POVERTY ISSUE AND THEN
GIVING INDIVIDUALS MONEY WHICH THEY CAN THEN ACTUALLY USE
TO CHANGE THE DIRECTION THEIR LIFE IS GOING.
>> IF YOU HAVE THAT INTERACTION WITH A HOMELESS PERSON
WHICH IS THE ONLY INTERACTION A LOT OF PEOPLE HAVE WITH THE
POOR, DON'T ASSUME THAT ONE INTERACTION APPLIES TO EVERYONE.
THE STUDIES BEAR OUT THAT IT ISN'T.
>>THE RESEARCHERS HYPOTHESIZED AS TO WHY THIS IS THE CASE.
WHY IF YOU GIVE THEM CASH WITH NO STRINGS ATTACHED ñ
A LOT OF DIFFERENT COUNTRIES HAVE TRIED THIS ñ
WHY IS IT THAT THEIR ALCOHOL OR TOBACCO CONSUMPTION GOES DOWN?
AGAIN IT REALLY DEPENDS ON HOW THE MONEY IS GIVEN TO THEM
AND WHETHER OR NOT IT IS ENOUGH TO MAKE A DIFFERENCE.
IF YOU'RE TALKING ABOUT GIVING A HOMELESS PERSON A COUPLE OF
BUCKS, THAT WILL NOT CHANGE THEIR LIFE.
BUT IF YOU'RE TALKING ABOUT A POOR FAMILY, IF YOU GIVE
THEM AN OPPORTUNITY THEY WILL TURN THINGS AROUND.
>> THERE IS A NUMBER OF WAYS YOU CAN DO THAT.
MONEY YOU GIVE TO THE POOR THEY SPEND ALMOST ALL OF IT BACK
INTO THE ECONOMY BECAUSE THEY HAVE TO.
SO FOR EXAMPLE MY DAD WHO WAS VERY POOR GROWING UP GOT A
FREE COLLEGE EDUCATION.
THAT MONEY LED HIM TO STARTING HIS OWN BUSINESS AND HIRING
A LOT OF PEOPLE GOT IT WOUND UP CREATING A MUCH BETTER
EFFECT FOR THE ECONOMY, HENCE ñ IT WASN'T LIKE A FREE
COLLEGE EDUCATION I WANT TO GO GET DRUNK.
HE ACTUALLY DID ALL THESE GREAT THINGS THAT WOUND UP
HELPING EVERYBODY INVOLVED.
WHEN YOU THINK ABOUT IT THAT WAY YOU THANK I CAN SEE HOW
THAT CAN LEAD TO A BETTER RESULT.
>>I WANT TO BRING UP UNDER BUSH'S ADMINISTRATION HE
GAVE THAT STIMULUS, REMEMBER?
THE $600 STIMULUS.
HIS IDEA WAS YOU GIVE AMERICANS THIS MONEY, THEY WILL SPEND
IT ON THE ECONOMY AND IT WILL STRENGTHEN THE ECONOMY.
BUT INTERESTINGLY ENOUGH IS THE VAST MAJORITY OF AMERICANS
USED IT TO HELP PAY DOWN SOME OF THEIR DEBT.
BY THE WAY IT DIDN'T EVEN STRENGTHEN THE ECONOMY, BUT
THE GOOD THING IS WHAT THE AMERICANS DO?
THEY USED IT RESPONSIBLY.
DIDN'T GO OUT THERE AND SPEND THE MONEY ON HOOKERS AND
COCAINE.
>> I DON'T EVEN THINK YOU CAN GET A LOT OF COCAINE WITH THAT.
I DON'T EVEN KNOW.
WHAT WINDS UP HELPING THE MOST IS GIVING IT TO WOMEN.
>>YES.
LET ME TALK ABOUT THAT.
GIVE THE MONEY TO WOMEN, JUST COMPLETELY BYPASS THE MEN.
THAT IS THE POINT OF THIS STORY.
>> IT REALLY IS TRUE THOUGH.
THERE IS A LOT OF MONEY THAT IS GIVEN IN MICROLOANS
THROUGHOUT THE WORLD.
WHAT THEY HAVE SEEN IS THAT IF YOU GIVE IT TO WOMEN IT
USUALLY HAS ñ IT GIVES YOU MUCH BETTER RESULTS THAN MEN.
THE FIRST THING WOMEN TRY TO DO IS ñ THIS IS GENERALLY SPEAKING
ñ THEY TRY TO PROTECT THEIR FAMILIES AND THEIR COMMUNITIES.
FOR EXAMPLE ONE OF THE THINGS THEY WILL SPEND MONEY ON IS
MAKING SURE THERE IS CLEAN WATER IN THE WELL WHICH THEN
MAKES EVERYBODY IN THE COMMUNITY HEALTHIER WHICH ALLOWS THEM
TO GET MORE JOBS.
THEY SAY THAT GIVING SMALL MICROLOANS TO WOMEN
SOMETIMES WIND UP HAVING WONDERFUL VIRTUOUS CYCLE
EFFECTS THROUGHOUT THE ENTIRE COMMUNITY.