Let's start the new year on a positive note:|
The Power of Free Money
In the 2010 report "Just Give Money to the Poor," researchers from the Organisation for Economic Co-operation and Development give numerous examples of money being scattered successfully. In Namibia, malnourishment, crime and truancy fell 25 percent, 42 percent and nearly 40 percent, respectively, after grants were given. In Malawi, school enrollment of girls and women rose 40 percent in settings where money was given with or without conditions on its use. From Brazil to India and from Mexico to South Africa, free-money programs have flourished in the past decade. More than 110 million families in at least 45 countries benefit from them.
It is time to apply these lessons to rich but increasingly unequal societies. A world where wages no longer rise still needs consumers. Middle-class purchasing power has been maintained through loans, loans and more loans. The Calvinistic reflex that you have to work for your money has turned into a license for inequality.
Legend has it that while Henry Ford II was giving a tour around a new, highly automated factory to union leader Walter Reuther in the 1960s, Ford joked: "Walter, how are you going to get those robots to pay your union dues?" Reuther is said to have replied: "Henry, how are you going to get them to buy your cars?"