Future Hindsight

Michael Faye is the president and co-founder of GiveDirectly, an organization that sends cash directly to people living in extreme poverty. We discuss why we should use cash as a new benchmark for international aid, unpack false assumptions about decision-making, and examine the benefits of universal basic income. Prioritizing individual needs is effective Humans largely make creative and wise decisions for themselves and their families. Despite a common belief to the contrary, the poor are good decision makers. Their track record in maximizing positive utility out of the funds they receive is better than aid organizations. Moreover, the freedom of choice provides dignity to the recipients. We need to empower more people with the agency to do what they consider best for themselves. Cash as a new benchmark In theory, we can end poverty today. Over $140 billion in global aid money is spent per year, while the global poverty gap is now estimated to be about half that amount. The data has shown that cash transfer