Giving people money helped less than I thought it would

Summary

U.S. singer Eartha Kitt is seen at the end of the Poor People March, on June 19, 1968, in Washington, D.C. (Photo by ARNOLD SACHS/AFP via Getty Images)Just give people money. It's the simple, brute-force solution to so many problems. In low-income countries, charities are sometimes measured against whether their interventions are better than simply giving people cash. Even in high-income countries like the U.S., when disaster strikes, often the best thing you can do is get money into the hands of affected people immediately. They know whether they should use it to buy gas, rent an Airbnb or fly to their cousin's house one state over.So it wasn't that crazy to assume — particularly once promising pilots were released — that the same should be true for addressing chronic poverty in high-income countries. If you give a new mom a few hundred dollars a month or a homeless man one thousand dollars a month, that's gotta show up in the data, right?Alas.A few years back we got really serious about studying cash transfers, and rigorous research began in cities all across America. Some programs targeted the homeless, some new mothers and some families living beneath the poverty line. The goal was to figure out whether sizable monthly payments help people lead better lives, get better educations and jobs, care more for their children and achieve better health outcomes.Many of the studies are still ongoing, but, at this point, the results aren’t “uncertain.” They’re pretty consistent and very weird. Multiple large, high-quality randomized studies are finding that guaranteed income transfers do not appear to produce sustained improvements in mental health, stress levels, physical health, child development outcomes or employment. Treated participants do work a little less, but shockingly, this doesn’t correspond with either lower stress levels or higher overall reported life satisfaction.Homeless people, new mothers and low-income Americans all over the country received thousands ...