A randomized experiment where money was directly transferred to poverty-stricken individuals solved 2 long-standing macroeconomic questions:
1) inflation was not increased - because the economy was constrained by demand, that is, plenty of people had not enough work, so extra money allowed them to work more
2) the money multiplied, in fact by 2.5 times - poor people are more likely to spend than to save newfound wealth, which in turn is mostly spent by the recipients thereby increasing the economy more than once, before it eventually leaves the local economy.
4:14 It turns out that giving money directly to poor people without any middlemen produced greater nutritional benefits than the same dollars spent on supplying food. Giving money directly to individuals 14:19 is more effective than sending it to organizations where, because of corruption and inefficiency, only a small percentage of donated funds reach poor individuals.
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