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Helicopter drop
Well...airplane drop. Consider it another instance of zero overhead giving.
Posted by Tyler Cowen on June 2, 2008 at 11:07 AM in Economics | Permalink
Comments
Ironic since he is dropping it from overhead.
Also there is the cost of the airplane ride.
Posted by: Floccina at Jun 2, 2008 11:51:57 AM
I wonder what was the cost of treating the 13 year old girl who collapsed in the ensuing melee?
Posted by: M. Hodak at Jun 2, 2008 12:14:58 PM
Cf., Terry Southern, The Magic Christian.
Posted by: Martin at Jun 2, 2008 6:18:12 PM
Having people scramble and injure themselves seems to be rather irresponsible. At the end of the day, the donor has not improved society for the poor. There has been no job skill or any lasting benefit to the activity. If anything, one has contributed to pitting people against one another breaking down the social order.
This is not charity but self-promotion.
Posted by: Cassandra at Jun 2, 2008 10:14:56 PM
A new way to create inflation? Could this be used in an international stand-off like the Cold War to try to ruin the other country's macro fundamentals?
Posted by: Unit at Jun 2, 2008 10:50:10 PM
I prefer zero overhead giving because it factors in the fact that I don't know what others really need and don't want to make them waste resources getting it from me. But, call me a stick in the mud, but does giving people cash really help on net?
Sure, it helps them, but it hurts the giver. Now, it's probably better used by the recipient than the giver if the giver would have just bought ice cream. But, presumably, the giver wants to help, so they would be willing to put some thought into what might really help. Wouldn't some sort of investment in some productive capacity or some innovation help more than a cash gift?
I guess you are hoping that the recipient's personal local innovation has a greater net benefit than the giver's third-party preference, presumably on the basis of better information.
This is separate from an emergency situation, where the recipients may need aid immediately and broadly. Bootstrapping assistance could be better structured and targeted than cash handouts, but targeting to Marginal Revolution readers is surely better than a helicopter drop.
Maybe the best compromise is a microloan. It implies a demand for some return on the investment. It also encourages self-selection where those who seek the loans are more likely to be the local entrepreneurs or have a clear idea of game changing life improvement. I don't know what a local needs to really improve life sustainably, but I have a strong feeling it involves local entrepreneurs.
Posted by: Andrew at Jun 3, 2008 9:09:32 AM
Obligatory:
"As God as my witness, I thought turkeys could fly."
http://radio.about.com/library/blwkrpturkeydropaudio.htm
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