I imagine you've already thought about this, but won't increasing inflation (because we're not increasing production) eat all the gains?
I come from Venezuela, so I know first hand how government handouts to alleviate poverty work great in the short run, and reek havoc in the long run.... How do we keep global inflation from gobbling up the 60$?
Getting money to Americans who mostly have bank accounts and fixed addresses can be done using processes developed in the early 20th century (mailing checks, which can then be deposited into bank accounts).
The same is not true in most developing countries.
Only 57% of Romanians have a bank account and Romania is one of the more wealthy poor countries—poor to European standards, but not to world standards. Only 55% of Kenyans have bank accounts, the the number goes down from there all the way to Chad, where fewer than 9% of people have bank accounts.
This is one reason why Honduras—where only 43% of people have banking access—adopted Bitcoin as a currency. Cryptocurrency wallets function essentially the same as a bank account, where you can deposit and withdraw money stored away digitally. Now of course, the value of the money is highly volatile.
In most developing countries, however, the only way to get $61 to them is in cash. Most of the poorest people don't even have street addresses.
Hello,
I imagine you've already thought about this, but won't increasing inflation (because we're not increasing production) eat all the gains?
I come from Venezuela, so I know first hand how government handouts to alleviate poverty work great in the short run, and reek havoc in the long run.... How do we keep global inflation from gobbling up the 60$?
Cheers and thanks!
There's more problems than just cooperation.
Getting money to Americans who mostly have bank accounts and fixed addresses can be done using processes developed in the early 20th century (mailing checks, which can then be deposited into bank accounts).
The same is not true in most developing countries.
https://www.theglobaleconomy.com/rankings/percent_people_bank_accounts/
Only 57% of Romanians have a bank account and Romania is one of the more wealthy poor countries—poor to European standards, but not to world standards. Only 55% of Kenyans have bank accounts, the the number goes down from there all the way to Chad, where fewer than 9% of people have bank accounts.
This is one reason why Honduras—where only 43% of people have banking access—adopted Bitcoin as a currency. Cryptocurrency wallets function essentially the same as a bank account, where you can deposit and withdraw money stored away digitally. Now of course, the value of the money is highly volatile.
In most developing countries, however, the only way to get $61 to them is in cash. Most of the poorest people don't even have street addresses.