43
" Countless aid organizations and governments are convinced that they know what poor people need, and invest in schools, solar panels, or cattle. And, granted, better a cow than no cow. But at what cost? A Rwandan study estimated that donating one pregnant cow costs around $3,000 (including a milking workshop). That’s five years’ wages for a Rwandan.17 Or take the patchwork of courses offered to the poor: Study after study has shown that they cost a lot but achieve little, whether the objective is learning to fish, read, or run a business.18 “Poverty is fundamentally about a lack of cash. It’s not about stupidity,” stresses the economist Joseph Hanlon. “You can’t pull yourself up by your bootstraps if you have no boots.”19 The great thing about money is that people can use it to buy things they need instead of things that self-appointed experts think they need. And, as it happens, there is one category of product which poor people do not spend their free money on, and that’s alcohol and tobacco. In fact, a major study by the World Bank demonstrated that in 82% of all researched cases in Africa, Latin America, and Asia, alcohol and tobacco consumption actually declined.20 "
― Rutger Bregman , Utopia for Realists: How We Can Build the Ideal World
48
" The idea that the GDP still serves as an accurate gauge of social welfare is one of the most widespread myths of our times. Even politicians who fight over everything else can always agree that the GDP must grow. Growth is good. It’s good for employment, it’s good for purchasing power, and it’s good for our government, giving it more to spend. Modern journalism would be all but lost without the GDP, wielding the latest national growth figures as a kind of government report card. A shrinking GDP spells recession and, if it really shrivels, depression. In fact, the GDP offers pretty much everything a journalist could want: hard figures, issued at regular intervals, and the chance to quote experts. Most importantly, the GDP offers a clear benchmark. Is the government doing its job? How do we as a country stack up? Has life gotten a little better? Never fear, we have the latest figures on the GDP, and they’ll tell us everything we need to know. Given our obsession with it, it’s hard to believe that just eighty years ago the GDP didn’t even exist. "
― Rutger Bregman , Utopia for Realists: How We Can Build the Ideal World
50
" Giving away free housing, it turned out, was actually a windfall for the state budget. State economists calculated that a drifter living on the street cost the government $16,670 a year (for social services, police, courts, etc.). An apartment plus professional counseling, by contrast, cost a modest $11,000.30 The numbers are clear. Today, Utah is on course to eliminate chronic homelessness entirely, making it the first state in the U.S. to successfully address this problem. All while saving a fortune. "
― Rutger Bregman , Utopia for Realists: How We Can Build the Ideal World
57
" In recent decades, our welfare states have come to look increasingly like surveillance states. Using Big Brother tactics, Big Government is forcing us into a Big Society. Lately, developed nations have been doubling down on this sort of “activating” policy for the jobless, which runs the gamut from job-application workshops to stints picking up trash, and from talk therapy to LinkedIn training. No matter if there are ten applicants for every job, the problem is consistently attributed not to demand, but to supply. That is to say, to the unemployed, who haven’t developed their “employment skills” or simply haven’t given it their best shot. "
― Rutger Bregman , Utopia for Realists: How We Can Build the Ideal World
58
" It was during the 1970s that statisticians decided it would be a good idea to measure banks’ “productivity” in terms of their risk-taking behavior. The more risk, the bigger their slice of the GDP.14 Hardly any wonder, then, that banks have continually upped their lending, egged on by politicians who have been convinced that the financial sector’s slice is every bit as valuable as the whole manufacturing industry. “If banking had been subtracted from the GDP, rather than added to it,” the Financial Times recently reported, “it is plausible to speculate that the financial crisis would never have happened.”15 The CEO who recklessly hawks mortgages and derivatives to lap up millions in bonuses currently contributes more to the GDP than a school packed with teachers or a factory full of car mechanics. We live in a world where the going rule seems to be that the more vital your occupation (cleaning, nursing, teaching), the lower you rate in the GDP. As the Nobel laureate James Tobin said back in 1984, “We are throwing more and more of our resources, including the cream of our youth, into financial activities remote from the production of goods and services, into activities that generate high private rewards disproportionate to their social productivity.”16 "
― Rutger Bregman , Utopia for Realists: How We Can Build the Ideal World