Source: New York Times
A CHINESE millionaire tried to give $300 (and lunch) to homeless men and women in New York last week. This didn’t sit well with the nonprofit New York City Rescue Mission. The Rescue Mission offered to help with lunch, but wouldn’t cooperate in handing out cash. So midway through a meal of sesame-crusted tuna and filet of beef, some 200 homeless people discovered that they would not be getting money. Instead, the Rescue Mission would accept $90,000 on their behalf. You can imagine the anger and humiliation.
The millionaire, a recycling tycoon named Chen Guangbiao, wanted to set an example of generosity in the world’s financial capital. To announce the $300 giveaway, he’d taken out a full-page advertisement in The New York Times.
The executive director of Rescue Mission said he was worried that people might spend the handout on drugs or alcohol. This pessimism (and paternalism) is common and understandable. But evidence from other countries suggests we should be more optimistic.