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roland comments on AndrewH's observation and opportunity costs - Less Wrong
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Increasing the payoff of begging just increases the number of beggars until the average wage once again falls to the point where it is just marginally unattractive - or so I've heard. I think someone once suggested that if you visit a poor country and want to help, do not under any circumstances give money to beggars; find someone who seems to be doing something productive, and give the money to them.
Good point! I live in Brazil and in some places you can actually rent babies to improve your success at begging as a woman.
Also what will the beggars do with the money? The truth is most of them will spend it on drinks. Begging attracts a certain type of persona, why do you want to encourage it instead of giving a help to people who are not begging? In some cases beggars will actually make more money than people doing serious work.