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comment by organicAnt
organicAnt  ·  3718 days ago  ·  link  ·    ·  parent  ·  post: What Makes People Poor?

    We spend a lot of money on the poor just to maintain their status as poor people, and not completely starving.

Now you hit the problem on the nail, not just in the US but most of the aid for the developing world is in the shape of basic needs, and usually after some catastrophe. People need new horizons to pull themselves out of the vicious cycle of poverty and education provides that.

    Microloans have been shown to be effective and to have remarkable high repayment rates in poor countries,

That doesn't seem to be true (referring to the high rates) for kiva.org - I got a lot invested on loans on that website and the rates seem reasonable.

    Something I've been pondering recently is whether a type of microloan system could work in the US.
Kiva also has a section for the US (called Kiva Zip), this might be what you're describing. Although the loans I've seen are not for people in extreme poverty but more starting entrepreneurs, which look fairly well off when compared with the borrowers in developing countries.




b_b  ·  3718 days ago  ·  link  ·  

    That doesn't seem to be true (referring to the high rates) for kiva.org - I got a lot invested on loans on that website and the rates seem reasonable.

High repayment rate means low default rate. Nothing to do with interest rates.

organicAnt  ·  3718 days ago  ·  link  ·  

Oh right, sorry my bad. English is my second language and sometimes things escape me. Thanks for clarifying : )