There’s an implied heuristic that if someone makes an investment that gives them an income stream worth $X, net of costs, then the real wealth of their society increases by at least $X. On this basis, you might assume that if you give a poor person cash, and they use it to buy education, which increases the present value of their children’s earnings by $X, then you’ve thereby added $X of real wealth to their country.
I am saying that we should doubt the premise at least somewhat.
There’s an implied heuristic that if someone makes an investment that gives them an income stream worth $X, net of costs, then the real wealth of their society increases by at least $X. On this basis, you might assume that if you give a poor person cash, and they use it to buy education, which increases the present value of their children’s earnings by $X, then you’ve thereby added $X of real wealth to their country.
I am saying that we should doubt the premise at least somewhat.