BBQToadRibs2 wrote: “I was thinking that as well. Along the line of payouts for class action lawsuits. You get like 1-2% of what you hope you will get. If that.”
There were two reasons for small direct payments. First, was the recognition that giving money directly would be wasted. Second, was the realization that giving each recipient $40K (
a commonly talked about value) would create intense resentment. Imagine the reaction among those who would have to pay the reparations.
Then, there was the idea that the money would be spent more wisely by community organizers on the behalf of the recipients.
“Then, there was the idea that the money would be spent more wisely by community organizers on the behalf of the recipients.”
I will say if you give a large chunk of change to someone with little money management skill, you really haven’t done them any favors. They won’t know how to invest to build wealth and change their life. It’ll be spent on “retail therapy” as I call it. Spending in the moment that makes you feel good, but doesn’t really improve your financial future. In just a year or two, back to zero.