The goal is to remove food stamps, income insurance (the dole, welfare, whatever you want to call it), rent subsidies, etc. All replaced with a single cash payment. Fewer programs, no income validation, no enforcement action after the fact, etc.
This also has the benefit of reducing friction on the consumption side. No need to exchange food stamps for cash at 50% face value in order to by beer, just take some of the cash and buy beer. Empower individuals to live how they want.
> No need to exchange food stamps for cash at 50% face value in order to by beer, just take some of the cash and buy beer. Empower individuals to live how they want.
It's been that way for quite a long time in Germany, cash is the default, vouchers are only a thing in rare cases where the cash component (~400Euros/month; rent, healthcare, utilities etc are paid directly) is reduced by more than 30% due to penalties so people can still buy food. Generally, people get cash and are free to spend it as they see fit.
A large problem with "cash only" (e.g. rent etc not paid directly) is that there's a significant number of people who are unable to handle money. I know, because I live next to some of them. If you give them 1100 euros instead of 400 in cash + 700 in rent and healthcare payments, you'll get plenty of people who spend their 1100 euros on things other than rent. And in that case, you'll either have to accept that they'll become homeless (and we won't accept that), or you have to still pay their rent directly, on top of whatever cash you give them.
That's development aid with extra steps then. Granted, you might argue that it's more efficient than regular development aid since it's bottoms up, not top down, but still. It's not going to re-circulate in the same economy that it's taxed out of.