I think this is extremely applicable in inefficient third world economies, but I can think of a few reasons it might not be as applicable in a first world country like the United States.
- Most basic skilled services already have many providers.
- The startup costs for these services are significantly higher in first world countries.
- The expectations of consumers are also (probably) much higher.
So, I want to believe, but I'd like to see some evidence of broader applicability before we leap to conclusions. That brings up another problem, though: this is so much harder to do in a developed country because it is prohibitively expensive.
I the united states, studies have indicated that food stamps produce an economic return of $1.85 for every dollar spent. I would imagine additional cash spending could have a similar effect.
The Yukon isn't what most people think of as Canada, at least not the part of Canada that has ready access to "first world" (urban infrastructure) type services.
Nope, I didn't. Doesn't change too much. Once they try the experiment in all of Canada and make it permanent, then I'll acknowledge the it was tried in Canada. With a city size of just over 8000 (probably 7000 in the 1970s), it isn't likely to have a particularly complex economic environment.