It doesn’t seem to make sense to spend money on the poor in other countries when we have so many poor at home. But it’s not that simple, explains Bill Gates. The ability of $1 to change lives is far different across countries.
The US spends only 1% of the federal budget on foreign aid. This is a tiny amount, but it does a great deal overseas. In a developing country, just $1 can help 100 more people than that same amount could help in America. So despite the small amount of the budget foreign aid takes up, money sent to third world nations is far more impactful in improving lives. Rich countries also benefit by giving poor countries support. The poor countries eventually become economically self-sufficient, and worldwide stability is improved.