There’s a decent body of research indicating cash transfers actually are as effective as in-kind charity (often found to be even more efficient). With more recently neuance being added hinting at when one or the other is better at achieving long-term benefits. This is the basis behind charities like Give Directly. If you’re interested in some background:
Any assumption that direct cash payments will be misspent as a reason to prefer in-kind welfare isn’t justified IMO. Benefits are fungible. Any money saved on food / childcare / whatever will be respent either efficiently (or not) in similar proportions to the direct money welfare… But administrative costs and externalities with in-kind transfers tend to make them less efficient on average.
There’s a decent body of research indicating cash transfers actually are as effective as in-kind charity (often found to be even more efficient). With more recently neuance being added hinting at when one or the other is better at achieving long-term benefits. This is the basis behind charities like Give Directly. If you’re interested in some background:
Randomized trial of cash compared to food welfare in Mexico: https://www.aeaweb.org/articles?id=10.1257/app.6.2.195
OECD counties comparing cash transfers to expanded childcare and education: https://read.oecd-ilibrary.org/social-issues-migration-health/money-or-kindergarten-distributive-effects-of-cash-versus-in-kind-family-transfers-for-young-children_5k92vxbgpmnt-en#page5
India based comparison, noting the effectiveness and perception of the in-kind charity impacts long term results (e.g. social stigma of receiving food charity): https://www.sciencedirect.com/science/article/abs/pii/S0306919214000499
Any assumption that direct cash payments will be misspent as a reason to prefer in-kind welfare isn’t justified IMO. Benefits are fungible. Any money saved on food / childcare / whatever will be respent either efficiently (or not) in similar proportions to the direct money welfare… But administrative costs and externalities with in-kind transfers tend to make them less efficient on average.