Algorithms Designed to Fight Poverty Can Actually Make It Worse


Scientific American November 2018

How algorithms designed to alleviate poverty can perpetuate it instead

Near the end of 2006 Mitch Daniels, then governor of Indiana, announced a plan to give the state's “neediest people a better chance to escape welfare for the world of work and dignity.” He signed a $1.16-billion contract with a consortium of companies, including IBM, that would automate and privatize eligibility processes for Indiana's welfare programs.

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