During the pandemic, the Biden administration instituted a childcare tax credit. The credit provided families up to $300 per child and broadened eligibility rules. The result? Child poverty rates plummeted.
Senator Joe Manchin joined with Republicans to kill the childcare tax credit because Manchin reportedly believed that caregivers were using the money to purchase illegal drugs. A new study by the US Census Bureau released on Tuesday reports that child poverty nearly doubled as a result of the termination of benefits by Manchin and the GOP.
An article written by a social worker addressed that widespread, distorted view of poverty and poor people.
If my decades of work as a social worker taught me one great lesson, it’s this. Poverty is an entrenched system of political choices by self-serving lawmakers, not a personal failing of ordinary people…..
Not one person I’ve ever met wants to be poor, sick, disabled, struggling, or on the receiving end of public assistance programs. These programs are vital but often inadequate and difficult to access…
In 21st-century America, people have to be in extreme hardship to be eligible for help, even as they sometimes work multiple jobs. Not one mother relishes taking three buses in terrible weather to get to the Women, Infants, and Children (WIC) office to prove her worthiness to get help buying cereal for her toddler’s breakfast.
While the importance of hard work and individual talent to self-sufficiency shouldn’t be minimized, neither should it be exaggerated. When the focus is entirely upon the individual, when successes of any sort are attributed solely to individual effort, we fail to see the effects of social and legal structures that privilege some groups and impede others. When marginalized groups call attention to additional barriers they face, members of more privileged groups cling even more strongly to the fiction that only individual merit explains success and failure.
Anyone who has studied the issue, even superficially, knows that America’s social safety net is punitive and woefully inadequate. Too much of what we spend on the patchwork of programs we sneeringly refer to as “welfare” supports a needlessly complicated bureaucracy, rather than the people who desperately need help. (The working poor are basically ineligible.)
Worse still, these various programs are incredibly and arrogantly paternalistic. Bureaucrats–many well-meaning–decide what “those people” need, and legislate accordingly. Don’t buy a steak with those food stamps! Don’t continue to live in that neighborhood–we’ll move you to one we’ve decided is more appropriate.
If we just gave poor people money, and let them make their own decisions, it would be cheaper– and far more effective.
I have written before–and at length–about the multiple merits of a Universal Basic Income (UBI), and I hope at least a few of you will click through and read that expanded explanation, but today, I want to address the current “system” (note quotation marks) and the very expensive efforts to control what poor folks do with the benefits government provides.
A variety of UBI pilot projects have tested Manchin’s belief that idlers and other “unworthies” would simply use public money for booze or drugs. One such program has reached its halfway point, and its results mirror those of numerous other pilot projects.
Preliminary data is now available showing the effectiveness of guaranteed income as a means of combating poverty in Georgia – slightly more than half the women have saved some money, compared to none at the project’s outset; three times as many women have been able to afford childcare; and the share of women whose cellphone service was interrupted due to unpaid bills dropped from 60 to 40%.
These and other findings come as more than 100 projects centered on giving cash with no restrictions or requirements have started in the last several years, leading a group called Mayors for a Guaranteed Income to launch a nationwide speaking tour in recent weeks, screening a new documentary on these efforts called It’s Basic.
How did the recipients use these “no-strings-attached” funds? Most of the money went to utilities, food and rent. There were other positive effects; program researchers are measuring improved mental health, and researching whether participants are more likely to reach life goals with the help of guaranteed income.
Even homeless people act responsibly when given money. A Washington Post article reported on the results of a Canadian project that provided a lump sum of 7,500 Canadian dollars (about $5,540 today) to 50 people experiencing homelessness in Vancouver. Recipients spent fewer days homeless, increased their savings and put more money toward essentials compared with a control group of 65 people who received no cash transfer. It also saved the government money.
The study, which was published in the peer-reviewed PNAS journal this week, followed individuals for one year after they received the lump sum and reported no increase in spending on what researchers call “temptation goods,” defined as alcohol, drugs and cigarettes. By decreasing time spent in shelters, the intervention led to a decrease in public spending of 777 Canadian dollars (about $574) per person, the paper said.
Furthermore, a robust social safety net supports market economies. As Will Wilkinson, vice-president for policy at the libertarian Niskanen Center, argued in National Review, capitalists and socialists both misunderstand economic reality. The Left fails to appreciate the important role of capitalism and markets in producing abundance, and the Right refuses to acknowledge the indispensable role safety nets play in buffering the socially destructive consequences of insecurity.
Even capitalists would benefit from a simpler, more equitable and more reliable social safety net.