March 30, 2007
New York City Offers Cash Rewards To The Poor
The city is embarking on a new pilot program to offer cash to poor families to motivate them to "break the cycle of intergenerational poverty." The public-private plan which has raised $42 million in private funds so far is called Opportunity NYC, and Mayor Bloomberg said, "If you’re serious about tackling poverty, an entrenched problem that has proven resistant to conventional government programs, you have to be serious about trying new things, taking a new tack. That’s what we’re here to do today." From the press release:
- Education incentives will promote superior attendance and good behavior in school, achievement and improved performance on standardized tests, and parental engagement in children’s education.For instance, exemplary attendance in elementary could earn $25 every two months, while exemplary high school attendance earns $50. Getting high scores on exams is worth $200-300, and things like going for check-ups or keeping a job would also be rewards. The city estimates families will earn $3,000-5,000.
- Health incentives will be offered to maintain adequate health coverage for all children and adults in participant households as well as age-appropriate medical and dental visits for each family member.
- Employment and training incentives will promote increased employment and earnings or combine work activities with specific job training activities.
The NY Times reports that there is a "similar effort in Mexico," and spoke to some critics: One said, "It will be, in fact, impossible to bring more people into the middle class unless we improve the labor market as well.” A Manhattan Institute fellow told the NY Sun, "It could destroy the ordinary incentive system that usually motivates people to engage in good" behavior. You are going to create in people the expectation that they should do such proper things as take their children to school or study only if they are bribed by the government. I think the potential for unintentional consequences for this program are absolutely enormous."
The program will use private funding during the pilot, which will be offered to 5,000 families (half in the control group) in Central and East Harlem in Manhattan, Brownsville and East New York in Brooklyn, and Morris Heights/Mount Hope and East Tremont/Belmont in the Bronx. The Post says that families will have to have children enrolled in grades 4, 7, or 9, and "The families couldn't earn more than 130 percent of the poverty level, or about $20,000 a year for a single parent and two kids." If the program is successful, the city will look for government funding. The Rockefeller Foundation, Starr Foundation, Robin Hood Foundation, Open Society Institute and AIG have contributed a total of $32 million; it's unclear how much Mayor Bloomberg may have personally contributed.
What do you think of this program? Do you think it has legs? Or is it a better concept?
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cf. the Chris Rock bit... you know the one. Where people want credit for shit they're suppoused to do.
"I take CARE of my kids!"
"You're SUPPOUSED TO TAKE CARE OF YOUR KIDS YOU DUMB M**********ER..."
the schools are already overburdened, and that's with like 75% attendance. just wait until all the junior high/high school kids actually start coming to the schools everday
You ask if we think it's better in concept that in practicality, and I think it's actually the other way around. The concept itself is shameful, but the practical result of children actually getting doctor's appointments and attending school might be beneficial.
One of the real problems, I think, is that the official poverty line is way too low. Approx. USD 15,000.00/year for a single parent and two children? We need to seriously reevaluate how poverty is calculated in this country.
Part of me is intrigued by the idea but I mostly hate it.
While I guess if you're "poor" help is help, it's degrading when you get right down to it.
The other point is that while this is a pilot funded by non-public seed money, I know that I wouldn't want my taxes subsidizing laziness. I know that poor != laziness in all cases but offering incentives for school attendance feels wrong.
Wear a rubber, stop the cycle.
How about giving that money to the teachers for teaching the kids who actually show up on their own merit because they want to learn vs those that just want to get paid.
So we're supposed to give people money for doing what they should be doing? Think I'll pass.
I think this is a decent idea but just giving out money to people who don't have any to begin with could be disastrous. We should, instead of just giving out cash, have it deposited into a collge fund or something along those lines. Because, what good is money in breaking the poverty cycle if education does not follow right behind?
Next thing we'll be paying people NOT to do things.
Like every week you don't commit a felony you get $50. Every week you don't do drugs with your children might be $25. Every week there are no 911 calls about you, you pocket $10.
Maybe people who need to get paid to send their kids to school should get one-way bus tickets instead.
Buy them rubbers and the pill.
bleeding heart - how would you measure poverty then? first, cost of living varies from place to place, second, people at the (admittedly entirely arbitrary) poverty line now are much better off in terms of consumption than they were 50 or even 25 years ago, and third by global or historical standards, very very very few people in america could legitimately be called poor.
i personally think this is a great program. first, its important that we experiment with new ideas instead of relying on existing new deal type programs, which obviously don't work out too well (otherwise this wouldn't be news.) second, these programs have been successful in a lot of other countries, so there's evidence that they work. and finally, how could helping to align poor peoples' short term and long term incentives possibly be bad?
OK so what's being offered here is a piece of cheese for going into the maze .(The "Maze" here would be life and all it's struggles)Navigate the perils within. (Get [5] more pieces of cheese, & a firm pat on the head for good behavior)I'm sorry I can't do the rest of this bit . It insults the shit out me and every New Yorker . I understand the motive behind this program, To me it's a slap in the face to every parent ! I digress, Maybe if the current crop of parents would take the time to "Raise their off spring" there would be no need for such "Assholishism" by the city . Parents don't be afraid to punish your kids . If they act out don't be afraid too whup that ass! Hell if more parents beat their kids asses we wouldn't have to deal with them telling you what to do instead of you telling them what to do ! They get out of line in public, Smack them across the mouth curse them out ! I'm just saying ......Fear is a very valuable tool for a parent !
To finish my point, It's not always being poor that's the cause of poverty . Sometimes it's the individual themselves that need that proverbial "Kick in the ass" !
Wouldn't it be cheaper and more effective to simply BUY the children from their parents, make them wards of the state, and then send them away to a place like the Hershey school where they can be removed from the ghetto entirely?
You'd have to make sure the parents don't replace their children with more though. Not sure how you would do that.
Bribing people to do the right thing? A disturbing concept. Reminds me of that skell on the subway who assures you as he hits you up that he doesn't "rob or steal". Doing the right thing should be its own reward, whether or not you get paid.
I am amazed to see that every comment on this page is negative. The government already pays rich people to make better choices: tax breaks on higher education, tax breaks for home owners, tax breaks for giving money to charity. Tax breaks don't help people making $20,000 a year for a family of 4. If this program of incentivizing people to go to school or to get necessary and timely medical care is successful, NYC could save hundreds of thousands of dollars. I am all for it.