Most of us have been in conversations that included someone’s dismissive reference to “those people.”
When I was growing up in Anderson, Indiana (with exactly 30 Jewish families in the whole town), the term was often applied to Jews. It was also–and remains–a favored euphemism when race is being discussed by people who don’t like to think of themselves as racists; they just substitute “those people” for the “n” word when discussing the “lower orders.”
“Those people” is also a term frequently applied to the growing number of poor Americans. And it is particularly harmful when used in the context of economic policy. “Those people” wouldn’t need health care if they didn’t eat junk foods and fail to exercise; “those people” wouldn’t need social welfare programs if they weren’t lazy; any benefits provided to “those people” must be closely monitored, because they will use food stamps for candy and/or booze…”Those people” are irresponsible.
Facts and evidence are inconvenient things. Most poor people, according to overwhelming evidence, work 40 or more hours a week. Most recipients of food stamps use them to buy food. And there is growing evidence that needy folks are anything but irresponsible when they are given cash in lieu of benefit programs that are strictly “monitored.”
A recent study conducted by the Roosevelt Institute describes that evidence.
Providing cash directly to individuals has often been met with criticism, suspicion, and fear: the thinking goes that people who need financial assistance are not to be trusted, as their financial position reflects a moral failing rather than a societal one. These objections to cash transfer programs are rooted more in myth than empirical evidence. As the debate about a universal basic income gains prominence, it is important to set the record straight about the behavioral effects of unconditional cash assistance.
In this evidence review, we explore how unconditional cash transfers affected the behavior of recipients in three major natural experiments. While the amounts dispersed and time periods were distinct in each experiment, each provided money without set conditions and without a means test. We synthesize data for the following outcomes: consumption; labor force participation (employment, hours worked, and earnings); education; health; and other social outcomes, such as marriage or fertility choices. Each of these programs shares different components of a universal basic income (UBI), a cash transfer that everyone within a geographic/political territory receives on a regular basis with no conditions on a long-term basis. By understanding the effects of these programs, we can generate answers to how an unconditional cash transfer program might affect recipients in the future.
We may well be transitioning to an economy that simply cannot provide jobs for those who want them. Automation, as I’ve previously noted, is rapidly making many jobs obsolete. Changes in the way we purchase items–especially consumer goods– is inexorably reducing the number of workers in retail occupations.
The transformation of the economic landscape is accelerating, and it is a huge challenge–one which we ignore at our peril.
A UBI–a guaranteed basic income– may or may not be a viable approach to the dislocations to come. But continuing to sneer at the behavior of “those people” and dismissing emerging evidence of the utility of new social welfare proposals is clearly less viable.
A lot of the people who use the phrase aren’t all that far from becoming one of “those people” themselves.