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Home Special Interest

Unconditional Aid as a Solution to Combat Poverty

Oshan Jarow argues that anti-poverty programs, such as the child tax credit (CTC), should be unconditional to effectively combat poverty.

  • Editor Staff
  • November 23, 2023
Child Tax Credit - Calculator, Dollar Bill, IRS Check, and Pen
(Shutterstock / Photo Contributor Charise Wilson)
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Oshan Jarow argues that anti-poverty programs, such as the child tax credit (CTC), should be unconditional to effectively combat poverty. The success of the expanded CTC in 2021, which temporarily removed income phase-ins and significantly reduced child poverty, demonstrates the impact of unconditional aid. However, the reinstatement of phase-ins in 2022 led to a sharp increase in child poverty rates, underscoring the need for policy changes.
  

Key Points 

  1. Effectiveness of Expanded CTC: The expanded child tax credit in 2021, without phase-ins, dramatically reduced child poverty, cutting it nearly in half.
  2. Reinstatement of Phase-Ins: The return of phase-ins in 2022 to the CTC led to an immediate increase in child poverty, reversing the gains made the previous year.
  3. Critique of Conditional Aid: Jarow criticizes the traditional approach of conditional aid, such as phase-ins, which excludes the poorest Americans and is less effective in reducing poverty.
  4. Evidence Against Phase-Ins: Recent evidence suggests that phase-ins do not significantly increase employment, challenging the rationale for their use in anti-poverty programs.
  5. Potential for Policy Change: The article advocates for unconditional aid in anti-poverty programs, citing the expanded CTC’s success as a model for future policies.

 

Source: https://www.vox.com/future-perfect/23965898/child-poverty-expanded-child-tax-credit-economy-welfare-phase-ins

Editor Staff

Editor Staff

The Editor Staff at SOFX comprises a diverse, global team of dedicated staff writers and skilled freelancers. Together, they form the backbone of our reporting and content creation.

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