After last week’s issue, a subscriber asked me where I would focus if I were given the authority and resources to tackle one thing. Naturally, I sent 8 options (because why follows the rules?), but they all boiled down to two things: money and our relationship to it, and our relationship to one another.
The latter is what I want to discuss here. When I mentioned that 200,000 Black New Yorkers have left the city since 2000, and that Black unemployment increased in the last decade, I could have also noted that 56% of the heads of households in homeless shelters are Black. These disparities may exist because of a failed policy or program, but policies are simply a reflection of our priorities. And policies that exacerbate disparities are often working as designed.
So, what would it look like to change our priorities?
Let’s dive in.
Jared Giles
Founder, SquareOne
[email protected]
Gif by news on Giphy
Investing in Our Future
The goal of workforce and economic development policy is to ensure families have access to jobs that pay a living wage and the skills and experience required to get those jobs. But wages haven’t kept up with the rising costs of childcare, housing, transportation, and food, and those costs are often amplified when an individual steps away from their low-wage job to participate in a workforce development program that might secure them a better job down the line.
Job training and up-skilling are critical components of economic mobility. But what if, instead of only reacting to the layoff announcement, shifting poverty eligibility requirements, or unemployment numbers, we simplified the equation and provided direct access to capital to the families that need it?
When individuals have direct access to money, both as an emergency cushion for unexpected life events and as an early foundation to build from, new options open up for them. Direct financial resources give families the freedom navigate unexpected challenges and build long-term wealth.
When given access to capital, families have the leverage to solve their own challenges and invest in their own futures.
There are already two remarkable models that show what happens when we invest directly in people:
The Bridge Project delivers unconditional cash support directly to mothers in states around the country like New York, Indiana, Maryland, Arkansas, and the Appalachia region. The payments provide mothers immediate relief, allowing them to buy diapers, pay for childcare, handle transit costs, pay rent, or cover any other costs with complete dignity and autonomy.
NYC Kids RISE Save for College Program opens and funds an NYC Scholarship Account for every kindergarten through fifth-grade student enrolled in a New York City public school. The funds are invested in the NY 529 Direct Plan so that every student (and I can’t stress every enough) can build a baseline of financial resources that can be used for higher education or training. The best part? It’s in the New York City budget. Every student gets $1,000 to start, and parents, businesses, and other partners can contribute additional funds.
When we combine direct cash for everyday emergencies with early financial investments in our children, we give families the tools to build sustainable, generational wealth.
National Spotlight: Denver Basic Income Project
Beyond New York, cities across the country are proving that direct capital is the most effective tool for helping individuals build stability.
The Problem: Traditional shelter and anti-poverty programs spend millions of dollars on intake, compliance, and services, yet they often struggle to move the unhoused into permanent homes.
The Intervention: The Denver Basic Income Project provided unhoused individuals in randomized controlled trials with unconditional direct cash payments for a year totaling either $600 or $12,000 per person
The Takeaway: Within 10 months, nearly 45% of participants secured housing. Full-time employment increased, and the program saved taxpayers over $580,000 in reduced emergency room, jail, and shelter costs. Direct cash provided unhoused individuals with the immediate agency, dignity, and leverage to effectively address their needs and secure a stable future.
ICYMI
[READ] Denver Basic Income Project: Year One evaluation report detailing the methodology and findings from their first year of providing direct cash assistance to unhoused individuals.
[WATCH] Bloomberg Live: Darrick Hamilton explains why baby bonds are necessary if we hope to close the racial wealth gap.
[LISTEN] The Giving Done Right Podcast: A discussion with UpTogether CEO Jesús Gerena on the benefits of direct cash payments.