si

U.S. Intervention in Russia-Saudi Impasse Isn't Tenable (Radio)

Meghan L. O’Sullivan, Professor of International Affairs at Harvard’s Kennedy School, former National Security Council advisor, and a Bloomberg Opinion columnist, discusses the oil market plunge, and the Russia-Saudi relationship. Hosted by Lisa Abramowicz and Paul Sweeney.




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Urban Waste to Energy Recovery Assessment Simulations for Developing Countries

In this paper, a quantitative Waste to Energy Recovery Assessment (WERA) framework is used to stochastically analyze the feasibility of waste-to-energy systems in selected cities in Asia.




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Harvard Business School Professor Rebecca Henderson Outlines Ways Organizations are Changing in Response to the Coronavirus Pandemic and Climate Change in New Edition of "Environmental Insights"

Rebecca Henderson, the John and Natty McArthur University Professor at Harvard University, shared her perspectives on how large organizations are changing in response to the coronavirus pandemic and climate change in the newest episode of "Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program," a podcast produced by the Harvard Environmental Economics Program. Listen to the interview here. Listen to the interview here.




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Transatlantic Dialogue: The Missing Link in Europe’s Post-Covid-19 Green Deal?

This policy brief emphasizes that the European Green Deal's effectiveness in a post Covid-19 world will require the involvement of strategic partners, especially the US. In the context of a potential US withdrawal from the Paris Agreement and the consequential vacuum, it will be even more important to engage the US in implementing the GD. In light of divergence between the US and the EU during past climate negotiations (e.g. Kyoto, Copenhagen, and Paris), we suggest a gradual approach to US engagement with GD initiatives and objectives.




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Transatlantic Dialogue: The Missing Link in Europe’s Post-Covid-19 Green Deal?

This policy brief emphasizes that the European Green Deal's effectiveness in a post Covid-19 world will require the involvement of strategic partners, especially the US. In the context of a potential US withdrawal from the Paris Agreement and the consequential vacuum, it will be even more important to engage the US in implementing the GD. In light of divergence between the US and the EU during past climate negotiations (e.g. Kyoto, Copenhagen, and Paris), we suggest a gradual approach to US engagement with GD initiatives and objectives.




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Coronavirus Crisis Shows Cracks in the U.S. Governing System, Analysts Say

China’s autocratic system has performed better in some aspects than America’s democracy so far in responding to the coronavirus pandemic, but it is too early to write off the United States despite its many early missteps, analysts at a China Institute event said.




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Button looks for positives

Jenson Button looked took some positives out of a disappointing weekend for McLaren after finishing eighth in the Hungarian Grand Prix




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Vettel sorry after Button collision

Jenson Button admitted the collision which ended his Belgian Grand Prix was a "massive blow" adding that he "did not know what he [Sebastian Vettel] was doing"




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The Russians Manipulated Our Elections. We Helped.

When Russian intelligence officers plotted their campaign to destabilize American politics in 2016, they had nearly a century of experience in covert manipulation to draw upon. The Internet had given the Russians new tools for this mischief. But their secret weapon was us — an open, divided, angry America.




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History Warns Us to Avoid a W-shaped Recession

“Those who do not study history are condemned to repeat it.”  And the rest of us are condemned to repeat George Santayana.

Will the Coronavirus Recession of 2020 be V-shaped?  Or U-shaped?  If we fail to heed the lessons of history it is likely to be W-shaped, with incipient recovery followed by successive relapses into sickness and recession.

As has been widely noted, we would have been better prepared to cope with the Covid-19 pandemic in the first place if everyone had paid more attention to the past history of epidemics. Be that as it may, the world is now deep into the pandemic and its economic consequences, the most severe such events since the interwar period, 1918-1939.  As decision-makers in every country contemplate their next steps, they would do well to ponder the precedents of that interwar period.




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Kobayashi signing justified after Valencia - Sauber

Peter Sauber believes his decision to take on Kamui Kobayashi this year has been justified by his recent performance at the European Grand Prix




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Pompeo’s Silence Creates a ‘Crisis of Morale’ at State Department

Lawmakers released documents and messages this week that appear to show associates of U.S. President Donald Trump’s personal lawyer surveilling the U.S. ambassador to Ukraine, Marie “Masha” Yovanovitch, amid a campaign to oust her from her job. They are the latest documents at the center of the impeachment investigation into Trump’s efforts to pressure Ukraine into investigating former Vice President Joe Biden, a Democratic presidential rival.




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Asia Whole and Free? Assessing the Viability and Practicality of a Pacific NATO

This report will address four questions in the Pacific NATO debate. First, is there a historical precedent for a Pacific NATO? This report does find a precedent in the Southeast Asia Treaty Organization (SEATO), though it was largely unsuccessful due to its lack of regional adoption, weak mutual defense provisions, and ultimately became tainted by the Vietnam War.

Second, would such an alliance be necessary given the plethora of existing multilateral partnerships in the region? While there is a broad multilateral landscape in the Indo-Pacific, there is currently no agreement that combines both the wide reach and deep obligations of a hypothetical Pacific NATO. However, the Quad and RIMPAC do bring together many of the key Indo-Pacific powers and serve as an important foundation for U.S.-oriented multilateral regional security.

Third, how could such an alliance be structured? This report examines three options: expanding NATO’s mandate beyond Europe, building on its Enhanced Opportunity Partner (EOP) program, and creating a new alliance system. It also uses the case of Montenegro’s NATO accession to generate a broad set of criteria for future membership.

And fourth, how would Indo-Pacific nations, including China, respond to such an alliance? This would be exceedingly difficult. China has significant economic leverage over even our closest allies, like Australia and Japan.

Intractable internal disputes abound, particularly between South Korea and Japan and four nations—Malaysia, the Philippines, Taiwan, and Vietnam—with competing claims in the South China Sea. Two of the United States’ most important partners in the region, India and Singapore, have a longstanding aversion to exactly this type of alliance system. And for newer partners, like Malaysia and Indonesia, the value proposition is even less clear. The Chinese are likely to respond to any attempts at a multilateral military alliance in its backyard with a whole-of-government effort to stop it. If that alliance includes Taiwan, it could result in even more aggressive action.




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Cuomo for President?

The American economy is in an artificial coma, unemployment is soaring, and estimates of corona deaths in the U.S. are appalling. The President is currently speaking to the press almost daily about the situation. In the podcast, Tyson Barker, Deputy Director and Fellow at Aspen Institute Germany, and David Deissner, Managing Director of Atlantik-Brücke, speak with Peter Rough, Senior Fellow at the Hudson Institute, and Cathryn Clüver, Executive Director of the Future of Diplomacy Project and Project on Europe and the Transatlantic Relationship, Harvard Kennedy School's Belfer Center, on the President's crisis management, the role of states in managing the pandemic, and more.




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Kubica insists he pushed to the limit

Robert Kubica insists he pushed his Renault to the limit to take eighth place on the grid at the Korean Grand Prix




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Massa unhappy with sixth on the grid

Felipe Massa was far from happy with qualifying sixth on the grid for the Korean Grand Prix




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Bottas taking 'necessary measures' to return in Malaysia

Valtteri Bottas says he is taking the "necessary measures" to ensure he is declared fit to race in this weekend's Malaysian Grand Prix




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Bottas fit to race in Malaysia

Valtteri Bottas has been passed fit to return to racing this weekend at the Malaysian Grand Prix




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Seat and pedal position change for Bottas

Williams has changed the positioning of Valtteri Bottas' seat and pedals to ensure he does not suffer a repeat of the back injury which ruled him of the Australian Grand Prix




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The Dire Consequences of Trump's Suleimani Decision

Americans would be wise to brace for war with Iran, writes Susan Rice.

"Full-scale conflict is not a certainty, but the probability is higher than at any point in decades. Despite President Trump’s oft-professed desire to avoid war with Iran and withdraw from military entanglements in the Middle East, his decision to order the killing of Maj. Gen. Qassim Suleimani, Iran’s second most important official, as well as Iraqi leaders of an Iranian-backed militia, now locks our two countries in a dangerous escalatory cycle that will likely lead to wider warfare."




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The battle of 'resistance' vs 'revolution' in the Middle East

The events surrounding the US assassination of Iranian Quds Force leader Major General Qassem Soleimani brought to the surface the two main ideological forces that now battle each other across the Middle East - the anti-imperial "resistance" of Iran and its Arab allies, and the freedom "revolution" of domestic protesters in the same lands. 




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Rami Khouri's interview on Aljazeera TV discussing the appointment of the new Lebanese government.

Rami Khouri's interview on Aljazeera TV discussing the appointment of the new Lebanese government amidst continuing protests and clashes with police.




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Lebanon has formed a controversial new government in a polarised, charged atmosphere, and protesters are not going to be easily pacified by its promises, explains Rami Khoury.

The fourth consecutive month of Lebanon's unprecedented political and economic crisis kicked off this week with three dramatic developments that will interplay in the coming months to define the country's direction for years to come: Escalating protests on the streets, heightened security measures by an increasingly militarising state, and now, a new cabinet of controversial so-called "independent technocrats" led by Prime Minister-designate Hassan Diab.

Seeking to increase pressure on the political elite to act responsibly amid inaction vis-a-vis the slow collapse of the economy, the protesters had launched the fourth month of their protest movement, which had begun on 17 October last year, with a 'Week of Anger', stepping up their tactics and targeting banks and government institutions.




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Rami Khouri on Euronews TV discussing the Trump-Netanyahu Middle East initiative.

Rami Khouri's on Euronews TV discussing the Trump-Netanyahu Middle East initiative.




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How Do Past Presidents Rank in Foreign Policy?

How do presidents incorporate morality into decisions involving the national interest? Moral considerations explain why Truman, who authorized the use of nuclear weapons in Japan during World War II, later refused General MacArthur's request to use them in China during the Korean War. What is contextual intelligence, and how does it explain why Bush 41 is ranked first in foreign policy, but Bush 43 is found wanting? Is it possible for a president to lie in the service of the public interest? In this episode, Professor Joseph S. Nye considers these questions as he explores the role of morality in presidential decision-making from FDR to Trump.




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What Allies Want: Reconsidering Loyalty, Reliability, and Alliance Interdependence

Is indiscriminate loyalty what allies want? The First Taiwan Strait Crisis (1954–55) case suggests that allies do not desire U.S. loyalty in all situations. Instead, they want the United States to be a reliable ally, posing no risk of abandonment or entrapment.




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The Dire Consequences of Trump's Suleimani Decision

Americans would be wise to brace for war with Iran, writes Susan Rice.

"Full-scale conflict is not a certainty, but the probability is higher than at any point in decades. Despite President Trump’s oft-professed desire to avoid war with Iran and withdraw from military entanglements in the Middle East, his decision to order the killing of Maj. Gen. Qassim Suleimani, Iran’s second most important official, as well as Iraqi leaders of an Iranian-backed militia, now locks our two countries in a dangerous escalatory cycle that will likely lead to wider warfare."




si

The battle of 'resistance' vs 'revolution' in the Middle East

The events surrounding the US assassination of Iranian Quds Force leader Major General Qassem Soleimani brought to the surface the two main ideological forces that now battle each other across the Middle East - the anti-imperial "resistance" of Iran and its Arab allies, and the freedom "revolution" of domestic protesters in the same lands. 




si

Rami Khouri's interview on Aljazeera TV discussing the appointment of the new Lebanese government.

Rami Khouri's interview on Aljazeera TV discussing the appointment of the new Lebanese government amidst continuing protests and clashes with police.




si

Lebanon has formed a controversial new government in a polarised, charged atmosphere, and protesters are not going to be easily pacified by its promises, explains Rami Khoury.

The fourth consecutive month of Lebanon's unprecedented political and economic crisis kicked off this week with three dramatic developments that will interplay in the coming months to define the country's direction for years to come: Escalating protests on the streets, heightened security measures by an increasingly militarising state, and now, a new cabinet of controversial so-called "independent technocrats" led by Prime Minister-designate Hassan Diab.

Seeking to increase pressure on the political elite to act responsibly amid inaction vis-a-vis the slow collapse of the economy, the protesters had launched the fourth month of their protest movement, which had begun on 17 October last year, with a 'Week of Anger', stepping up their tactics and targeting banks and government institutions.




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Rami Khouri on Euronews TV discussing the Trump-Netanyahu Middle East initiative.

Rami Khouri's on Euronews TV discussing the Trump-Netanyahu Middle East initiative.




si

How Do Past Presidents Rank in Foreign Policy?

How do presidents incorporate morality into decisions involving the national interest? Moral considerations explain why Truman, who authorized the use of nuclear weapons in Japan during World War II, later refused General MacArthur's request to use them in China during the Korean War. What is contextual intelligence, and how does it explain why Bush 41 is ranked first in foreign policy, but Bush 43 is found wanting? Is it possible for a president to lie in the service of the public interest? In this episode, Professor Joseph S. Nye considers these questions as he explores the role of morality in presidential decision-making from FDR to Trump.




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What Allies Want: Reconsidering Loyalty, Reliability, and Alliance Interdependence

Is indiscriminate loyalty what allies want? The First Taiwan Strait Crisis (1954–55) case suggests that allies do not desire U.S. loyalty in all situations. Instead, they want the United States to be a reliable ally, posing no risk of abandonment or entrapment.




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'I'll be back', insists Webber

Mark Webber vowed to continue his fight for a first drivers' title after a disappointing German Grand Prix saw him finish an unaccustomed sixth




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Coronavirus Crisis Shows Cracks in the U.S. Governing System, Analysts Say

China’s autocratic system has performed better in some aspects than America’s democracy so far in responding to the coronavirus pandemic, but it is too early to write off the United States despite its many early missteps, analysts at a China Institute event said.




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As conflict intensifies in Nigeria’s North East, so too does a reliance on troubled militias

Since 2009, Boko Haram has caused devastating insecurity, impoverishment, displacement, and other suffering in Nigeria’s poor and arid North East region. Although the Nigerian government and military mobilized against the group between 2015 and 2018, intense insecurity and violence not only persist, but have actually increased since 2018. In the past two years, the Nigerian…

       




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How the AfCFTA will improve access to ‘essential products’ and bolster Africa’s resilience to respond to future pandemics

Africa’s extreme vulnerability to the disruption of international supply chains during the COVID-19 pandemic highlights the need to reduce the continent’s dependence on non-African trading partners and unlock Africa’s business potential. While African countries are right to focus their energy on managing the immediate health crisis, they must not lose sight of finalizing the Africa…

       




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Environmental Insights Interview with Nick Stern

An exclusive interview with Lord Nicholas Stern, one of the world’s foremost experts on climate change.

 




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Insight 219: Singapore in the Global Energy Transition

For decades, Singapore has been a premier refinery hub and gatekeeper between Asia and the Middle East, but its position is increasingly threatened as producer countries are shifting into the downstream activities that helped make Singapore the “Houston of Asia”. Oil and petrochemicals drive about one quarter of Singapore’s net exports. Greater competition in the global oil and gas value chain could take a heavy toll on the city-state’s national budget and economic growth prospects.




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How Clean is the U.S. Steel Industry? An International Benchmarking of Energy and CO2 Intensities

In this report, the authors conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries.




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Study Group on Energy Innovation and the Transition to a Low-Carbon Economy: Advising Fortune 500 Companies

This study group will explore the role of the private sector in evolving energy systems, and how corporations might change in a climate constrained world. 




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Illuminating Homes with LEDs in India: Rapid Market Creation Towards Low-carbon Technology Transition in a Developing Country

This paper examines a recent, rapid, and ongoing transition of India's lighting market to light emitting diode (LED) technology, from a negligible market share to LEDs becoming the dominant lighting products within five years, despite the country's otherwise limited visibility in the global solid-state lighting industry.




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U.S. Intervention in Russia-Saudi Impasse Isn't Tenable (Radio)

Meghan L. O’Sullivan, Professor of International Affairs at Harvard’s Kennedy School, former National Security Council advisor, and a Bloomberg Opinion columnist, discusses the oil market plunge, and the Russia-Saudi relationship. Hosted by Lisa Abramowicz and Paul Sweeney.




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Urban Waste to Energy Recovery Assessment Simulations for Developing Countries

In this paper, a quantitative Waste to Energy Recovery Assessment (WERA) framework is used to stochastically analyze the feasibility of waste-to-energy systems in selected cities in Asia.




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Harvard Business School Professor Rebecca Henderson Outlines Ways Organizations are Changing in Response to the Coronavirus Pandemic and Climate Change in New Edition of "Environmental Insights"

Rebecca Henderson, the John and Natty McArthur University Professor at Harvard University, shared her perspectives on how large organizations are changing in response to the coronavirus pandemic and climate change in the newest episode of "Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program," a podcast produced by the Harvard Environmental Economics Program. Listen to the interview here. Listen to the interview here.




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Transatlantic Dialogue: The Missing Link in Europe’s Post-Covid-19 Green Deal?

This policy brief emphasizes that the European Green Deal's effectiveness in a post Covid-19 world will require the involvement of strategic partners, especially the US. In the context of a potential US withdrawal from the Paris Agreement and the consequential vacuum, it will be even more important to engage the US in implementing the GD. In light of divergence between the US and the EU during past climate negotiations (e.g. Kyoto, Copenhagen, and Paris), we suggest a gradual approach to US engagement with GD initiatives and objectives.




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Designing Thoughtful Minimum Wage Policy at the State and Local Levels


Rising wage inequality and stagnant real wages have contributed to inequality in family incomes during the past three decades. While the expansion of the Earned Income Tax Credit (EITC) and the Supplemental Nutrition Assistance Program (SNAP) have helped mitigate the impact on low-income families (Bitler and Hoynes 2010), federal minimum wage policy has not contributed to the solution. The federal minimum wage has failed to keep pace with both the cost of living and the median wage in the labor market. As a consequence, working full-time at the minimum wage does not allow many families to escape poverty, or to attain economic self-sufficiency.

State and local governments can set minimum wages in excess of the statutory federal minimum wage. Indeed, state and local governments have played an important role in establishing minimum wages across the country; as a result, thirty-seven states had state minimum wages exceeding the federal level in 2007 prior to the most recent federal increase. Cities, too, have begun setting higher minimum wages, as evidenced by city-level wage minimums in Albuquerque, San Francisco, San Jose, Santa Fe, Seattle, and Washington, DC; other cities are actively exploring possibilities of raising minimum wages. 

In this policy memo, I propose a framework for effective state and local minimum wage policy. First, I propose using half the local-area median wage as an important gauge for setting an appropriate level of the minimum wage. Second, I propose that state and local governments take into account the local cost of living as a relevant consideration in setting a minimum wage, and I provide estimates of how state minimum wages would vary if they reflected cost-of-living differences. I also recommend the use of regional consumer price indexes (CPIs) to index the local minimum wage. Finally, I propose that cities and counties coordinate regional wage setting to mitigate possible negative effects of local mandates. 

The implementation of the state and local framework does not override the need for reform at the federal level. Thoughtful reforms to the federal minimum wage can help reduce poverty and mitigate inequality. The federal minimum wage has been the focus of substantial debate by academics and policymakers; this proposal focuses on state and local reforms that have received substantially less attention. These state and local reforms can be an important part of the policy portfolio for reducing the incidence of poverty and for helping low-income families support themselves as they strive toward the middle class. In particular, although the federal minimum wage serves as a floor in the labor market, there is some room for additional increases in higher-wage areas.

Downloads

Authors

  • Arindrajit Dube
Publication: The Hamilton Project
Image Source: Hero Images
     
 
 




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Was the TANF Welfare Program's Response to the Great Recession Adequate?


"It is fortunate that a major feature of American social policy is a series of programs, often referred to as the safety net, that are designed to provide people with cash and other benefits when they fall on hard times—which they are more likely to do during a recession," write the authors of a new report on the response of the Temporary Assistance for Needy Families (TANF) program—the major federal welfare program that replaced Aid to Families with Dependent Children (AFDC) in 1996—to the Great Recession that lasted from December 2007 to June 2009.

In their report, "The Responsiveness of the Temporary Assistance for Needy Families Program during the Great Recession," Ron Haskins, Vicky Albert, and Kimberly Howard write that "All in all, we conclude that the American system of balancing work requirements and welfare benefits worked fairly well, even during the most severe recession since the Depression of the 1930s."

Their report is based on three studies: (1) an examination of the changes in the TANF rolls compared to changes in AFDC rolls during previous recessions, plus changes in TANF rolls in relation to rising unemployment state-by-state; (2) a review of data on single mothers' likelihood to receive TANF benefits during the 2001 and 2007 recessions, their receipt of other program benefits, and what actions single mothers took to deal with the recession; and (3) interviews with 44 directors of state TANF programs to determine their state's response.

"An important question" noted by the authors at the outset "is whether the response of the nation's safety net program in general and the TANF program in particular was commensurate with the challenge posed by the huge level of unemployment during and following the Great Recession."

Some Results of the TANF Study

Haskins, Albert, and Howard arrived at a number of conclusions from the TANF/AFDC study, including:

  • TANF rolls increased more in the 2001 recession and the 2007 Great Recession than did AFDC during previous, pre-welfare reform (1996) recessions.
  • The increase in TANF rolls was greater during the period of rising unemployment in each state, which did not coincide exactly with the dates of the Great Recession, than during the official recession period nationally.
  • The "nation's safety net as a whole performed well during the Great Recession and prevented millions of people from falling into poverty."

"The nation experienced 51 different recessions and 51 different responses by the TANF program to the recession,” they write. "But the key point is that measuring the rise of the TANF caseload in response to the unique increase in unemployment in each state reveals TANF to have been more responsive to the recession."

Some Results of the Single Mothers Study

  • Compared with the 1990 recession before welfare reform, "single mothers were less likely to receive benefits from the TANF program during the 2001 and 2007 recessions."
  • Single mothers were more likely to receive other "safety net" help such as Unemployment Compensation, Supplemental Nutrition Assistance Program (formerly food stamps), Supplemental Security Income, the Earned Income Tax Credit, and child care, school lunch and breakfast, and other benefits for their children.
  • In all the 1990, 2001, and 2007 recessions, "single mothers took action on their own" by finding jobs, living with family, and other ways to "weather the recession."
  • Based on income, "poverty among single mothers and their children was lower during the Great Recession than during the recession of 1990."

Given the array of available benefits, the authors conclude that:

a mother with two children earning even as little as $11,000 per year could and still can escape poverty, as measured by income that includes non-cash benefits and tax credits, because of the generosity of these benefits. In our view, the combination of strong work requirements and generous work support benefits is a reasonable policy, despite the fact that fewer mothers receive TANF now than in the past.

Some Results of the TANF Directors Study

"Arguably the people who know the most about the goals and operation of state TANF programs and how the programs responded to the recession are the state TANF directors," write Haskins, Albert, and Howard. "They were, after all, the point persons for state TANF programs before and during the Great Recession. Interviews with TANF directors can provide an insider's view of the TANF issues that we have so far analyzed from the outside." Some of their conclusions from these interviews include:

  • Most states did not struggle to pay for growing TANF rolls during the Great Recession.
  • Most state directors considered their state's response to the recession "as adequate or better."
  • The directors had suggestions for improving the TANF program, including having more flexibility in work participation rates, gaining access to the Contingency Fund, and placing greater emphasis on job training.

Some Policy Recommendations

Although the authors believe that the TANF program worked well, especially in conjunction with other safety net programs, they suggest some potential reforms:

  • TANF allows vocational training to count toward states fulfilling their work requirement, but only a maximum of 30 percent of the work requirement can be fulfilled by TANF recipients in education or training. In times of high unemployment, Congress could raise the percentage limit from 30 to 40 or even 50 percent when unemployment reaches some specified level in the state, given that most experts believe the unemployed should expand their skills through job training during recessions.
  • Congress should consider changing the 12-week limit on job search during periods of high unemployment to as much as six months, given that the average period of search before finding a job increases sharply during periods of high unemployment.

Download and read the full report for complete methodology, analysis, and data.

Authors

  • Fred Dews
     
 
 




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Who says progressives and conservatives can’t compromise?


Americans often think of our country as being one of great opportunity – where anyone can rise from very modest circumstances, if they work hard and make good choices. We believe that often remains true.

But, for children and youth growing up in poverty, such upward mobility in America is too rare. Indeed, just 30 percent of those growing up in poverty make it to middle class or higher as adults. Though we’ve made progress in reducing poverty over the past several decades, our poverty rates are still too high and our rate of economic advancement for poor children has been stuck for decades. That is an embarrassment for a nation that prides itself on everyone having a shot at the American Dream.

What can we do to reduce poverty and increase economic mobility? In our polarized and poisoned political atmosphere, it is hard to reach consensus on policy efforts. Both progressives and conservatives want lower poverty; but progressives want more public spending programs to improve opportunity and security for the poor, while conservatives generally argue for more responsibility from them before providing more help.

Even so, progressives and conservatives might not be as far apart as these stereotypes suggest. The two of us—one a conservative Republican and the other a progressive Democrat—were recently part of an ideologically balanced group of 15 scholars brought together by the American Enterprise Institute and the Brookings Institution. Our charge was to generate a report with policy proposals to reduce poverty and increase upward mobility. An additional goal was simply to see whether we could arrive at consensus among ourselves, and bridge the ideological divide that has so paralyzed our political leaders.

Together we decided that the most important issues facing poor Americans and their children are family, education and work. We had to listen to each other’s perspectives on these issues, and be open to others’ truths. We also agreed to be mindful of the research evidence on these topics. In the end, we managed to generate a set of policy proposals we all find compelling.

To begin with, the progressives among us had to acknowledge that marriage is a positive family outcome that reduces poverty and raises upward mobility in America. The evidence is clear: stable two-parent families have positive impacts on children’s success, and in America marriage is the strongest predictor of such stability. Therefore marriage should be promoted as the norm in America, along with responsible and delayed child-bearing.

At the same time, the conservatives among us had to acknowledge that investing more resources in the skills and employability of poor adults and children is crucial if we want them to have higher incomes over time. Indeed, stable families are hard to maintain when the parents – including both the custodial mothers and the (often) non-custodial fathers – struggle to maintain employment and earn enough to support their families. Investing in proven, cost-effective, education and training programs such as high-quality preschool and training for jobs in high-growth economic sectors can improve the skills and employability of kids from poor families and lift them out of poverty through work.

Another important compromise was that progressives acknowledged that expecting and even requiring adults on public assistance to work can reduce poverty, as we learned in the 1990s from welfare reform; programs today like Disability Insurance, among others, need reforms to encourage more work. And reforms that encourage innovation and accountability would make our public education programs for the poor more effective at all levels. We need more choice in public K-12 education (through charter schools) and a stronger emphasis on developing and retaining effective teachers, while basing our state subsidies to higher education institutions more heavily on graduation rates, employment, and earnings of their graduates.

Conservatives also had to acknowledge that requiring the poor to work only makes sense when work is available to them. In periods or places with weak labor markets, we might need to create jobs for some by subsidizing their employment in either the private or public sector (as we did during the Great Recession). We agreed that no one should be dropped from the benefit rolls unless they have been offered a suitable work activity and rejected it. And we also need to “make work pay” for those who remain unskilled or can find only low-wage jobs – by expanding the Earned Income Tax Credit (especially for adults without custody of children) and modestly raising the minimum wage.

We also all agreed on other topics. For instance, work-based learning—in the form of paid apprenticeships and other models of high-quality career and technical education—can play an important role in raising both skills and work experience among poor youth and adults.  And, if we raise public spending for the poor, we need to pay for it—and not increase federal deficits. We all agree that reducing certain tax deductions for high-income families and making our retirement programs more progressive are good ways to finance our proposals.

As our report demonstrates, it is possible for progressives and conservatives to bridge their differences and reach compromises to generate a set of policies that will reduce poverty and improve upward mobility. Can Congress and the President do the same?

Editor's Note: this piece first appeared in Inside Sources.

Downloads

Publication: Inside Sources
      
 
 




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Money for nothing: Why a universal basic income is a step too far


The idea of a universal basic income (UBI) is certainly an intriguing one, and has been gaining traction. Swiss voters just turned it down. But it is still alive in Finland, in the Netherlands, in Alaska, in Oakland, CA, and in parts of Canada. 

Advocates of a UBI include Charles Murray on the right and Anthony Atkinson on the left. This surprising alliance alone makes it interesting, and it is a reasonable response to a growing pool of Americans made jobless by the march of technology and a safety net that is overly complex and bureaucratic. A comprehensive and excellent analysis in The Economist points out that while fears about technological unemployment have previously proved misleading, “the past is not always a good guide to the future.”

Hurting the poor

Robert Greenstein argues, however, that a UBI would actually hurt the poor by reallocating support up the income scale. His logic is inescapable: either we have to spend additional trillions providing income grants to all Americans or we have to limit assistance to those who need it most. 

One option is to provide unconditional payments along the lines of a UBI, but to phase it out as income rises. Libertarians like this approach since it gets rid of bureaucracies and leaves the poor free to spend the money on whatever they choose, rather than providing specific funds for particular needs. Liberals fear that such unconditional assistance would be unpopular and would be an easy target for elimination in the face of budget pressures. Right now most of our social programs are conditional. With the exception of the aged and the disabled, assistance is tied to work or to the consumption of necessities such as food, housing, or medical care, and our two largest means-tested programs are Food Stamps and the Earned Income Tax Credit.

The case for paternalism

Liberals have been less willing to openly acknowledge that a little paternalism in social policy may not be such a bad thing. In fact, progressives and libertarians alike are loath to admit that many of the poor and jobless are lacking more than just cash. They may be addicted to drugs or alcohol, suffer from mental health issues, have criminal records, or have difficulty functioning in a complex society. Money may be needed but money by itself does not cure such ills. 

A humane and wealthy society should provide the disadvantaged with adequate services and support. But there is nothing wrong with making assistance conditional on individuals fulfilling some obligation whether it is work, training, getting treatment, or living in a supportive but supervised environment.

In the end, the biggest problem with a universal basic income may not be its costs or its distributive implications, but the flawed assumption that money cures all ills.  

Image Source: © Tom Polansek / Reuters