Cash Alone Won’t End Poverty – The Dispatch

Report on Strategies for Achieving Sustainable Development Goal 1: No Poverty in the United States

Executive Summary: Aligning Anti-Poverty Efforts with the 2030 Agenda

In the United States, nearly 36 million people live below the poverty line, a reality that directly contravenes the objectives of Sustainable Development Goal 1 (SDG 1: No Poverty). While direct cash payments have been proposed as a solution, recent evidence suggests they are insufficient for creating long-term, sustainable pathways out of poverty. This report analyzes the limitations of cash-only approaches and outlines a comprehensive strategy that aligns with multiple SDGs, including SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), SDG 5 (Gender Equality), and SDG 10 (Reduced Inequalities). A sustainable anti-poverty agenda must invest in human capital, family stability, and holistic support systems to empower individuals to achieve economic self-sufficiency.

Analysis of Direct Cash Transfers and Their Impact on Sustainable Development

Recent guaranteed income experiments have yielded limited results in advancing long-term well-being, suggesting that cash alone does not address the systemic barriers associated with poverty.

• Employment and Health Outcomes: In Texas and Illinois, experiments providing low-income individuals with $1,000 a month for three years did not produce significant changes in employment, health, or parenting circumstances.
• Child and Maternal Well-being: The Baby’s First Years experiment, which provided new mothers with $333 a month, failed to show discernible improvements in economic hardship, psychological distress, relationship quality, or child development.

While cash transfers can serve as a critical safety net for acute financial crises, aligning with immediate targets of SDG 1, they do not constitute a comprehensive solution for fostering the capabilities needed for long-term economic flourishing.

A Multi-Pillar Strategy for Sustainable Poverty Reduction

Eradicating poverty requires a multi-faceted approach that invests in people and families, helping them overcome barriers to economic participation. This strategy is built on three core pillars directly linked to the Sustainable Development Goals.

Pillar 1: Advancing SDG 4 (Quality Education) and SDG 8 (Decent Work)

The most reliable path to economic security is through skills development that leads to stable employment. Educational attainment is a primary determinant of poverty status.

• Nearly one-third of adults without a high school diploma live in poverty.
• Only 6 percent of college graduates live in poverty.

To bridge this gap, targeted interventions are needed that go beyond financial aid. The following models have proven effective in promoting SDG 4 and SDG 8:

1. Comprehensive Student Support: Programs like CUNY’s ASAP offer tuition waivers, transit access, and dedicated academic and career advising, leading to improved student outcomes and higher earnings.
2. Flexible Adult Education: Institutions such as Goodwill’s Excel Centers provide flexible high school programs for adults, creating new pathways to educational attainment.
3. Sector-Based Workforce Training: Organizations like Year Up and Project QUEST combine technical and professional skills training with internships and job placement in high-demand sectors, directly linking education to decent work.

Pillar 2: Strengthening Families to Advance SDG 1 and SDG 5 (Gender Equality)

Family stability is a bedrock of economic security and is essential for breaking intergenerational cycles of poverty. Data reveals a significant link between family structure and poverty rates.

• Poverty rate in married-couple households: 8%
• Poverty rate in families led by single mothers: 24%

Achieving SDG 1 and SDG 5 requires addressing the underlying drivers of family instability. Key policy actions should include:

1. Expanding Economic Pathways: Creating more opportunities for stable, well-paying jobs for individuals without a college degree can foster the formation of more economically secure two-parent households.
2. Investing in Healthy Relationships: Supporting programs that provide skills-based education and coaching in communication, conflict resolution, and joint decision-making for low-income couples.
3. Reforming Institutional Barriers: Eliminating “marriage penalties” in tax and transfer systems that can penalize low-income couples for marrying, thereby strengthening institutions in line with SDG 16.

Pillar 3: Implementing Holistic Support Systems for SDG 10 (Reduced Inequalities)

The obstacles to escaping poverty are often multifaceted and interconnected, requiring integrated support. Holistic case management programs tailored to individual needs are crucial for reducing inequalities as outlined in SDG 10.

• The Padua Program Model: This program, run by Catholic Charities Fort Worth, provides individualized case management to address concurrent barriers such as housing instability, unemployment, and domestic abuse.
• Demonstrated Efficacy: A randomized controlled trial of the Padua program found that it led to significant improvements in stable housing and employment outcomes for participants.

Conclusion: An Integrated Agenda for Human Flourishing

While cash transfers can play a role in mitigating immediate hardship, a sustainable strategy for achieving SDG 1 in the United States must be more ambitious. Fighting the fundamental causes of poverty requires a comprehensive approach that advances people’s ability to provide for themselves and their families. By integrating efforts to achieve SDG 4 (Quality Education), SDG 8 (Decent Work), SDG 5 (Gender Equality), and SDG 10 (Reduced Inequalities), policymakers can create a framework that not only alleviates poverty but also promotes individual dignity and overall economic growth.

Analysis of the Article in Relation to Sustainable Development Goals

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty
   • The entire article is centered on the issue of poverty in the United States, directly mentioning that “nearly 36 million Americans still live below the poverty line.” It discusses various strategies to combat poverty, moving beyond simple cash transfers to more comprehensive solutions.
2. SDG 4: Quality Education
   • The article strongly links education to economic security, stating, “Nearly a third of adults without a high school diploma live in poverty, compared with just 6 percent of college graduates.” It highlights the importance of educational programs like CUNY’s ASAP and Goodwill’s Excel Centers in providing skills.
3. SDG 8: Decent Work and Economic Growth
   • A core argument in the article is that “the most reliable path to individual economic security is to obtain the skills that lead to stable jobs and adequate pay.” It promotes workforce training programs like Year Up and Project QUEST that help people secure employment and improve their earnings.
4. SDG 5: Gender Equality
   • The article points out the gendered dimension of poverty by highlighting the disparity in poverty rates between married-couple households and “families led by single mothers.” It also calls for investing in programs that prevent intimate partner violence, a key issue in gender equality.
5. SDG 10: Reduced Inequalities
   • The article addresses inequalities based on educational attainment, family structure, and income level. It discusses how the “current tax and transfer system too often penalizes low-income couples who marry,” advocating for the elimination of such “marriage penalties” to create a more equitable system.
6. SDG 11: Sustainable Cities and Communities
   • The text touches upon the issue of homelessness as a barrier to escaping poverty. It mentions that “emergency financial assistance can help prevent someone from falling into homelessness” and highlights programs like Padua that help individuals obtain “stable housing.”

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 1: No Poverty
   • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The article’s central theme is reducing the number of the “36 million Americans” living below the poverty line.
   • Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable. The article discusses cash transfers, tax systems, and income support programs for single-parent families as forms of social protection.
2. SDG 4: Quality Education
   • Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university. The article advocates for programs like CUNY’s ASAP for college students and flexible high schools for adults like Goodwill’s Excel Centers.
   • Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. This is directly addressed through the promotion of “sector-based workforce training programs, like Year Up and Project QUEST,” which provide skills in fields like IT, finance, and health care.
3. SDG 8: Decent Work and Economic Growth
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article’s goal of creating “pathways for men without a college degree to gain stable, well-paying jobs” and improving “employment outcomes” aligns with this target.
4. SDG 5: Gender Equality
   • Target 5.2: Eliminate all forms of violence against all women and girls in the public and private spheres. The article explicitly calls for “investing in programs that help low-income couples establish healthy relationships, including preventing intimate partner violence.”
5. SDG 10: Reduced Inequalities
   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex… or economic or other status. The article addresses the economic exclusion of specific groups, such as adults without a high school diploma and single mothers, and proposes solutions to improve their economic participation.
   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The recommendation to eliminate “marriage penalties” in the “country’s current tax and transfer system” is a direct call for fiscal policy reform to reduce inequality.
6. SDG 11: Sustainable Cities and Communities
   • Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services. The article identifies homelessness as a critical barrier and mentions programs that provide “emergency financial assistance” to prevent it and help individuals “obtain stable housing.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 1 (No Poverty)
   • Indicator 1.2.1: Proportion of population living below the national poverty line. The article explicitly cites this with the figure “nearly 36 million Americans still live below the poverty line” and notes that the “share of Americans living under the poverty line barely budged.”
   • Poverty rates by household type: The article provides specific data points: “poverty rates of 8 percent in married-couple households, versus 24 percent in families led by single mothers,” which can be used to track poverty across different demographics.
2. For SDG 4 (Quality Education)
   • Poverty rates by educational attainment: The article implies this indicator by stating, “Nearly a third of adults without a high school diploma live in poverty, compared with just 6 percent of college graduates.”
   • Graduation and completion rates: The success of programs like CUNY’s ASAP, which “improves student outcomes,” suggests that college graduation rates for low-income students are a key measure of progress.
3. For SDG 8 (Decent Work and Economic Growth)
   • Employment outcomes and earnings: The article mentions that programs like Padua “improved employment outcomes” and CUNY’s ASAP “raises earnings.” These are direct measures of progress towards decent work.
4. For SDG 5 (Gender Equality)
   • Prevalence of intimate partner violence: The call to invest in programs “preventing intimate partner violence” implies that the incidence rate of such violence is a key indicator to be monitored and reduced.
5. For SDG 10 (Reduced Inequalities)
   • Impact of fiscal policies on different household types: The existence of “marriage penalties” in the tax and transfer system is an indicator of policy-driven inequality. Their elimination would be a measure of progress.
6. For SDG 11 (Sustainable Cities and Communities)
   • Rates of homelessness and housing stability: The article’s focus on preventing homelessness and helping individuals “obtain stable housing” implies that the number of people experiencing homelessness and the number of people securing stable housing are critical indicators.

4. Table of SDGs, Targets, and Indicators

Source: thedispatch.com