Report on a Policy Framework for Achieving Sustainable Development Goals 1, 8, and 10

Introduction and Methodology

A recent evaluation by the Urban Institute analyzed a comprehensive policy package developed by Milwaukee’s Community Advocates Public Policy Institute. The objective was to assess the potential for a radical reduction in poverty, a direct target of Sustainable Development Goal 1 (No Poverty). The analysis utilized the Transfer Income Model, version 3 (TRIM3), a detailed microsimulation model that simulates major U.S. tax and transfer programs. The findings indicate that the proposed policies could significantly advance several SDGs, primarily SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Policy Components and SDG Alignment

The policy package consists of seven integrated components, each designed to address specific drivers of poverty and inequality, aligning with multiple SDG targets.

1. Transitional Jobs Program: Create employment for unemployed and underemployed individuals, directly supporting SDG 8 by promoting full and productive employment and decent work for all.
2. Minimum Wage Increase: Raise the minimum wage to $13.75 per hour, contributing to SDG 1 by ensuring adequate income and SDG 8 by promoting fair wages.
3. Expanded Earned Income Tax Credit: Substantially increase tax credits for workers with and without children, a key mechanism for achieving SDG 10 by reducing income inequality.
4. Expanded Child Tax Credit: Increase the credit to $3,000 or $3,600 per child and make it fully refundable, directly targeting child poverty in line with SDG 1.
5. Childcare Purchasing Accounts: Establish accounts to cover childcare costs, supporting SDG 5 (Gender Equality) by reducing the caregiving burden that disproportionately affects women and SDG 8 by enabling parents to participate in the workforce.
6. Increased Supplemental Security Income (SSI): Raise annual benefits and remove restrictive asset tests, providing a robust social protection floor for persons with disabilities and the elderly, as called for in SDG 1 and SDG 10.
7. Increased Social Security Benefits: Establish a higher minimum benefit, ensuring income security for older persons and contributing to the reduction of poverty and inequality among vulnerable populations (SDG 1, SDG 10).

Projected Impacts on SDG 1: No Poverty

The Urban Institute’s simulation projects a transformative impact on poverty levels in the United States. The full implementation of the seven-policy package would represent a significant leap toward achieving SDG 1.

• The national poverty rate, as measured by the Supplemental Poverty Measure, would fall from a baseline of 11.4% to 3.1%.
• This represents a reduction of over 70% in the number of people experiencing poverty.
• The policies would collectively lift approximately three-quarters of the low-income population above the poverty line.

Geographic Impact Analysis

The model provides projections of poverty reduction at the national, state, and local levels, demonstrating the scalable impact of the policy framework.

National Level

• Of the nearly 37 million people living below the poverty line nationwide, an estimated 27 million would see their incomes rise above the poverty threshold.

State Level (Wisconsin)

• In Wisconsin, the number of people living in poverty would decrease significantly, with 322,000 of the 434,000 individuals below the poverty line being lifted out.

Local Level (Milwaukee Area)

• The number of people below the poverty threshold would decline from 134,000 to 27,000, a reduction of 107,000 individuals.
• The number of people in near-poverty (between 100% and 150% of the poverty threshold) would decline by 231,000.

Contribution to SDG 10: Reduced Inequalities

The policy package is projected to not only reduce poverty but also to significantly lessen economic inequality, a core target of SDG 10. By increasing the resources available to the lowest earners and most vulnerable populations, the policies would create a more equitable income distribution. In the Milwaukee area, for instance, the number of individuals with incomes above 200% of the poverty line is projected to increase by 308,000, indicating broad-based economic uplift and a reduction in the gap between low-income and middle-income households.

Conclusion

The analysis demonstrates that a coordinated, work-based policy package can achieve an unprecedented reduction in poverty and material hardship in the United States. The framework offers a clear pathway for making substantial progress on Sustainable Development Goals 1, 8, and 10. While the estimated annual cost of $800 billion is significant, the report frames it as a strategic investment that would dramatically reduce poverty for people of all ages, races, and backgrounds, thereby fulfilling a core objective of the 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

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

The article primarily addresses issues related to poverty, employment, and social welfare, which directly connect to several Sustainable Development Goals (SDGs). The core focus is on a policy package designed to radically reduce poverty in the United States.

• SDG 1: No Poverty – This is the most central SDG to the article. The entire text is dedicated to evaluating a set of policies aimed at lifting “roughly three-quarters of low-income people above the poverty line” and reducing the overall poverty rate from 11.4% to 3.1%.
• SDG 8: Decent Work and Economic Growth – The article connects poverty reduction with employment and fair wages. Two of the seven policies listed are directly related to this goal: creating a “transitional jobs program to provide work for unemployed and underemployed people” and increasing the “minimum wage to $13.75 per hour.”
• SDG 10: Reduced Inequalities – By targeting low-income individuals and vulnerable groups, the policy package aims to reduce economic inequality. Policies such as expanding tax credits, increasing Supplemental Security Income (SSI), and raising Social Security benefits are designed to redistribute resources and provide a stronger social safety net, thereby reducing the gap between the wealthy and the poor. The article notes the plan would result in “an unprecedented reduction in material hardship in the United States. Poverty would fall dramatically for people of all ages, races, and backgrounds.”

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

Based on the policies and outcomes discussed, several specific SDG targets can be identified:

• 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 finding is that the proposed policy package “would reduce poverty from 11.4 percent to 3.1 percent,” which represents a reduction of “over 70 percent,” far exceeding the target of a 50% reduction.
• 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 details several such measures: expanding the earned income tax credit, expanding the child tax credit, creating childcare purchasing accounts, increasing Supplemental Security Income (SSI) benefits, and increasing Social Security benefits. These policies constitute a comprehensive social protection system.
• 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 proposal to “create a transitional jobs program to provide work for unemployed and underemployed people” directly addresses the goal of achieving full and productive employment. The policy to “increase the minimum wage to $13.75 per hour” is a direct measure to ensure decent work and fairer pay.
• Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The entire seven-point plan is a perfect example of this target in action. It combines fiscal policies (tax credits), wage policies (minimum wage increase), and social protection policies (SSI, Social Security, childcare) to achieve a more equitable distribution of income and reduce poverty.

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

Yes, the article provides several explicit quantitative indicators used to measure the potential impact of the policies.

• Indicator 1.2.1: Proportion of population living below the national poverty line. The article uses this as its primary metric, stating the baseline poverty rate is 11.4% and the projected rate after the policies is 3.1%. The graphs visually represent this change.
• Absolute number of people in poverty: While not an official SDG indicator, the article provides this data to measure progress. It states that in the Milwaukee area, the number of people below the poverty threshold would decline by 107,000. For Wisconsin, 322,000 people would be lifted out of poverty. Nationally, “nearly 27 million would move into a level over the poverty line.”
• Social protection benefit levels: The article provides specific monetary values that serve as indicators for the strength of the social protection floor (Target 1.3). It mentions increasing Supplemental Security Income (SSI) benefits to “$21,245 per year” and Social Security benefits to a minimum of “$23,066 per year.”
• Minimum wage level: As an indicator for decent work (Target 8.5), the article specifies the proposed new minimum wage: “$13.75 per hour.”
• Number of people in different income brackets relative to the poverty line: The chart for the Milwaukee area shows the number of people at four levels: below poverty, 100-150% of poverty, 150-200% of poverty, and over 200% of poverty. This data serves as an indicator for Target 10.4, showing a reduction in the number of people in lower-income brackets and an increase in higher ones (e.g., the number with incomes above 200% of the poverty line would increase by 308,000).

4. Table of SDGs, Targets, and Indicators

Source: urbanmilwaukee.com