Positive results from guaranteed income

Opinion editor's note: Editorials represent the opinions of the Star Tribune Editorial Board, which operates independently from the newsroom.

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St. Paul resident Lucille O'Quinn said the city's guaranteed income program gave her confidence that she could meet her family's monthly financial obligations.

"It helped me go from survival mode to feeling like my family is going to be OK, no matter what," she is quoted as saying in a news release from the city. "The sense of relief is real. It shows that government really can make a difference in our lives."

The O'Quinns are one of 150 lower-income families who received $500 per month for 18 months (October 2020 to April 2022) through the city's People's Prosperity Pilot. The program was launched by Mayor Melvin Carter and the city in 2020 during the height of the COVID-19 pandemic. Other participants have shared success stories with the Star Tribune, reporting that the money was used for rent, groceries and winter clothing for kids.

A recent study of the program mostly affirmed those families' experiences. The Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania found that the pilot resulted in positive trends in employment, indicators of well-being and quality of life, and improved physical and mental health.

The results from St. Paul and those from the first city pilot in Stockton, Calif., make a strong case for government to use cash payments as a poverty fighting tool in the future — perhaps even replacing some current programs that specify how funds may be spent.

Participants in St. Paul's program had incomes at or below 300% of the federal poverty level, and they had to demonstrate the economic impact that the pandemic had on them. More than 80% of families identify as people of color, and nearly half live on the city's East Side.

Researchers found that the number of people employed increased from 49% at the beginning of the pilot to 63% six months after the program ended. The report stated that the trend "suggests both a potential resurgence of job opportunities following the pandemic, as well as the potential role of GI [guaranteed income] in fostering employment-seeking actions." There was also a 7% increase in participants transitioning to better-quality housing.

Carter told an editorial writer that the results dispel the notion that if you give poor people cash, they'll just spend it on things like drugs. "We provided debit cards so we could track the spending; we know that most of the payments were going to things like groceries, rent and other necessities."

Carter said the data show that lower-income poor people are among the hardest working in America and that he was especially heartened by the improved employment figures. "Folks said they used the money to fix their truck to get to work or bought a suit for a job interview … or that the extra cash allowed them to take time off a part-time job to apply for a full-time job," he said.

Still, some observers remain unconvinced.

"Instead of fostering self-reliance and individual responsibility, guaranteed income programs create a culture of dependency on government handouts, stifling personal initiative and economic growth," Minnesota Republican Party Executive Director Anna Mathews said in a statement.

"Furthermore, implementing guaranteed income would place an unsustainable burden on taxpayers and hinder economic prosperity in our great city. … In short, guaranteed income is not the answer; it's time to explore more effective, market-driven solutions to address St Paul's challenges."

In response, Carter said he welcomed thoughts from critics about any better, well-researched anti-poverty efforts. He noted that he doesn't plan to propose that the city fully fund a similar or expanded program. Rather, he is hoping that the results from St. Paul and other cities can be used to advocate for cash payments from other government, nonprofit and private sources.

St. Paul's pilot is affiliated with Mayors for a Guaranteed Income, a coalition of 125 mayors and growing, of which Carter is a co-chair. Building upon the early success of the pilots, Minnesota recently passed the nation's largest statewide expansion of the child tax credit.

When the income idea was first proposed in St. Paul, the Star Tribune Editorial Board called it a proposal worth exploring. The new data now show that guaranteed income programs have the potential to truly make a difference in helping lift families out of poverty.