Here's a rather novel idea out of New York City: Mayor Michael Bloomberg suggested recently that low-income New Yorkers who make good choices--like staying in school or visiting a doctor on a routine basis--should be rewarded with cash payments. The rewards would incentivize continued proactive behavior while helping individuals and families break out of the cycle of poverty that traps people for generations (USA Today, September 22, 2006).
The notion has been successful in countires outside the United States. The World Bank has used the tactic in Mexico and Brazil with great succcess.
Bloomberg propsed the innovative action after receiving a report from the city's anti-poverty commisssion. the commission was led by Time Warner CEO, Richard Parsons and Geoffrey Canada, preident of the Harlem Children's Zone.
Parents who take seriously getting their children to school and the doctor's office help the entire city, while lifting their families. Linking such decisions to financial assistance would have a double impact on the poor.
Bloomberg's plan would not use public funds. The cash rewards would be raised from private sources. The initial goal would be to put together a $24 million fund to reward and encourage citizens to pursue education and health care for themselves and their children.
The plan to reward personal and parental initiative drew positive reactions from a number of New York City officials.
Interesting idea.
What's your take on it?
9 comments:
My husband's AFLAC policy has an incentive for routine check-ups too. Basically, we get our copay and then some back for providing proof that one of us went to our annual check-up. It's nice.
I think Bloomberg is EXTREMELY wise to be using private monies for this project - lest he be torn to shreds by those who don't share his view.
I think it's a great idea and am interested in hearing some outcome measures after it's been implemented for a decent time frame.
If it works I suppose it is good. It's too bad that one has to be bribed to do the right thing however. That is one of the reasons for poverty.
It's too bad that one has to be bribed to do the right thing however. That is one of the reasons for poverty.
Does that mean, it's too bad we live in a broken world, where we all make mistakes, and bad choices, and they often come back around to bite us?
In that case, I guess that would be one of the reasons for poverty. Also one of the reasons for addiction, weight problems, broken families, war...
Or does it mean, it's too bad that those people can't make the right decisions in the first place, otherwise we wouldn't have to give them our hard-earned cash?
In that case, He who is without sin...
Just wondering; I've always been told to give the benefit of the doubt...
Jim, thanks for your comment. The comments above yours reflect the extent to which many, if not most, people have no real understanding of the complexities and challenges associated with poverty and, more especially, generational poverty.
The comment made by Anonymous here assumes that the people in question have enjoyed all of the same advantages as he/she has.
This is a major part of the problem we face in making significant progress on breaking the cruel cycles accompanying poverty.
What an intriguing idea! It acknowledges that low-income people want to make good choices; they just need a extra boost from those who want to help find long-term solutions to poverty. Families and individuals who find themselves trapped in the cycle of poverty sometimes can't make enough "good choices" to escape their fate on their own. Those of us who have not been there sometimes forget that we didn't earn our place in middle class society. For the most part we were born into it, and all the advantages that go with it.
I am sure you all are correct but just for the record I wasn't born in middle class society. We didn't have indoor plumbing until I graduated from high school and nobody paid me to graduate from Columbia University. Having said that(a popular phrase) I think you are correct:)
Well, Ann, there's also the idea that a lot of times, for low-income folks, a good choice, i.e. going to the dr/dentist for routine/preventive care, = having to shave from food/rent/other necessities. With an incentive plan like this, it can help soften that harsh gap.
And anonymous, your last line implies something along the lines of "social welfare programs perpetuate poverty." My recent post on barriers to economic independence suggests otherwise, at least here in CO. Sometimes, life hands people a raw deal such as a special needs child or domestic violence, to name very few of the reasons, which can begin the cycle of poverty for that family - and has nothing to do with whether a family wants to make a good choice with or without a bribe, but has everything to do with whether they perceive that they can make said choice.
Larry -- you've mentioned the Earned Income Tax Credit a few times. Mind explaining that a bit more? Is that a sort of watered-down national version of this?
Anonymous, 8:04 p.m., good question. The Earned Income Credit program comes from the IRS. Working people who don't gross enough wages to owe taxes can apply for the Earned Income Credit which is a reward for working. The levels are tied to family size and workers have to file a EIC form with the IRS to receive the award, but it is well worth their time. So, it does work something like the NYC effort.
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