The Problem
About 10% of Americans are chronically poor or near-poor, most of whom lack the skills to move up the economic ladder.
The Challenge
- Alleviate poverty
- Incentivize skill development
- Increase social mobility at lower-income levels
- Increase labor market participation
- All without raising taxes very much
The Proposal
Targeted Basic Income for a Better Future: $1000/month up to six years total for adults enrolled in postsecondary training and education programs, such as:
- College Classes
- Adult Education
- ESL Classes
- GED/HS Diploma Programs
- Job Readiness Training
- Vocational Training
- Internet Classes
- Modular Courses
- On-The-Job Training
- Apprenticeships
Requirements
- American citizens or eligible non-citizens between 18-62
- Approved institutions and programs only
- Minimum 20 hours a week participation
- Minimum one month participation at a time
- Periodic performance requirements
A registry would be compiled from existing regional and state agencies that oversee and accredit or approve postsecondary institutions and programs. Participation would include time allotted for homework, based on information from training and education providers. For instance, a standard college course generally involves about 3 hours of study time for every unit of credit, so taking 7 units of college coursework would be enough to qualify.
Performance requirements would vary according to the institution, class, or program. As a rule, one would be required to get a passing grade or certificate of participation confirming that at least 20 hours a week of class or training time had been satisfactorily completed during the period of review. Those not meeting performance requirements would have their BI suspended until they met performance requirements for the period they’ve already been paid, which they could do via completion of prior or different coursework/training.
Perks
This BI would not be means-tested, so recipients could work part- or full-time. Although the BI would replace federal student aid programs, state aid programs would not be affected.
Next: Doing the BI Numbers
References:
Kimberlin, Sara "The Influence of Government Benefits and Taxes on Rates of Chronic and Transient Poverty in the United States," Social Service Review 90, no. 2 (June 2016): 185-234. https://doi.org/10.1086/687306
Rank, Mark R “From Rags to Riches to Rags” http://www.nytimes.com/2014/04/20/opinion/sunday/from-rags-to-riches-to-rags.html?smid=pl-share&_r=3