Cliff Effect Pilot
The Cliff Effect happens when a working family or individual tries to increase their income, and they lose so much in public benefits that their annual income decreases. It is a structural flaw in our welfare systems, and traps people in poverty.
Right now, America's welfare programs trap families in poverty through the Cliff Effect.
Wage increases create a loss in eligibility for public assistance supports like food, childcare, and housing, but not enough to afford these on their own. The result is that an increase in wages makes a family worse off than before the wage increase.
What does that look like: A worker can increase their wage by a few dollars an hour, or even 10 cents an hour, and lose so much in public benefits that their overall income decreases and they can no longer afford basic necessities.
Right now, America's welfare programs trap families in poverty through the Cliff Effect.
Wage increases create a loss in eligibility for public assistance supports like food, childcare, and housing, but not enough to afford these on their own. The result is that an increase in wages makes a family worse off than before the wage increase.
What does that look like: A worker can increase their wage by a few dollars an hour, or even 10 cents an hour, and lose so much in public benefits that their overall income decreases.
The benefits cliff harms families:
- “Working harder, but getting poorer”
- Inhibits career advancement
- Perpetuates economic instability
- Detrimental to economic growth
The Benefits Cliff is the single greatest barrier for low-income families, estimated to be impacting 22.5% of Americans (Carey, 2018).
Who will be targeted by the Cliff Effect Program?
According to the US Census American Community Survey 1 out of 4 Black and 1 out of 3 Hispanic residents in Massachusetts rely on SNAP benefits compared to 1 in 8 white residents. Our program will target Black and Latino residents.
One of the most insidious effects of systemic racism and generational inequity is the occupational segregation of women, particularly women of color—often trapped in low-paying jobs with little range for career advancement. A prime example is healthcare workers who are crucial to our healthcare infrastructure but are frequently undervalued. With a significant proportion of nursing assistants and home health aides either living in poverty or dangerously close to it, the cycle of poverty continues.
The Benefits Cliff is estimated to affect 22.5% of Americans.
What percent of those individuals are nonwhite / could replace with a collection of stats around disproportionate burden on nonwhite families
Perhaps some demographic stats?
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Perhaps more demographic stats?
Or involved in the explanation of the Cliff Effect?
Or could use as the charts to show the decrease in income when your wage increases but lose benefits.