Newark’s guaranteed income program set for review
Newark, N.J., is part of a growing push to establish a guaranteed basic income for people who need financial support during desperate times.
The city established an experimental guaranteed basic income program for its residents in 2021. Under the auspices of the Newark Movement for Economic Equity (NMEE), some 400 residents have each received $500 a month over the past two years.
The cash payments, which came with no pre-conditions about how they had to be spent, were designed to aid Newark families who faced housing or other financial problems.
Mayor Ras J. Baraka will host an event designed to look at NMEE’s impact this coming Tuesday, Oct. 24, at 7 p.m. at the New Jersey Performing Arts Center’s (NJPAC’s) Victoria Theater. The event will feature a roundtable discussion with NMEE recipients and Marc Levin, director of the documentary film “It’s Basic,” which features profiles of mayors from cities across the nation who have implemented guaranteed income policies.
The evening will include a screening of the documentary film and a discussion about the group Mayors for a Guaranteed Income (MGI), which is behind the nationwide push for steady cash payments for people in need.
The progressive nonprofit Economic Security Project reported that there are currently more than 100 guaranteed basic income programs in operation in cities across the United States. Newark has joined the MGI movement alongside cities like Trenton, Paterson, and Hoboken; Saint Paul and Minneapolis, Minn.; Birmingham, Montgomery, and Little Rock, Ala.; Los Angeles, Oakland, Compton, San Diego, Palm Springs, and San Francisco, Calif.; Atlanta, Ga.; Baltimore, Md.; and the New York-based cities of Hempstead, Rochester, Mount Vernon, and Ithaca.
“The idea behind a guaranteed income is that while most of the folks [who] are in the movement would also support raising the minimum wage and increasing folks’ salaries to match the cost of inflation, …[it] is recognizing that a lot of folks are just experiencing poverty,” said Sukhi Samra, executive director of MGI.
“Most of the folks who can work, do work. But there are also folks who are experiencing poverty, who are unable to work––whether those are folks who are disabled, the elderly, and the retired, or people who are doing the unseen labor of eldercare or childcare. We’re wanting to use guaranteed income as a tool to recognize the care work that folks do, which is most often done by women, but these are folks who don’t have an income floor. We think of this as supplementing rather than replacing; this would be one more way to add to the social safety net.”
Funds for necessities
More than 1,200 Newark residents had applied to take part in the NMEE program when it was initiated in 2021. To qualify, participants had to be housing-insecure and earn an income at or below 200% of the federal poverty line. Participants were randomly chosen.
In September 2022, Newark released statistics showing how NMEE basic income fund recipients were spending their cash infusions. The report said, “The majority of the funds were spent on necessities like food, household goods, and transportation”:
– 40% at retailers and discount superstores for things like food, clothes, household goods, and hygiene products.
– 26% at grocery stores.
– 10% on transportation costs like gas and car repair.
– 12% for housing and utilities
Other expenses included loan repayments, medical expenses, and tuition.
Particpant profiles included:
– 77.75% of participants are women, 21.25% men, and 0.5% non-binary.
– 82% of participants are single.
– Two-thirds of participants have children in the household.
– The average participant household size is three, with an average of two children.
– 81.50% of participants are non-Hispanic, a majority of whom are African American.
– 18.50% of participants identify as Hispanic.
– The average household income for participants is $8,749.
The “It’s Basic” documentary reminds viewers that, during the 1960s Civil Rights Movement, the Black Panther Party had called for “…the federal government…to give every man employment or a guaranteed income” in its Ten-Point Program to empower the Black community, and Martin Luther King Jr. was a strong advocate of a basic income to combat economic insecurity.
“We do know, anecdotally, that more often than not, people are using the guaranteed income to set themselves up for positions of future success,” Samra told the AmNews. “They know that the program is time-limited, so they use the funds to do things that will set them up for success in the long term. Whether that’s putting a downpayment on a house or paying down credit card debt or using that income floor to sign up for an internship that will help them get a better-paying job in the future, we’ve seen folks using that money to invest in themselves so that when the program is over, they’re in a better position than they were when the program started.”The October 24 “Guaranteed Income Works” event is free and open to the public. To attend, register at https://www.njpac.org/event/its-basic-documentary-premiere-with-mayor-ras-j-baraka/ or call 888-696-5722.
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