Why is Guaranteed Basic Income a Women's Issue?
: The Piloting of a Guaranteed Income Program in Cincinnati
Annah Saladonis
Spring 2023 BSUS Capstone
Photo by Carley Chastain
​Meet Guaranteed Basic Income For Women
In Cincinnati, women, especially Black women, are amongst the poorest group with the least agency. The largest demographic living in poverty in Hamilton County are females 18-24, followed by females 25-34. A Basic Income Program would allow women better opportunities and choices. For example, women could further their education, stay home and raise a family, or leave a toxic/unsafe job or relationship. By providing an individual income, with no strings attached, allows the community to explore its potential to reduce gender inequities and allow economic autonomy.
The Facts
24.3% of the Cincinnati population lives below the poverty line. The national average is 12.8%. The largest demographic living in poverty are females 18-24, and specifically Black females at 23.6%.
Lower Price Hill/Queensgate, Winton Hills, and South Cumminsville/Millvale are among the Cincinnati neighborhoods with the most extreme poverty rates for women.
In these five neighborhoods, the annual income levels are highest among $7,500 to $35,000. The average annual income in Cincinnati for men and women is $56,000. 250% of the federal poverty level would be $33,975 for a household of three.
Income is seen to be the most important social determinant of health. Basic income support has a positive impact on birthing outcomes, exemplified by the state of Alaska. Through the Alaska Permanent Fund, the state has provided its residents with income transfers since the late 1970s. Research on the health impacts of these income boosts reported increased birth weight of 38.8% for participants, and a 14% decreased likelihood of low birth weight. GBI projects purposefully aim at helping vulnerable populations, specifically birthing persons as heads of households. The hope is that a GBI project would reduce health inequities. Income support will have a significant positive on birthing outcomes.
Avoiding the Cliff Effect
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It is important that GBI projects remain accompanied by other policies designed to support redistribution of income and wealth, so as to avoid that GBI leads to the dismantling of other aspects of the welfare state. This includes benefits waivers. The goal is to pull people out of poverty with an income boost, but not take away essential services they would still need, such as SNAP benefits or medicaid. When a family’s household income increases above the Federal Poverty Guidelines Threshold, even by $2 an hour, they lose eligibility for public assistance programs.
Photo by Circles NWA
3 Proposed Pilot Options
Cincinnati
Possibilties:
Provide 100 participants $500/month for 18 months
total cost: $900k
Woman from Queensgate
Able to buy hygiene products and make grocery store purchases for her family. She spends about $80/month on hygiene products such as toothpaste and diapers. She spends about $150/month on groceries for her and her two children. She saves about $270/month over the 18 month time period for a loan repayment.
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"Help doesn't come often, and I appreciate being able to feed my family" -Lekandra, participant in Shreveport Universal Basic Income Program
Provide 200 participants $500/month for 12 months
total cost: $1.2M
Woman from South Cumminsville
Able to afford transportation costs. She can use about $60/month to pay for the metro 5 days a week to get to work. She has a chronic medical illness and can save $200/month to pay for costly medical expenses over the 12 month period.
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"I took care of bills, I got groceries, paid car insurance, I did whatever I could to make that money stretch" -Qristyl Frazier, participant in St. Louis Universal Basic Income Program
Provide 100 participants $1,000/month for 12 months
total cost: $1.2M
Woman from Winton Hills
Able to pay utility bills for her apartment. She spends $150/month on utilities. She has decided to go back to school at the University of Cincinnati and saves $700/month over the 12 month time period to pay her remaining tuition fees.
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"It's a really big help for me because I am a mother of two kids, and I use that money to basically get all of their necessities for the month. So that's a really big help with me being a single mother...I feel like in a year I'll be in a more stable place when it comes to my finances and my home"-Symphony Lee, participant in New Orleans Universal Basic Income Program
Funding and Partners
Many pilots of a Guaranteed Basic Income Programs around the United States are backed by mayors and city councils. In Cincinnati, Councilman Reggie Harris is championing the pilot of this program. Many are backed by nonprofits and funded through private donations. The American Rescue Plan Act funds many income programs across the United States after the Covid-19 pandemic exacerbated structural inequities related to income. It is recommended that funding comes from a combination of taxes such as progressive income, wealth, or carbon taxes. The Urban League of Greater Southwestern Ohio is leading a collaborative community effort with All-In Cincinnati, Queen’s Village, and the City of Cincinnati to pilot a guaranteed income in the city proper.
Target Eligibility
Winton Hills, Lower Price Hill, Queensgate, South Cumminsville, and Millave
Households with a female head of household
Making within 250% of the federal poverty level
Pregnant or at least have one child
Benefits of GBI for Women
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Resources to pay public or private childcare providers
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Recognition for unpaid labor (care work)
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Help ensure women's access to adequate housing options
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Improve the health and well-being of a mother and child (reduce infant mortality rates)
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Improve mental health and reduce anxiety around bill-paying, grocery shopping, health services, etc.
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Change community narrative around poverty
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Help women escape a toxic or unsafe situation that is tied to money
Photos taken from Pinterest
Pipe Dream Or Proactive Policy?
Criticisms around this program are about the implications it would have on the economy. Critics say that it incentivizes people to not work, however, research will show this is not the case. A study of the Iranian cash transfer program found no effect on employment levels, and actually found that workers in the service industry had worked more hours than they had before. Because a fixed income gives people money to fall back on, they have more liberty to search for a job that they really want, and that is best suited for them. Also, because a program like this does not provide enough money to pay for all expenses, it acts as more of a supplemental income, rather than replacing work all together.
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The Fourth Industrial Revolution
A businessman by the name of Andrew Yang, who was a candidate in the 2020 presidential election, centered his campaign on a Universal Basic Income. If put in place, this GBI or "Freedom Dividend" would give every American adult $1,000 a month, no questions asked. He has tied the need for a policy like this to a threat in automation in what he calls the "Fourth Industrial Revolution." Advancements in artificial intelligence will result in jobs being lost at a much higher rate than they can be replaced. Many low-skill, working class jobs will be replaced. An example Yang gives is that driverless vehicles will make truck driving jobs essentially obsolete. A Guaranteed Basic Income could be a way to potentially offset the harm of job loss and provide people with a safety net as they search for new jobs or learn new skills.
Changing the Narrative Around Poverty
A small amount of money can lead to a massive change in a woman's life. A growing body of work shows that guaranteed income works. It pulls people out of poverty and it improves health outcomes. The notion that poor people are lazy and unmotivated to work is false and it is a stigma that must be left in the past. Poverty is not a choice, and it is time that the systems that have failed us start to repair the damage that has created generational poverty. The hope is that a GBI program for women in Cincinnati, would be the first steps in giving economic autonomy to the group with the least agency.
"If empirical evidence ruled the world, guaranteed income would be available to every poor person in America, and many of those people would no longer be poor" -Megan Greenwell, The Washington Post