Are Work Requirements Good or Bad?

by Corey Burres | Jun 1, 2023

Are Work Requirements Good or Bad?

Key Points

The arguments around work requirements ignore the purpose of how our safety net services should work.
The public, in general, agree with the argument for work requirements because they see the system as a temporary solution.
We must reform the system so that we move people into opportunity and thriving.

As the federal government debates the debt ceiling and attempts to bring spending under control, one recurring topic is work requirements for adults on government benefits and safety net services. The argument is that implementing work requirements will encourage more people to leave welfare programs, which in turn would decrease spending on one of the biggest expenses in the federal budget.

However, the debate about work requirements should not, in my opinion, be connected to fiscal accountability. Instead, it should be linked to the central purpose of these services and the people needing them.

A look at work requirements

To understand these challenges we need to look at the differing opinions on work requirements. On one side you hear the argument that not requiring work for benefits like SNAP and Medicaid is a disincentive to work for those on benefits. In other words, people are staying on benefits longer than necessary because there is no benefit to getting off, and in many cases, it is more costly to get off.

On the other side, the argument requiring work is simply a way to save money which ultimately hurts the poor. The argument is people in need of food support and healthcare will not be able to work and thus will be forced off of services without work.

Both of these arguments ignore the full experience of those on safety net services. Therefore, I want to challenge us to set aside political talking points and have a real discussion on the issue. These arguments are fraught with finger-pointing and people assigning motivations to each other. The discussion around work requirements is important because it challenges us to ask, “What is the purpose of our welfare system?”

With The Alliance for Opportunity, we are crafting policies that will create a clear path to get off safety net services and into opportunity in Georgia.

Work requirements aren’t a bad idea

At the Georgia Center for Opportunity, we generally agree with the idea of work requirements, but not for the reasons political pundits throw around. We are not trying to “weed out bad actors” or trying to reduce government expenditures. Those outcomes may come to pass but they cannot and should not be the intent of such measures.

While there is a politicized debate currently raging, the idea of requiring work to continue to receive benefits is not new. FDR’s New Deal, the framework for our current safety net system, pushed for a system that helped those unable to work like children or disabled individuals. The expansion of such a system to cover the unemployed came later in the process and was designed to be a stopgap between employment.

As the system expanded even further, it became apparent the support should include systems to get people back into work—this led to job training and education programs.

That is where we are today and ultimately how we should be looking at the safety net system for those able to work. The system must be designed to ask, “How can we help you get back on your feet and be self-sustainable?” Not because you are only valuable if you work, but because you are a valuable member of society. This view of membership is probably why work requirements are very popular among the US population. We value and understand the importance of work.

The research on the value of work is expansive. It leads to positive outcomes for families, improved personal mental health, and deeper community value. It is what we should want for people. It is what we should build our services to provide people, not a paycheck but an opportunity.

The arguments against work requirements

The issue becomes more complex when you recognize the valid arguments against work requirements. One of these is that work requirements don’t increase work rates—they simply cut people off of needed services.

The argument is that these requirements add another stress level to people just trying to survive. This creates yet another hurdle for those already struggling to navigate a complex process. The result is people find a different means to survive or they simply give up. Obviously, no one wants to add to people’s burdens.

Rather than arguing against work requirements, these challenges highlight the flaws in our current system. The system is poorly designed and does not lead to the outcomes we want for people.

Work requirements are a good policy in a bad system

Policymakers are notoriously inept when it comes to policy reforms. Half-measures have resulted in a system that is not focused on outcomes. If the system were structured to reduce complexity and alleviate stress for those seeking job support, then a work requirement could be the positive encouragement it should be.

This is one reason we are working with other state think tanks on a One Door Model that would transform our safety net services and create a clear, supportive, and accessible path to work.

These types of policies are critical to ensure that we are helping those in need. They are also critical to ensure that we deliver dignity and hope as an outcome.

Utah’s ‘One Door’ Policy Shows the Way Forward on Safety-net Reforms

by Buzz Brockway | May 26, 2023

Georgia news, in the news, current events, Georgia happenings, GA happenings

Utah’s ‘One Door’ Policy Shows the Way Forward on Safety-net Reforms

By Buzz Brockway

The April unemployment report shows that job opportunities remain at historic highs across the country. In fact, the report came in better than expected at a 3.4% unemployment rate, exceeding expectations for the resilience and strength of the labor market.

In this environment, no work-capable person should be without a job. But the sad reality is that the very safety net system created to help people who are struggling is the same one contributing to keeping them mired in generational poverty. I’m talking about America’s social-safety net system.

As it stands, our nation’s welfare system is a fragmented hodgepodge of programs. The dozens of programs that make up “the system” have different and, at times, competing goals, inconsistent rules, and overlapping groups of recipients.

Read the full article here

Businesses fleeing cities over crime is a warning sign we can’t ignore

by Corey Burres | May 22, 2023

Businesses fleeing cities over crime is a warning sign we can’t ignore

Key Points

Crime is causing businesses to flee communities already experiencing a lack of opportunity.
As businesses flee high-crime areas, there is a negative impact on the price and availability of goods in underserved communities
Communities will see healthcare and community health impacts from this loss of retailers.

We keep hearing about it: Businesses and retailers fleeing downtown areas—or entire city communities—due to violence, theft, and crime. It happened in Portland, Chicago, Los Angeles, and San Francisco, but it should be a warning to other cities around the country.

The exodus of companies due to crime creates a downward spiral for communities already experiencing a lack of opportunity.

LIMITED ACCESS AND HIGHER PRICES

When businesses flee a community they take convenience, jobs, and access to goods. The result is a market crisis where demand stays steady while limited access increases the price of goods and incomes stagnate or decrease.

The inability to access goods at reasonable prices is a direct response to the loss of competition. No longer are you able to buy essentials at market value but instead you pay premium prices as supply is constrained. This is no different than what we experienced nationally over the past few years as supply constraints pushed the price of gas, milk, and other essentials higher.

This limitation of access to transportation, clothing, and food will have consequences in other areas of community health and opportunity.

THE IMPACT ON HEALTHY FOOD OPTIONS

Take the limited access to food issue. We know that lack of healthy food options in underserved communities is an ongoing problem. Cheaper food options, which are “shelf-stable,” tend to be less healthy. This creates a downward trend of poorer health outcomes like obesity resulting in a rise in healthcare costs.

Communities with a lack of affordable healthy food options get stuck in a cycle where they are less healthy, less likely to work, and more dependent on temporary, less-reliable healthcare. When we see stores closing or moving out of a community due to violence, we see smaller businesses that cannot afford to absorb the costs of throwing out healthier foods. The result is that these businesses tend to stock less perishable and more unhealthy items on their shelves.

This means that these communities become more dependent on systems and services to survive long term. Our safety-net programs are designed to be temporary systems that catch people (or even communities) at the point of tragedy to help them get back on their feet. But when opportunity flees, these individuals are left hopeless, looking for what’s next. They become trapped in their circumstance.

“…communities become more dependent on systems and services to survive long term.”

CRIME IS THE TRUE THIEF

Crime and the unwillingness to address crime robs communities of value. It makes these communities into societal pariahs.

Not only are these communities unable to access adequate goods, they are unable to find local jobs and services. When companies flee an area, they take hundreds of entry to mid-level jobs. In a community that is reliant on these types of job opportunities, it once again means they have no path out of their current situation.

In his study of ethics, Immanuel Kant asserted that “if you steal from him, you steal from yourself.” It’s a philosophical acknowledgment that crime steals from the entire community. It takes livelihood, property, and security away from everyone in the community including the perpetrator because it destabilizes.

While it’s hard for some to have sympathy for a mega-corporation needing to close a store, it is a warning sign to the health of that community. Vibrant communities, which we often speak of here at the Georgia Center for Opportunity, are ones that attract opportunities. They are communities so lively that everyone, even mega-corporations, wants to be a part of them. As we begin to see these companies leave a community it catches headlines, but the real-world impact is much more than a temporary blip in our newsfeed.

We must address crime in communities to keep opportunity open to all.

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Inflation is becoming worse for Americans on a fixed income

by Erik Randolph | May 10, 2023

Inflation is becoming worse for Americans on a fixed income

Today, the U.S. Bureau of Labor Statistics announced that in April the Consumer Price Index (CPI) rose by 0.4%, not seasonally adjusted. Year over year, the CPI has gone up 4.9% in the last 12 months.

The Georgia Center for Opportunity’s (GCO) take: “Not only has the federal government abandoned restoring purchasing power, they do not appear even capable of bringing inflation down to the Federal Reserve’s inflation rate target of 2%,” said Erik Randolph, GCO’s director of research. “Devaluing the dollar means that Americans must have comparable wage inflation just to keep with prices. That’s worse for Americans living on fixed incomes, the working class, and the poor.”

Navigating the current economic crisis: A guide to surviving the job market

by David Bass | Apr 17, 2023

Navigating the current economic crisis: A guide to surviving the job market

Key Points

As of March 2023, the Bureau of Labor Statistics reported a nationwide unemployment rate of 3.5%.
Well-known companies are conducting large-scale layoffs—in some cases, laying off tens of thousands of employees.
The BETTER WORK program can help you take the next steps in your career to secure a better job, whether you’ve been laid off or you’re simply looking to move to the next level.

The COVID-19 pandemic has had a profound impact on the global economy, leading towidespread job losses and an uncertain future for many workers. As we continue tonavigate the economic crisis, it is important to understand the current state of the jobmarket in Georgia and strategies for finding and securing employment.

Times may be turbulent, but with the right mix of strategy, action, and support, it’s possible to find and keep gainful employment.

The state of the job market

The current economic crisis has impacted the job market in a number of ways, causing several industries to contract. Layoffs have been widespread across multiple markets. As of March 2023, the Bureau of Labor Statistics reported a nationwide unemployment rate of 3.5%. But with many companies announcing widespread layoffs, that number could potentially increase in the coming months.

Since January 2023, the tech industry has been hit hard by layoffs in a number of companies. The impact extended to household-name brands such as Meta, Google, Microsoft, Zoom, Netflix, Salesforce, and many others. Beyond tech, other well-known companies are conducting large-scale layoffs—in some cases, laying off tens of thousands of employees. Disney just announced 7,000 coming layoffs, while Amazon is cutting 9,000 more jobs in addition to the 18,000 jobs it cut in early 2023. Companies such as Goldman Sachs, H&M, Walmart, McDonald’s, Tyson Foods, NPR, and many others are also letting staffers go, in some cases by the thousands.

Ultimately, white-collar workers are most likely to face layoffs as the impending recession looms. Most blue-collar jobs are still hiring, though, so workers in those sectors may fare better.

Strategies for finding employment

Having a support system to come alongside you and help with your job search is invaluable. The BETTER WORK program can help you take the next steps in your career to secure a better job, whether you’ve been laid off or you’re simply looking to move to the next level. If you’re in the Gwinnett or Columbus areas, we’re ready to help! Learn more about BETTER WORK here.

Regardless of whether you face layoffs or not, it’s important to get prepared for the possibility of a job hunt. It’s far better to update your resume and refresh your network connections now, rather than waiting until it’s too late. Here are a few things you can do to boost your chances for landing new employment, should the need arise.

1. Assess your skills and experience: What skills and experience have you acquired over the years? What about transferable skills? Make an exhaustive list of your professional experience and transferable skills up to this point. After that, consider listing out what skills you might like to acquire in the future.

2. Identify in-demand jobs and industries: If you need to launch a job search, you’ll want to start with industries that are actively hiring. You can research specific industries on the Bureau of Labor Statistics website, but it’s also useful to check the pulse of the market by running searches on Google and staying up to speed on LinkedIn.

3. Network and leverage personal connections: It’s always important to meet new professional connections and keep in touch with existing ones, but now it’s more important than ever. Reconnect with professional connections and leverage your network to find new opportunities you might not come across otherwise. If you don’t yet have an account on LinkedIn, go ahead and get set up there, too. It’s a great place to showcase your skills, follow companies you’re interested in, apply for jobs, and keep in touch with professional peers.

4. Utilize online job boards and resources: There are plenty of fantastic resources online that you can use to find and apply for great jobs. Sites like CareerBuilder, Monster, Remote.co, Indeed, and FlexJobs are useful for finding strong opportunities. You can also apply directly to jobs you’re interested in through company websites.

“Having a support system to come alongside you and help with your job search is invaluable.”

Moving forward in the job market

Regardless of whether you’re currently job searching or preparing to do so in the future, it’s important to understand how to move forward in the job market. It’s also important to note that, according to Atta Tarki’s report in the Harvard Business Review, it’s “still a workers’ labor market.” That means, for many job seekers, the power is still in your hands.

Don’t lose heart if you find yourself searching for new work in the near future. Embrace new opportunities and industries, cultivate and identify transferable skills, and get ready to pivot quickly if needed. Stay flexible and adaptable to changing market conditions, and plan for the future. When you remain open to new possibilities, you’ll have that much more control over your career trajectory.

Georgia is one of the top states for economic freedom

by David Bass | Mar 7, 2023

Georgia is one of the top states for economic freedom

Key Points

Georgia continues to be one of the most business friendly states.
Georgia did not impose strict lockdowns during the pandemic.
We believe that when the government refrains from heavy-handed intervention in the economy, everything from community life to poverty rates, job opportunities, upward mobility, and life expectancy will keep getting better.

Georgia is one of the most economically free states in the entire country, and that means more opportunity for our residents. That’s according to a new report from the Fraser Institute that tracks economic freedom in North America.

It’s clear that people across the country are realizing what a great place Georgia is to work and raise a family. According to Census.gov, Georgia is also among the top 10 most populous states in the U.S., and our population grew during the COVID-19 pandemic. We believe that our economic freedom is directly tied to this influx of new Georgia residents who moved into the state between 2021 and 2022.

The Fraser Institute report backs this statement. In the report, five out of the top 10 states for economic freedom are also in the top 10 list for population growth. Conversely, virtually all the states (roughly 17) losing population over the last few years are among the worst states in the nation for economic freedom.

“The truth is, the economic results Georgia has enjoyed over the past few years translate into our people’s wellbeing.”

A closer look at Georgia’s economic freedoms

Relative to other states in the U.S., Georgia has a low tax burden. This includes income tax and business taxes. Georgia also has a relatively low regulation on businesses and sole proprietors.

Georgia’s economic freedoms were already in place before the COVID-19 pandemic, but they became more apparent during the 2020 lockdowns. The Fraser Institute’s study covered the first five months of COVID restrictions in North America, and it showed that many of Georgia’s economic improvements were the direct result of the lack of tight restrictions in our state.

During 2020, Georgia didn’t impose widespread lockdowns or restrictions. We lifted those restrictions as quickly and reasonably as we could, given the situation. Without the burden of long-term, severe economic restrictions and COVID-related mandates, we gave people and businesses room to grow.

The good life, with room to grow

The truth is, the economic results Georgia has enjoyed over the past few years translate into our people’s wellbeing. Our economic freedoms here directly impact the daily lives of people from all backgrounds. By virtue of the state government’s low level of intervention, our communities are positioned to continually improve over time.

While economic freedom may not be experienced the same way by all (because the poor in a free state may not — and likely do not — feel very free), economic freedom generally means that even the poor benefit. That’s because, in free economies, there’s more charitable giving, more organizations who can help, and more job opportunities to help someone escape poverty for good.

Here at Georgia Center for Opportunity, we believe that when the government refrains from heavy-handed intervention in the economy, everything from community life to poverty rates, job opportunities, upward mobility, and life expectancy will keep getting better. We’ll draw people here who want to share in and enjoy those economic opportunities. And together, we can continue working toward creating a brighter future for our state and the people who live here.