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An empty street and closed businesses illustrate the real-life impact of crime on poverty in a community.

Key Points

  • As Americans become more skeptical of the American Dream, an important issue to address is the link between poverty and violent crime. 
  • Research has found that violent crime negatively affects property values, employment, and outcomes for children. 
  • Providing a safe environment is a core government responsibility, and it’s essential for lowering fear, improving economic mobility, and building healthy communities. 

A recent Pew Research Center poll examined American attitudes about the attainability of the American dream. Overall, 53% of respondents believed the American dream was still possible. 

Responses were remarkably consistent across race and differed only slightly by party affiliation (56% for Republicans, 50% for Democrats). 

Age was the factor where more drastic differences of opinion started to emerge. The younger the cohort, the lower the percentage of respondents who felt the American dream was still possible. 

  • Age 65+: 68% believed the American dream was still possible. 
  • Age 50-64: 61% thought the American dream was still possible. 
  • Age 30-49: 43% felt the American dream was still possible. 
  • Age 18-29: Just 39% agreed the American dream was still possible.  

Among the youngest groups, a larger percentage—48% of 30 to 49-year-olds and 51% of 18 to 29-year-olds—thought the American dream was once possible but no longer was. 

The current attainability of the American dream is subject to much debate, not fleshed out here. One factor that deserves more attention is the role of public safety in shaping communities where people have opportunities for a better life for themselves and future generations.  

Of all the barriers to opportunity, violence is one of the most vicious because it can single-handedly upend all the building blocks of a flourishing life—family stability, access to quality education, and work opportunities. And a disproportionate amount of this suffering is borne by our poorest and most vulnerable communities. 

Nearly 50% of According to Pew Research polling, Americans think the American Dream is no possible.

The impact of crime on children

Future generations have a harder time getting ahead in life. 

It’s clear from the data that nearly half of children raised in the poorest households—the bottom 20% of incomes—end up in that bottom 20% as adults. A tremendous number of factors contribute to this cycle of poverty—from the flaws in government safety net programs to the affordability of housing to improving educational options and outcomes.

Then there’s the link between poverty and crime. One of the most visceral and heartbreaking things that impacts a child’s upward mobility is growing up in a community with a high rate of violence.

According to the Annie E. Casey Foundation, about 3.6 million kids live in communities their parents deem to be “unsafe.”

The level of violent crime in a county negatively affects the level of upward economic mobility among individuals raised in low-income families. Opportunities decline because high rates of violence reduce productivity among crime victims, depress economic activity, reduce home values, and drive out residents who can leave. 

In communities struggling with poverty, violent crime can lead to worse outcomes for kids.

According to the Annie E. Casey Foundation, about 3.6 million kids live in communities their parents deem to be “unsafe.”

In communities struggling with poverty, violent crime can lead to worse outcomes for kids.

According to the Annie E. Casey Foundation, about 3.6 million kids live in communities their parents deem to be “unsafe.”

The impact of crime on local economies

Communities become economically unhealthy. 

A relationship between poverty and crime also manifests itself in the effects that violence has on employment. Several studies have demonstrated that direct victimization is associated with more unemployment and less productivity at work. 

  • A study of violent trauma patients found a positive association between victimization and unemployment. 
  • Another study found that, following the homicide of a family member, employment went down 27% among surviving family members. 
  • In a sample of parents whose children had been murdered, more than 50% of the parents perceived themselves as nonproductive at their jobs in the four months after the murder.

High rates of violent crime don’t just impact victims. Rising crime has been negatively associated with business activity, resulting in downsizing and discouraging new businesses from entering the marketplace.

Neighborhoods then lose out on opportunities for jobs and affordable access to food, household items, and other essential goods and services. 

One large analysis looked at the impact of gun violence on the economic health of neighborhoods in six cities: Baton Rouge, LA; Minneapolis, MN; Oakland, CA; Rochester, NY; San Francisco, CA; and Washington, DC. The findings were remarkably consistent. An increase in gun violence in a census tract reduced the growth rate of new retail and service establishments by 4% in Minneapolis, Oakland, San Francisco, and Washington, DC. 

In Minneapolis, each additional gun homicide in a census tract in a given year was associated with 80 fewer jobs the next year; in Oakland, a gun homicide was associated with 10 fewer jobs the next year. 

Local business displays %22open%22 sign.

“Local and state governments must focus on reducing violent crime, not just as necessary to protect human life but also because doing so is a prerequisite to real economic opportunity in poor communities.”

Josh Crawford, GCO Director of Criminal Justice Initiatives

Local business displays %22open%22 sign.

“Local and state governments must focus on reducing violent crime, not just as necessary to protect human life but also because doing so is a prerequisite to real economic opportunity in poor communities.”

Josh Crawford, GCO Director of Criminal Justice Initiatives

The impact of crime on neighborhoods

Communities stop becoming places that people want to call home.

Studies have also found that increases in gun violence hurt property values.

  • In Minneapolis: Each additional gun homicide resulted in a $22,000 decrease in average home values in Minneapolis census tracts.
  • In Oakland: Each additional gun homicide resulted in a $24,621 decrease in Oakland census tracts.
  • In Los Angeles: A separate study found that increases in violent crime in a neighborhood in a given year yielded decreases in property values in that neighborhood the following year. 

And those who can leave communities with high rates of violence, do. One estimate found that, for every homicide, 70 residents move out of a neighborhood.

Finally, increased violent crime often, justifiably, leads to more incarceration. But communities with higher rates of incarcerated parent-aged men often have weaker social institutions and are more unstable. 

To have vibrant communities and flourishing lives, public safety must take priority.

Improving economic conditions and opportunities for any community, but especially low-income neighborhoods, is incredibly difficult without first reducing violence.

One of the most recent examples is the great crime decline of the 1990s, which dramatically improved the most desperate neighborhoods and improved life among their residents. 

It doesn’t have to be this way. Decades of policy innovation, evaluation, and replication have taught us how to make communities safer and break the interconnected cycles of poverty and crime.

The most effective methods include:

  • Focusing law enforcement efforts on criminal street gangs
  • Punishing violent recidivists appropriately
  • Reducing the presence of abandoned buildings in crime hot spots

People have a deep need to feel safe and secure in the places where they live, work, and go about their day-to-day lives. Providing a safe environment is government’s first responsibility to its people.

When it comes to public safety, making good policy choices changes lives—not only by reducing physical harm but also by transforming neighborhoods into places where the American Dream can still be found.

Visit our public safety resource page to learn more about policy solutions and see recommendations for specific cities. 

Atlanta's public safety funding for 2025 invests in best practices for better community safety.

Key Points

  • The Atlanta City Council approved nearly $30 million dollars for public safety funding as part of the 2025 city budget. 
  • They also approved a 3.8% increase in the number of authorized positions within the Atlanta Police Department.
  • More officers on the street and more tools for those officers generally mean less crime.

Atlanta’s City Council has adopted its budget for 2025, which includes $29.8 million for public safety funding as well as a 3.8% increase in the number of authorized positions within the police department. 

This is good news for the city. In the first quarter of 2024, murders in Atlanta were up 15%—a trend that runs opposite to other major cities and to Atlanta’s own drop in violent crime in 2023. 

While it’s not helpful to overreact to changes during such a short period of time, the increase is a reminder that Atlanta must keep prioritizing best practices to lower crime, reduce fear, and foster an environment where opportunity can thrive.

Atlanta's murder rate is up 15% in the first quarter of 2024.

Atlanta public safety funding to boost a key element of the justice system

Atlanta, like many cities around the country, began to see increased homicides in the late 2010s that then exploded with the onset of the COVID-19 lockdowns, urban unrest, and changes in policing practices in 2020. Atlanta then had three of its deadliest years in decades in 2020, 2021, and 2022. 

Thankfully Atlanta’s elected leaders have not sat by idle. By investing more in policing, Atlanta Mayor Dickens and the city council are attempting a time-tested truism: more police means less crime. 

Police are the element of the criminal justice system most visible to the public and the arm with which citizens are most likely to interact. As Eastern Kentucky University professor Dr. Gary Potter puts it, “[t]he American system of criminal justice is predicated on an assumption of effective policing. After all, in order to deter criminals and punish the evil-doers you have to catch them.”

This is more than theoretical. Research on policing and crime has repeatedly found that more well-managed police leads to less crime. Most recently, a 2018 study looked at police and crime data from 1960 through 2010 and concluded that every $1 spent on policing generates about $1.63 in social benefits, mostly through reductions in homicides.

Atlanta City Council invests in technology for a safer community environment

Atlanta’s public safety funding will go to more than just additional police staffing and pay incentives for officers. Other allocations include:

  • $3.4 million for technology upgrades like body cameras, data storage, and identification technology.
  • $750,000 for additional security cameras in city parks and other areas highlighted by the department. 

Of particular importance are the funds allocated for additional cameras.

Washington, D.C., which until recently had been plagued by skyrocketing homicides and carjackings, recently implemented a similar expanded security camera program. As a result of the program, DC chief of police Pamela Smith recently revealed a substantial increase in arrests for shootings, carjackings, and robberies. Importantly, she also noted an increase in cooperation from crime-weary citizens due to increased trust in the department. 

Hopefully the new investments will produce similar results in Atlanta, where residents are equally crime-weary and hoping for relief. 

More Crime Solutions for Atlanta

How to reduce crime in Atlanta: Six practical policy methods (Georgia Center for Opportunity)

A path that could reduce Atlanta’s juvenile crime (Josh Crawford in the Atlanta Journal-Constitution)

There’s hope for reducing Crime in Georgia (Georgia Center for Opportunity)

There’s a crime divide between Americans and politicians, and voters are watching (Josh Crawford in The Hill)

The Safer Kentucky Act focuses on lowering crime and fear in Louisville, as well as other vulnerable neighborhoods across Kentucky.

Key Points

  • The Safer Kentucky Act (House Bill 5) is a package of crime-related bills passed by the Kentucky Legislature in 2024. The legislation includes six GCO-recommended solutions for restoring community safety. 
  • The bill lowers crime by addressing gang-related violence, updating carjacking laws, facilitating successful reentry programs, and more. 
  • The Safer Kentucky Act is good news for impoverished communities and at-risk populations, which tend to bear the brunt of increasing violence. These public safety reforms will give communities hope and solutions to break cycles of violence and poverty and have better opportunities close to home.

Kentucky is home to one of the most challenging public safety environments in the country. Even so, the state has made positive changes, thanks to crime reduction policies that have increased police funding and established much-needed programs. Louisville, for example, finished 2023 with a 4% reduction in fatal shootings and an 8% reduction in nonfatal shootings. These were the lowest totals in both categories in four years. 

But more needs to be done to ensure residents are free to move about their neighborhoods without fear of personal harm. The urgency has increased, given that homicides in Louisville exploded again in March 2024.

A new law, passed by the Kentucky Legislature in 2024, offers hope for lowering violence and fear in Louisville and across the state. The Safer Kentucky Act (House Bill 5) includes six policy reforms, drawing from GCO’s public safety research, that will restore safety and better opportunities to Kentucky communities. 

What is the Safer Kentucky Act? 

The Safer Kentucky Act is an omnibus crime bill, which is a type of legislation that combines several proposed policy reforms into a single bill. In the case of the Safer Kentucky Act, all the individual provisions touch on some aspect of public safety. 

Proposed reforms cover everything from homelessness to repeat violent offenders. Among these reforms are a handful of changes directly focused on reducing crime and relieving communities of the fear and loss associated with increasing violence.

Higher violent crime rates rob communities of precious lives and lower the quality of life in the most vulnerable neighborhoods. 

Higher violent crime rates rob communities of precious lives and lower the quality of life in the most vulnerable neighborhoods. 

Six Ways the Safer Kentucky Act Addresses Crime

Establishes strategies to lower gang-related violence

Group Violence Intervention (GVI), also known as focused deterrence, is a gang violence reduction strategy, and when implemented properly, it can have substantial impact. 

  • GVI uses an approach known as “call-ins.” Call-ins bring in groups of active gang members to deliver simultaneous messages of enforcement, resources for gang members to better their lives, and community moral voices expressing the unacceptability of the violence.
  • Louisville, KY, has operated a GVI program for a few years, but an interpretation of state law prevents probationers and parolees in gangs from being compelled to attend call-ins. Despite GVI strategies existing across the country, Kentucky is the only state with this participation issue. House Bill 5 clarifies state law to allow this kind of program participation.

Updates state law to discourage carjackings

Kentucky has no state law specifically addressing carjacking. When someone commits a carjacking in Kentucky, they face one of two consequences. They may be transferred to federal court and charged with the federal crime of carjacking. Or they could be charged in state court with a combination of assault and robbery. 

  • The absence of a state carjacking law leads to insufficient punishment for too many carjackers. It also makes tracking and data collection around carjacking more difficult. 
  • The data that is available suggests carjackings have risen significantly since 2020.
  • Passing the Safer Kentucky Act would, for the first time, create a state-level carjacking statute that enables communities to appropriately deal with and discourage carjackings.

Improves parent and guardian involvement in juvenile proceedings 

Building on the parental accountability measures in House Bill 3 (passed in 2023), the Safer Kentucky Act contains a provision that would require one parent or guardian to attend proceedings involving their children or child in their custody. 

By requiring parents to at least be present at their children’s hearings, the idea is that they may be more involved and invested in the child’s success. While there are few good answers in this area, these parent-focused participatory measures can help make a difference on the margins.

Adds life in prison for repeat violent offenders

KRS 532 is Kentucky’s most narrow violent offender statute. It includes what most people would consider the worst of the worst offenses—murder, manslaughter, serious assaults, rapes, robbery, burglary, and so on. 

The Safer Kentucky Act establishes a new “three strikes law” for violations of KRS 532. Conviction of a third offense would result in life imprisonment. 

This measure would ensure that the most violent repeat offenders are appropriately punished. Several studies have found that these types of laws reduce crime, so this change will likely help Kentucky lower crime in the future.

Brings witness intimidation laws into the 21st century 

House Bill 5 would amend Kentucky’s current statute related to intimidating a participant in the legal process. It expands the statute to include harassing communications (as defined in KRS 525.080), making it easier to prosecute and punish anyone who uses electronic mediums like social media to attempt to intimidate and dissuade witnesses in criminal cases.

Makes sure re-entry works

Our criminal justice system has several purposes, but one of the most important is helping convicts rejoin civil society once they’ve completed their sentences. 

Kentucky operates several re-entry programs based on best practices around the country. But do these programs actually reduce re-arrest, re-convictions, and re-incarceration? Right now, we don’t know. 

The Safer Kentucky Act would require regular evaluations of re-entry programs—a practice that would ensure effective programs get the support they deserve. It would also reallocate funding away from programs that aren’t reducing recidivism and put it toward new, innovative approaches.

Who would the Safer Kentucky Act help? 

Low-Income Families and Communities

The effects of crime disproportionately concentrate in our poorest and most vulnerable communities, keeping them locked in cycles of violence, poverty, and despair. The Safer Kentucky Act is a key step to restoring community safety. When public safety thrives, neighborhoods become homes for the education options, work opportunities, and healthy relationships that lift people out of poverty. 

At-Risk Youth and Juvenile Offenders

We know that parental involvement makes a difference in how children’s lives turn out. The Safer Kentucky Act gives juvenile offenders the opportunity to benefit from their parents’ presence as they navigate the criminal justice system and paths for rehabilitation. 

Former Inmates 

Former prisoners who are re-entering society have the best chance for a fresh start when states invest in reentry programs that have a track record of success. The Safer Kentucky Act will improve the support that ex-offenders receive through the criminal justice system. Ultimately, this empowers them to build stable, meaningful, and independent lives after serving their sentences. 

Law Enforcement 

The Safer Kentucky Act would give local law enforcement better methods to deal with small populations who tend to be responsible for the majority of crime. The bill also improves the justice system’s ability to help non-violent offenders and ex-offenders get back on a healthy, stable path. 

Additional Resources

GCO’s Public Safety Resource Page

As Juvenile Crime Skyrockets to Record Levels, States Seek to Crack Down (Daily Caller)

Getting serious about teen violence in Washington, D.C.: Louisville, Kentucky, provides a solution (The Washington Times)

New crime dashboard will report ‘real-time gun violence’ to expand transparency in Louisville (Wave)

How to Turn Back the Tide of Violent Crime (Washington Examiner)

Murder Is Actually Going Down—Wherever They’re Paying Cops More and Targeting Gangs (Newsweek)

Victims Matter (Josh Crawford on The Blue View Podcast)

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

By Joshua Crawford,  Director of Criminal Justice Initiatives

 

What a difference a year makes.

Around this time last year, the Council of the District of Columbia overrode Mayor Muriel Bowser’s veto of a criminal code reform bill that, among other things, lowered penalties for carjacking, robbery, and burglary.

At the time of the bill’s passage, Washington was already in the midst of a dramatic increase in carjackings that began in June 2020. From January 2018 until May 2020, the city averaged 12.3 carjackings a month. That number increased to 39.7 carjackings a month between June 2020 and January 2023, when the council overrode the mayor’s veto.

And, for the record, carjackings in the district have not been restricted to “that” part of town. In August 2022, Washington Commanders running back Brian Robinson Jr. was shot in the leg during an attempted carjacking in broad daylight.

When she vetoed the criminal code reform bill, Bowser, a Democrat, said, “This bill does not make us safer. … Any time there’s a policy that reduces penalties, I think it sends the wrong message.” No one would doubt the mayor’s progressive credentials, but the D.C. Council had her sounding like former U.S. Attorney General Ed Meese, who served during the Reagan administration.

 

Read the full article here

 

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

In this opinion editorial published in The Washington Times, Joshua Crawford highlights the escalating crime crisis in Washington, D.C., particularly focusing on a significant surge in violent crimes, including a staggering 104% increase in carjackings from the previous year. Crawford points out that a majority of carjacking arrestees in the city are under 18, with many being repeat offenders associated with or recruited by street gangs. The author suggests that Washington can learn from Louisville, Kentucky’s successful efforts to address teen violence. In Louisville, Republican state Rep. Kevin Bratcher spearheaded House Bill 3, a comprehensive measure aimed at holding violent juvenile offenders accountable and providing treatment. The bill mandates immediate detention for juveniles charged with serious violent offenses, offering a disruptive intervention in the cycle of violence. It also allocates funds for a new detention center and treatment programs, including cognitive behavioral therapy.

Read the full opinion editorial in The Washington Times.

 

Best practices for reducing crime can empower California to build safer communities through policy.

Key Points

  • Government shutdowns occur when Congress doesn’t pass a set of bills that give federal agencies and services the approval and funding necessary to operate. 
  • Government shutdowns and political wrangling distract from the real issues facing the poor and delay much-needed safety net reforms that would help people move out of government dependency.
  • There are bipartisan solutions Congress can act on to better serve low-income and marginalized communities.

Government shutdowns occur when Congress doesn’t pass a set of bills that give federal agencies and services the necessary funding to operate. Without this approval, agencies must pause all non-essential activity until Congress takes action. Government shutdowns often go hand-in-hand with political conflicts among federal leaders. When this dynamic takes hold in D.C., government shutdowns become, at best, a distraction from the real issues facing the poor and, at worst, a roadblock to helping people achieve stability and economic opportunity.

What happens during a government shutdown?

During a government shutdown, several disruptions happen:  

  • Benefits from Social Security, Medicare, and most other need-based programs still go out, but shutdowns often lead to furloughs or reduced staffing levels in federal agencies that administer these programs. As a result, beneficiaries may experience longer processing times for applications, appeals, and inquiries. 

  • Many federal employees are temporarily out of a job. They are instructed not to show up to work and aren’t paid during the shutdown window, though they typically receive back-pay once a shutdown ends.

  • Essential government employees, such as members of the military, air traffic controllers, and Transportation Security Administration (TSA) agents, are expected to keep working, usually without pay. 

  • Americans may experience delays in government-administered processes, such as permits and passports.

Government shutdowns and safety net programs 

For many Americans who currently need assistance from programs like SNAP, WIC, Temporary Assistance for Needy Families (TANF), and Social Security, a government shutdown can be a fearful prospect. The worry of losing essential benefits and facing greater financial hardship can take a significant toll on individuals and families in low-income households and communities. 

Impact of a shutdown on SNAP benefits

SNAP, the nation’s second largest safety net program, helps eligible families buy food. Around 42 million Americans currently receive this vital support. The federal government pays for SNAP benefits, and funds are delivered to the states for distribution to the individuals and families who need them.

During a government shutdown, there are typically enough funds available to provide SNAP benefits for about a month. Few shutdowns in American history have gone on that long, so recipients usually don’t notice any change in financial assistance.

But on November 1, 2025, the current government shutdown surpassed the one-month point, and SNAP recipients didn’t receive any benefits for the coming month. To address this critical situation, the federal government will use its emergency funds to provide SNAP support. Unfortunately, this will only be a short-term solution, and it isn’t likely to cover all the SNAP assistance the government would usually distribute during the month.

It’s important to note that a pause in SNAP benefits during a government shutdown hurts not only individuals and families, but also local economies. Food stamps help support the businesses where people spend them, like grocery stores and farmers markets. Every dollar of SNAP benefits generates about $1.54 in economic activity, but this grinds to a halt when the government doesn’t fund this essential public assistance.

Impact of a shutdown on WIC benefits

WIC provides families with free healthy foods, breastfeeding support, nutrition education, and referrals to other services. Almost 7 million pregnant women, new moms, and children up to age 5 currently depend on WIC support.

The 2025 shutdown has put WIC benefits in jeopardy, and federal funding for this crucial assistance becomes more uncertain the longer the government remains closed. In the short term, federal officials are using revenues from other sources to keep the program running.

Government shutdowns can push people struggling with hardships further below the poverty line. Recent data shows that a pause in crucial welfare assistance would cause an additional 2.9 million Americans to fall into poverty in late 2025. This would also put future generations at risk of becoming trapped in long-term cycles of poverty.

During a government shutdown, community support for our neighbors is critical. Churches, food banks, charities, and other nonprofit organizations can increase their efforts to provide food to people in need to help them through the difficult time, and community members can provide urgently needed donations.

There is a solution Congress can act on to create a better pathway out of poverty

A government shutdown may not cut off food stamps, WIC, Social Security, or other safety net benefits immediately. However, low-income and vulnerable communities still suffer. 

In the short term, lawmakers need to better serve people living on the margins by being willing to compromise and end the government shutdown. This will make it less likely that the struggles of low-income Americans get lost in political conflicts. 

In the longer term, the shutdown is a reminder that we need a better safety net system—one that encourages economic opportunity and stability instead of leaving millions of Americans exposed to the ups and downs of federal government turmoil. By ending the shutdown, Congress could take up the more important priority of One Door reform. 

In the current welfare system, recipients are forced to navigate multiple, disconnected programs, eligibility requirements, and caseworkers—a maze that becomes a trap for welfare dependence instead of a secure path out of poverty. 

The One Door Model makes it possible for the safety net to be a bridge rather than a barrier to opportunity. It does away with the disconnected programs and integrates human services with work support so beneficiaries who are capable of working have a clear, supportive, and accessible path to personal well-being and meaningful jobs.

The One Door Model provides welfare recipients with a greater sense of direction, dignity, and purpose, empowering people to become self-sufficient and enabling them to truly flourish.

FAQs about the government shutdown

Will SNAP benefits be paid in November 2025?

  • The federal government plans to use its emergency funds to provide SNAP benefits in November 2025. Unfortunately, these funds aren’t likely to cover all the SNAP assistance the government would usually distribute during the month. The payments will also be delayed because states will have to adjust their automated systems to distribute reduced amounts.

Will WIC benefits be paid in November 2025?

  • The federal government has currently made funds available to pay WIC benefits for the first few weeks of November 2025.

Are Head Start programs affected by the shutdown?

  • Head Start programs provide early learning, health, and well-being services to families with young children. The programs receive funding from the federal government, and many are closing due to the shutdown. Some are staying open by providing limited services, reducing staff, or shortening operating hours.

Where can Georgia families go for food assistance?

  • Foodfinder.us is a free, nonprofit website and mobile app that helps people find nearby food pantries and free food programs. Users can easily search for local support by entering their zip code.
  • Feeding Georgia is a statewide network of food banks that collaborates to end hunger in Georgia. Its website offers helpful links to local food resources.

Where can Georgians get help to find work quickly?

  • The Georgia Center for Opportunity’s BETTER WORK program partners with employers and local resources throughout Gwinnett County and the city of Columbus to connect people with training and support services and to help them find meaningful work.

How are government shutdowns related to welfare benefits cliffs?

  • A benefits cliff occurs when an individual, family, or household loses more in benefits from government assistance programs than it gains from additional earned income. When a person experiences a benefits cliff, they are thrust into serious difficulties: losing housing, going hungry, fearing that their children will be taken by Child Protective Services, and more. A government shutdown can have similar effects to benefits cliffs because it can cause big delays or cuts to essential safety net program payments. This creates significant financial hardship for people who are struggling and can push them deeper into poverty.

What are the political games in D.C. costing communities?

Americans deserve better than having their day-to-day well-being threatened by political dynamics in D.C. Shutdowns result when federal leaders devote energy to political distractions instead of bipartisan opportunities to fix our broken safety net system. This costs millions of people the chance for a more fulfilled, self-sufficient life. 

We need a safety net system that gives people hope and independence from D.C. To make that possible, the current government shutdown needs to end so legislators can get back to the work of serving people—truly putting citizens’ needs first and creating policies that allow Americans to escape poverty and flourish.

Related reading

Delays, smaller payments: How SNAP funding will work
ABC News

What to know about SNAP as benefits set to expire amid government shutdown
ABC News

How do we know the One Door Model works?
Alliance for Opportunity

Explainer: What the government shutdown means for SNAP, WIC, and disability programs
American Association of People with Disabilities

Suspending SNAP benefits in November could push 2.9 million people into poverty
American Enterprise Institute

Five ways U.S. government shutdown is hurting – and why it’s about to get worse
BBC

Why the U.S. government has shut down and what happens now
BBC

What is a government shutdown?
Brookings

A better way to get welfare recipients back into the labor force
City Journal

Appropriations 101
Committee for a Responsible Federal Budget

Are work requirements good or bad?
Georgia Center for Opportunity

Understanding benefits cliffs
Georgia Center for Opportunity

Why one woman turned down a $70K job due to benefits cliffs
Georgia Center for Opportunity

What is SNAP? And why does it matter?
Johns Hopkins Bloomberg School of Public Health

SNAP benefits will restart, but it will be half the normal payment
NPR

Utah’s ‘One Door’ policy shows the way forward on safety-net reforms
RealClearPolicy 

Supplemental Nutrition Assistance Program (SNAP)
U.S. Department of Agriculture

WIC: USDA’s Special Supplemental Nutrition Program for Women, Infants, and Children
U.S. Department of Agriculture

 

Black History Month School Choice

Key Points

  • Access to quality education is a top conversation in Georgia and many other states and has been for decades.
  • Stories of black educators offer inspiration for continuing to pursue better education opportunities for every kid. 
  • The examples set by African American educators remind us how critical education is for supporting kids’ mental health, preparing them for jobs, and helping them become active citizens in their communities.

No matter what chapter of history you look at, education is often one of the top issues that states and communities have wrestled with. Even today, Georgia is grappling with the reality that thousands of kids are stuck in underperforming schools, and change is needed if we are going to give them a chance to thrive. 

As we celebrate Black History Month this February, it’s a perfect time to look to the African American community for inspiration on the issue of education. Having suffered obstacles ranging from zero education access to segregation and racism in schools, numerous African Americans throughout our country’s history know firsthand the struggle—and the gift—that education can be. Many have dedicated themselves to the cause of education, driven by a shared passion and vision for giving every kid a quality education, regardless of their race or circumstance of their birth. 

Let’s meet a few of these leaders who dedicated their lives to fighting for more educational freedom and opportunity.   

  1. Charlotte Forten Grimké (1837-1914)

Charlotte Forten Grimké grew up in Philadelphia in a family well-known for its activism against slavery. In her early school years, she was taught at home by tutors. Because Philadelphia’s school system was segregated, Charlotte’s parents sent her to Salem, Massachusetts, where she could attend a more progressive school that accepted Black students. As an adult, Charlotte paid the opportunity of education forward. She attended teacher training school, and during the Civil War, she was the first Black teacher to work at the Penn School in South Carolina, a school established to teach African-American children both while they were enslaved and after they were freed. After the war, Charlotte worked for the Freedmen’s Union Commission and the U.S. Treasury Department to help recruit and train more African-American teachers. 

 

May those whose holy task it is,

To guide impulsive youth,

Fail not to cherish in their souls

A reverence for truth;

For teachings which the lips impart

Must have their source within the heart.

– From The Journal of Charlotte Forten, 1853

    1. Fanny Jackson Coppin (1837-1913)

    Fanny Jackson Coppin was born into slavery and was not freed until age 12. For the rest of her young adult years, she worked as a servant for author George Henry Calvert in Newport, Rhode Island. Fanny yearned for education, so she used her earnings to employ a tutor for about three hours a week. Thanks to her academic diligence and financial help from an aunt and the local African Methodist Church, Fanny entered Oberlin College, Ohio, which was the first college in the United States to enroll both black and female students. 

    It was at Oberlin College that Fanny embarked on her career as an educator—a vocation that would create learning opportunities for thousands of African Americans. While a student at Oberlin, she taught a free night class for African Americans in reading and writing. The College also appointed her to teach classes at their preparatory division, the Oberlin Academy, making Fanny the first black teacher among the Academy’s faculty. After graduating with her bachelor’s degree in 1865, becoming one of only three African American women to do so, she accepted a position at Philadelphia’s Institute for Colored Youth. Over the course of her career, Fanny would become the first African American woman to serve as a school principal and to fill the role of superintendent of a United States school district. 

     

    “I feel sometimes like a person to whom in childhood was entrusted some sacred flame…This is the desire to see my race lifted out of the mire of ignorance, weakness and degradation; no longer to sit in obscure corners and devour the scraps of knowledge which his superiors flung at him. I want to see him crowned with strength and dignity; adorned with the enduring grace of intellectual attainments.” – Fanny Jackson Coppin, writing to Frederick Douglass in 1876

    1. Inez Beverly Prosser (1895-1934)

    Inez Beverly Prosser was born into a family that highly valued education. Opportunities were scarce for African American kids during Inez’s childhood, and her family moved often in search of the best education available for Inez and her 10 siblings. Inez’s schooling led her to earn a teaching certificate, a bachelor’s degree, and a master’s degree in educational psychology. 

    Inez had a deep passion for education and believed in its power to change lives. She held various roles as a teacher and assistant principal in segregated schools, but her interest in psychology set her apart from other educators. She devoted herself to understanding and improving the educational and psychological development of African American students. In 1933, she became one of the first black women to earn a PhD in psychology. Her research undertook a pioneering and bold examination of segregation’s impact on black students’ social, psychological, and educational development. Findings and arguments from her dissertation were cited in the larger debate about school segregation, carving out a legacy for Inez as one of the leading advocates for the educational and mental health of African American kids.  

     

    “I am interested in that type of research which will lead to better teaching in elementary and high schools.” – Inez Beverly Prosser

    “Many have dedicated themselves to the cause of education, driven by a shared passion and vision for giving every kid a quality education, regardless of their race or circumstance of their birth.”

    “Many have dedicated themselves to the cause of education, driven by a shared passion and vision for giving every kid a quality education, regardless of their race or circumstance of their birth.”

    1. Kelly Miller (1863-1939) 

    From his early school days, Kelly Miller showed a talent for math. After an impressive academic career spanning the study of math, sociology, Latin, and Greek, Kelly received a bachelor’s degree from Howard University. He became the first black man to be accepted into Johns Hopkins University for post-graduate work in mathematics, physics, and astronomy. 

    However, Kelly was forced to leave Johns Hopkins when the school increased its fees, and he returned to Howard University where he took a teaching job and continued his own education, earning advanced degrees in math and law. In 1907, Kelly became the dean of the College of Arts and Sciences at Howard. His passion for education motivated him to modernize the College’s curriculum and to tour states across the South in recruitment of new students. Under his leadership, enrollment tripled, and curriculum improved. 

    “The instruction which you have received here, and upon which your diplomas set a seal, will be of value to you only in so far as you digest and assimilate it, and wisely adapt it to the tasks which lie before you.” — Kelly Miller

    1. Nannie Helen Burroughs (1879-1961)

    Nannie Helen Burroughs was born in Virginia, and after her father’s death, she moved to Washington, D.C., with her mother where she completed high school and graduated with honors. While Nannie’s career began with roles in secretarial and bookkeeping work, education would eventually become her focus. 

    Her mark in education was a unique one: Nannie wanted to help poor, working African American women. She believed that these women should have opportunities to learn skills beyond domestic work, so in 1909, she founded the National Training School for Women and Girls in partnership with the National Baptist Convention and through the support of small donations from the black community. The school provided job training and academic instruction to young black women, giving them the option to enter the workforce and pursue careers. The school was one of the first of its kind in the early 20th century, and Nannie served as its president until her death in 1961. 

     

    “To struggle and battle and overcome and absolutely defeat every force designed against us is the only way to achieve.” — Nannie Helen Burroughs

    1. Esau Jenkins (1910-1972) 

    Esau Jenkins was a shining example of how community members can contribute to improving education for underserved kids. Having grown up in the era of segregation, Esau knew what it was like not to have access to educational opportunities. If he had anything to do with it, the kids in his South Carolina community would not have to suffer the same injustice. 

    So, Esau and his wife used part of their income to buy a bus to transport their own kids and fellow children on South Carolina’s Sea Islands to schools in Charleston. Esau also used his bus to help adult workers get to their jobs. During these rides, he and his wife would teach the workers about the U.S. Constitution and other information that was required to pass literacy exams and become a registered voter. This experience showed Esau that a better approach to adult education was desperately needed, and he founded the first Citizenship School on Johns Island to provide more structured education for adults, including instruction in basic literacy and politics. Thanks to his efforts, thousands of African Americans became registered voters. 

    Even while supporting adult education, Esau’s motivation to help kids did not falter. In 1951, Esau played a key role in establishing Haut Gap School on Johns Island so that the youth in that community would have a quality education option. Today, Haut Gap is a middle school that functions as a magnet school—a type of public school option that specializes in certain curriculum areas, such as STEM (Science, Technology, Engineering, and Math), the arts, or vocational training.

     

    “It takes a pretty large person to love. Any small person can hate.” – Esau Jenkins

     

    1. Septima Poinsette Clark (1898-1987) 

    Septima Poinsette Clark’s legacy was that of a community teacher. Septima grew up in Charleston, South Carolina—a place where the lines of segregation and class were strictly and harshly drawn, especially when it came to education. Septima was a bright student. After sixth grade, she tested directly into ninth grade at the Avery Institute and graduated from high school in 1916. Financial constraints prevented her from attending college, but even without a degree, she passed the state examination that allowed her to teach. 

    Charleston did not allow African Americans to teach in its public schools, so Septima took a teaching job in the rural community of Johns Island just outside of Charleston. Throughout her 40 years as an educator, Septima had various jobs where she would teach children during the day. At night, on her own time, she would teach African American adults how to read and write and, in the process, she developed several innovative methods to help them pick up these skills more quickly. Septima believed that literacy and citizenship went hand-in-hand, so as she taught basic literacy skills, she also helped adults learn about their rights and become informed, registered voters. Through her work, she became an influential civil rights leader and activist, known as “The Mother of the Movement” by Dr. Martin Luther King, Jr., and many others. 

     

    “What we are working for is an educational program that has become a resource and rallying point for scores of brave southerners who are leading the fight for justice and better race relations in these crucial days.”

    inflation

    Key Points

    • September CPI numbers show inflation is still on the rise. 
    • Core inflation hit a 40 year high.
    • Local communities are the key to paving the way for economic success. 

    In September, President Joe Biden prematurely declared victory over inflation as he held a celebration event over the party-line passage of the Inflation Reduction Act that required the Vice President of the United States to cast the deciding vote in the Senate.

    Perhaps they were fooled by the Consumer Price Index (CPI) numbers for July and August. In July, the CPI dropped just a tiny bit to 295.271 from the seasonally-adjusted index of 295.328 for June, which rounds to an inflation rate of 0.0%. Although the unadjusted index slightly decreased again in August, the seasonal adjusted number rose by only 0.1% that calculates to 1.4% when annualized.

    But, alas, inflation rates typically fluctuate from month to month, and what’s important is the longer-term trend.

    When the U.S. Bureau of Labor Statistics released the CPI numbers for September, it became all too clear that we must continue to suffer through rising prices — because inflation has not yet been tamed. 

    The overall monthly inflation rate rose 0.4% when seasonally adjusted, that is 4.7% when annualized. Yet again, the inflation reading came in hotter than expected, with consensus estimates being around 0.3% for the September reading. The year-over-year inflation rate stands at 8.3%. 

    Worse, inflation has become ingrained in our economy with no indication that it’s going away anytime soon. Here are a few reasons why we still need to be worried. 

    1.The core inflation rate hit a 40 year high

    The reason economists look at the core inflation rate is to gauge how widely inflation has spread throughout the economy. They get the rate by subtracting the cost of energy and food from the index, but not because energy and food prices are unimportant. But because of their volatility. 

    The core inflation rate was 6.7% in September over the previous year – the highest it’s been in forty years. It increased 0.6% in September, which calculates to an annual rate of 7.1%. This alarming trend demonstrates just how ingrained inflation has become in our economy. 

    “But policy is only one piece of the puzzle. The other even more important piece is the community-level response.”

    “But policy is only one piece of the puzzle. The other even more important piece is the community-level response.”

     

    2. Energy prices are down — sort of — but food prices up

    One piece of good news is that energy prices went down in September. However, this is of little consolation because the prices are still 19.9% higher than last year and 49.7% higher than two years ago.

    There is no good news for food prices. You can’t go to the grocery store anymore without noticing the impact of inflation, and the CPI numbers bear this out. Food prices in general are up 11.2% over last year, or 16.3% higher than two years ago. As anyone can tell you, this is just the general price increase. Consumers can experience higher prices depending on what foods they buy. Cereals and bakery goods are up 16.2% from last year, and dairy products are up 15.9%

    Although economists like focusing on core inflation, energy and food prices are necessities that impact most people, especially lower income families and seniors living on fixed incomes.  

    3. Inflation isn’t going away anytime soon

    When reading the tea leaves, there aren’t many indications to expect inflation will abate any time soon. The recent droughts and man-made obstacles to food production, such as Russia’s war on the Ukraine and the irresponsible farm policy changes in the Netherlands, will impact food supply, which, of course, will have a direct impact on food prices and its availability. 

    As winter approaches the northern hemisphere, the demand for energy will increase. Here again, the war in Ukraine is culpable for disrupting energy supply to Europe. Moreover, not only did the Biden Administration fail to convince OPEC to increase production, but OPEC, which by the way includes Russia, is doing the exact opposite. They are cutting back on oil production. 

    In the meantime, current U.S. energy policy is more concerned about climate change than energy independence — that we were just two short years ago. The Administration’s release of petroleum from the Strategic Petroleum Reserve did help ease prices, but now the reserve is at the lowest level since 1984. How much lower will the Administration allow it to go?

    Because it impacts economic behavior, core inflation is even harder to solve. People – whether acting on behalf of their businesses or as an employee or as a consumer – incorporate their expectations of higher prices into their personal actions. This only fuels inflation more. Consider this fact: Although many businesses are experiencing higher revenue, their costs are also up. Importantly, and unfortunately, for many of them, their profits are down. All these factors exacerbate inflation while slowing economic growth, which harms everyone.  

    The way forward is through local communities

    Our nation’s inflationary environment is bad. Everyone knows that. The big question is what to do about it. On the policy front, we need a paradigm shift in Washington, D.C., to focus on enacting policies that encourage private investment, savings, and free trade while cutting back on deficit spending.

    But policy is only one piece of the puzzle. The other even more important piece is the community-level response.

    Here at the Georgia Center for Opportunity, our focus is primarily on these bottom-up solutions. Our neighbors — particularly those on the economic margins — are suffering from high inflation and need help. That’s where programs like BETTER WORK come in. They help the poor and impoverished get the skills and training needed to find a job and pursue a career, while ensuring they also find safe and affordable housing, reliable transportation, childcare services, and any other essential that’s needed.

    We also know that economic prosperity is challenging when your home life is in shambles. That’s why GCO prioritizes healthy family relationships through our Elevate workshops throughout the community and our Strengthen Families Program in local schools. On that note, prosperity is impossible without a good education, so we prioritize policies that will bring the broadest range of educational options to the most people, regardless of their background, income level, or zip code.

    The way back from our high inflationary environment is going to be a long trip. But with the right policies in place and with an attitude that prioritizes on-the-ground help for our neighbors, we can lighten the burden for our neighbors during the journey.



    Originally appeared in the Chicago Sun-Times

     

    Key Points

    • The rise in crime rates and the following fear around such crimes is impacting the stability of many communities.
    • Studies have repeatedly found that increases in violent crime reduce economic mobility and hamper private sector job growth.
    • A city can substantially reduce crime by focusing law enforcement, corrections and social service resources on a relatively small number of people.

    The rise and fear of crime

    Americans are more worried about crime than they have been in decades. A recent poll found that 8 in every 10 Americans say they worry about crime either “a great deal” (53%) or “a fair amount” (27%).

    This fear is driving businesses large and small out of cities and neighborhoods with rising crime rates. By abandoning these high-risk locations, these businesses take with them any job opportunities they provide to poorer residents.

    Local and state governments must focus on reducing violent crime, not just as necessary to protect human life but also because doing so is a prerequisite to real economic opportunity in poor communities.

    Increased concern about crime has followed a sharp increase in violent crime, especially homicides over the last six years. In 2021, 12 major cities saw their deadliest year on record. Chicago had its deadliest year in a quarter century.

    In recent comments to the Economic Club of Chicago, McDonald’s President and CEO Chris Kempczinski noted that out-of-control violent crime, homelessness and drug overdoses in Chicago were negatively impacting both McDonalds’ restaurant locations and corporate recruitment to the city. He’s committed to staying in Chicago, but other companies across the country are already closing down retail locations in areas experiencing surges in crime.

     

    Kevin had just climbed out of the prison system only to be faced with another challenge…finding work and seizing opportunity. Kevin’s inspirational drive to overcome his situation and to pursue opportunity reminds us of the need for systems that expand opportunity to all.

    Kevin had just climbed out of the prison system only to be faced with another challenge…finding work and seizing opportunity. Kevin’s inspirational drive to overcome his situation and to pursue opportunity reminds us of the need for systems that expand opportunity to all.

    Impact on Business

    Starbucks announced it would close 16 locations in Portland, Seattle, Los Angeles, Philadelphia and Washington, D.C., over safety concerns. Walgreens is closing five stores in San Francisco due to rampant crime. Small businesses from Seattle to Minnesota are citing crime as the reason they’re closing their doors.

    While large businesses may not be the most sympathetic victims of the nation’s dramatic increase in violent crime, the people this crime hurts the most continue to be those from the most socially isolated and economically disadvantaged communities.

    Studies have repeatedly found that increases in violent crime reduce economic mobility and hamper private sector job growth. One study found that changes in the rates of violent crime substantially impacted the economic mobility of children raised in low-income families. As crime went up during childhood and adolescence, their level of economic mobility went down.

    Another study found that increases in violent crime cause existing businesses to downsize and discourage new businesses from entering the marketplace. No amount of economic incentives the government can provide will entice businesses to open in dangerous areas with low-recruitment potential. As a result, increasing crime will reduce the economic opportunities for lower-income residents.

     

    A solution exists

    Thankfully, while the problem of violent crime is large, it is not insurmountable. But reversing these trends will require understanding how we got here and what works to reduce crime.

    Don’t expect crime to abate with the pandemic. Those who yearn for “pre-pandemic” crime rates ignore that in many cities, these increases began in 2015 when American cities had a more than 10% increase in murder over 2014, and 2016 saw another 8% increase on top of that. Gangs continued to operate unabated during government-ordered lockdowns, and given the retaliatory nature of so much street violence, increased violent crime often begets increased violent crime.

    Next, crime, especially serious and violent crime, is concentrated among a very small number of gang members in any given city. Typically, about 0.6% of a city’s population is involved with these kinds of groups, while they’re responsible for 50% of a city’s homicides. It also tends to concentrate around certain areas; about 3% to 5% of specific addresses are responsible for about 50% of a city’s crime.

    This means a city — even one plagued by gang violence like Chicago — can substantially reduce crime by focusing law enforcement, corrections and social service resources on a relatively small number of people. Strategies that do so have substantially reduced homicides from Boston, Massachusetts, to Stockton, California.

    Failure to do so will only make our poorest neighborhoods poorer. Large and wealthy corporations like Citadel can leave for greener and safer pastures with relative ease. But failure of local and state officials to rein in violent crime will leave those with no means to leave with fewer opportunities to improve their lives.

     

     

    Key Points

    • As of June, 35 states and D.C. have not recovered the number of lost jobs
    • The labor force has shrunk despite population growth.
    • Its stated goal of the Federal Reserve remains the same–to reduce inflation to its 2% target, meaning it will take steps to prevent the price level from coming back down. This bad policy goal will burden the working class and the poor and retired persons the most.

    It may not matter if federal policy does not change.

    We’ve seen some back-to-back encouraging news within the last few weeks. The Employment Situation Report for July showed that the United States finally recovered the number of its lost jobs from the start of the pandemic, and the Consumer Price Index (CPI) inflation rate for July was essentially zero. But digging a little deeper to put the news into perspective reveals real concerns that stagflation will not end anytime soon.

    The States Who Are Driving the Job Recovery

    On the jobs front, yes, it’s true we’ve recovered the number of lost jobs benchmarked to February 2020 before the drastic impact on the labor market from COVID-19. This indicates we’re on the mend, but the job recovery process has not been the “V” shape hoped for at the beginning of the pandemic, one that would have meant a robust job recovery. 

    Two-and-a-half years later, the civilian non-institutionalized population base that feeds the labor force grew by 4.8 million. Our own ARIMA Model job forecast shows we are approximately 5.8 million jobs short of where we would have been had the pandemic not happened. 

    But this is not the case for all 50 states. Astoundingly, four states—Montana, Utah, Idaho, and Wyoming—have matched or nearly matched their pre-pandemic ARIMA Model forecasts, effectively eliminating any impact from the pandemic on the number of lost jobs. 

    In the meantime, the national job recovery to pre-pandemic levels is driven probably by just 15 states who already recovered their number of lost jobs prior to the nation as a whole. These states are Utah, Idaho, Texas, Montana, North Carolina, Georgia, Florida, Tennessee, Arizona, South Dakota, Colorado, Arkansas, Indiana, and Nevada. 

    As of June, the remaining 35 states and D.C. have not recovered the number of lost jobs. We have to wait another week before we know whether another state slipped onto the list of leading states that helped tip the balance for the national July data. 

    According to our analysis, a common feature of the leading states is that they tend to have policies that value economic freedom more than the other states do. Incidentally, and for explanatory reasons and not for the purpose of getting political, all but three of the 15 leading states have given political control to the governor’s office and both chambers of the state legislature to the Republican Party.

    Jobs Versus People Employed 

    One problem with job data is that the dataset allows for double counting. If we want to count the number of people employed, it paints a different picture. 

    The Current Population Survey shows the U.S. is still more than half a million workers short when compared to February 2020. In fact, we had fewer employed persons in July than March of this year, using seasonally adjusted data. 

    The reason is that the labor force has shrunk despite population growth. This can be seen with the 62.1% labor force participation rate that is more than a percentage point below where it stood in February 2020.

    This means that the 3.5% unemployment rate—which now matches its pre-pandemic level—is misleading. The shrinkage of the labor force is distorting the meaning of the metric.

    Taken together on a national scale, jobs have recovered but the number of employed persons has not. This can mean only one thing. More people are working multiple jobs to make ends meet. 

    Inflation versus the Price Level

    July’s CPI ever-so-slightly decreased. It ticked down 0.2% at an annualized rate–a welcome change from the past 25 months. Just to keep this in perspective, the price level nonetheless increased 14.1% since the start of the pandemic. But there is no need to tell this to average consumers who have been feeling it in their pocketbooks. 

    Disturbingly, the Federal Reserve shows no interest in doing something about the elevated price level–and who isn’t even discussing it. Its stated goal remains the same–to reduce inflation to its 2% target, meaning it will take steps to prevent the price level from coming back down. This bad policy goal will burden the working class and the poor and retired persons the most.

     

    stagflation

    “Disturbingly, the Federal Reserve shows no interest in doing something about the elevated price level–and who isn’t even discussing it. Its stated goal remains the same–to reduce inflation to its 2% target, meaning it will take steps to prevent the price level from coming back down. This bad policy goal will burden the working class and the poor and retired persons the most.”

    “Disturbingly, the Federal Reserve shows no interest in doing something about the elevated price level–and who isn’t even discussing it. Its stated goal remains the same–to reduce inflation to its 2% target, meaning it will take steps to prevent the price level from coming back down. This bad policy goal will burden the working class and the poor and retired persons the most.”

    Fiscal and Regulatory Policy

    The Federal Reserve does not stand alone with its bad policy. Congress and the Administration are just as guilty, if not more so.

    Excessive fiscal spending also drives up the price level. Worse, increasing business taxes will pull  resources from businesses. These resources are needed to produce goods and services that we all use and enjoy. It also enables these very same businesses to pay workers and compensate investors, and it leads to more economic growth and prosperity. Likewise, more excessive regulatory restrictions have similar negative effects on people and the economy.

    Increasing business taxes and regulating businesses even more at this time will not help keep prices down. Rather, a good portion of these higher costs will be passed onto consumers.  And they will be passed on to consumers to the degree that individual businesses are able to do so. If businesses can’t pass all or even some of those costs on to consumers, then they will be forced to make more difficult decisions, such as cutting back on the number of employees or suspending pay raises to employees. Profits will clearly suffer that may cause a few businesses to scale back or exit the industry altogether. These consequential actions all aggravate stagnation. Add in the price increases and we get more stagflation, not less.

    Unfortunately, the President just signed into law the erroneously named Inflation Reduction Act that will do nothing about inflation, but it will hike business taxes and increase regulations that will only worsen the economic situation. 

    Congress and the Administration need to start following the lead from the states who are doing it right. Only pro- growth policies relying on innovation and production organically sprouted from within the economy will help us out of this mess, and it won’t work if politicians think that means taking money from successful businesses or imposing new mandates on others or picking the winners and losers in the economy.



     

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