Federally funded San Diego County program operated by Jewish Family Service of San Diego combines grant with research study. Application window closes Sunday.
, a research and charity nonprofit co-founded by another UC San Diego economist, Paul Niehaus, which lets people send cash to people abroad who are living in poverty and lets academics study the effects of such donations.
“The intent is we want the families to prioritize their needs,” said Alberto Banuelos, the assistant director of the county’s Health and Human Services Agency’s self-sufficiency services department. The county’s study, he added, hopes to see how people “prioritize what their biggest need is” and then “choose how to expend these funds.”
One concern with giving people thousands of dollars might be inflation — not locally, but on a larger scale. The RAFT program “sounds too small to have a noticeable impact on inflation locally. In aggregate across the country, however, the programs state and local governments have used to dispense the nearly $1 trillion in assistance they received from the federal government are likely to have had an appreciable impact,” he said.
These figures are for median-income households. Lower-income households may pay more of their earnings, proportionally, for essentials like housing and food. “You’re really seeing the biggest gains in the sectors that shut down during the early days of the pandemic,” Molly Kinder, a fellow with the Brookings Institution, told. But gains, she added, only benefit some types of workers. “Low-wage essential workers who kept going to work, whether at a grocery store or retail or at a nursing home,” haven’t seen significant wage increases, she said.
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