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Poverty Is Not Lack of Money

Poverty Is Not Lack of Money

Last updated on: August 5, 2025 at 8:35 am by William Droel

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Poverty Is Not Lack of Money 2025-08-05T08:35:11-06:00 William Droel

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Poverty Is More Than Lack of Money by Bill Droel

Unconditional cash assistance to the poor may not do any good. That is a conclusion from a rigorous study, Baby’s First Years (www.babysfirstyears.com).

An experiment, supervised by eight researchers, gave $333 per month for 48 months to 1,000 needy families from the Twin Cities, Omaha, New Orleans and New York City. A control group received $20 per month. Results were additionally compared with the population at large. (No government money was involved.)

The experiment yielded no evident improvement in children’s language skills or their cognitive development. Neither the child’s health nor social and emotional behavior was any better than in families lacking the subsidy. The parents receiving the $333 experienced no reduction in stress. Most of these parents were single mothers. Most were Black, Mexican-American or recent immigrants.

The researchers were disappointed in the lack of improvement because they had read positive accounts about the federal cash subsidies given during the worst of Covid-19.

Contrary to some interpretations, it is important to point out what the study does not show:

There is no evidence whatsoever in this study nor in many others that Medicaid, SNAP and other federal programs are worthless.
There is no evidence in this study that the participants were lazy or that they spent the cash foolishly.
There is no evidence in this study that a work requirement would improve family life.

Critics do raise reasonable questions about the study:

Might inflation and higher rents make its 2025 outcome less encouraging than the reported results of the earlier Covid-19 subsidies?
Might the sample size have been too small, or the duration of the benefits too short, or might measurement of the children look better as those children grow older?

Columnist David Brooks (N.Y. Times, 8/3/25) refers to the First Years study to conclude that “if a child’s social order is broken, federal money will not help.” To properly flourish, he continues, “all humans need to grow up in a secure container, within which they can craft their lives. The social order consists of a stable family, a safe and coherent neighborhood, a vibrant congregational and civic life, a reliable body of laws, a set of shared values that neighbors can use to build healthy communities and a conviction that there exists moral truth.” Instead, looking at our society we “see families splinter or never form, neighborhood life decay, churches go empty, friends die of addictions, downtowns become vacant, a national elite grow socially and morally detached.”

How to combat poverty? We must refute our culture’s presumption that all problems are caused by an individual’s defect. It is equally erroneous to assume that most individuals have the capacity to improve if they simply so choose. “To understand the cause of poverty we must look beyond the poor,” writes Matthew Desmond in Poverty, By America (Penguin Random, 2023).

The most significant factor for a child to have a “secure container” is a two-parent household. It can be any configuration—two married parents, either different gender or the same gender, likewise two stable unmarried parents or foster parents or grandparents. But a simplistic conclusion about single parenthood is wrong. If, for example, everyone was to get married, poverty would not disappear. Single parenthood is not in itself “a major cause of poverty in America,” as Desmond puts it. Marriage alone does not create the orderliness that children need. Marriage is a big positive for families in the context of other securities. When the poor have real economic opportunity and other buffers, “marriage typically follows,” Desmond concludes.

The other significant factor for a child’s security and growth is parental involvement in their education, no matter in this case if that parent is single or in a stable relationship. Thus, society’s job is to allow parents the wherewithal to supervise homework and to meaningfully interact with teachers. Society withers when economic inequality with its large sector of precarious employment makes a healthy home life too difficult. Our economy and culture must thus be reformed in ways that permit parents to network with one another through school sports or student clubs, through relational congregations, through effective community organizations, through bona fide unions and the like.

Droel is editor at National Center for the Laity (PO Box 291102, Chicago, IL 60629).

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