This article was originally published by Stand Together Foundation.
When the enhanced Child Tax Credit (CTC) was enacted last year, it was widely touted as the answer to child poverty. The policy gave families up to $3,600 per child, depending on age, sent via check every month. The hope was that this money would enable millions of families to build a better life and even flourish.
It didn't pan out—at least, not in the way people hoped.
In a recent article published by Forbes, Evan Feinberg explores how cash assistance falls short of addressing the root causes of child poverty. With the enhanced Child Tax Credit (CTC) enacted in 2021 and ended in January 2022, we saw more than 3 million children lifted out of poverty and then slide right back into it.
Some are making the argument that the government sending parents $3,600 per child every month is the permanent fix we need. "We've made people financially better off but haven't fundamentally helped them lead better lives," says Evan.
It's time to shift our focus. We need to build a better social economy. After 50-plus years of the top-down approach, it's tempting to think there's no other way. Can a wide variety of efforts really address the countless barriers related to poverty? Can a host of smaller, more tailored initiatives really make a dent in such a big problem?
