Understanding the Effects of Windfalls
From 2020–2021, the unique economic impacts of the COVID-19 pandemic prompted policymakers to implement direct-cash policy solutions, including the expanded Child Tax Credit (CTC) and stimulus checks, to boost individuals’ and families’ financial security.
Despite the clear social and economic benefits of these payments, however, false narratives—rooted in racist conceptions of irresponsible spending habits—prevailed, and contributed to policymakers’ decision to cut the expanded CTC.
In a new report, Katherine Rodgers, Sydney A. Grissom, Lucas Hubbard, and Roosevelt senior fellow William “Sandy” Darity, Jr., examine evidence that debunks those myths and sheds light on the positive benefits people experience from large windfalls, like lottery wins and inheritances.
As Roosevelt’s Shahrzad Shams explores in a blog post about their analysis, the evidence on cash transfers has a lot to say about reparations.
Read the full report, and coverage in MarketWatch.
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