{"id":15162,"date":"2024-10-27T15:31:36","date_gmt":"2024-10-27T15:31:36","guid":{"rendered":"https:\/\/lonecandle.com\/?p=15162"},"modified":"2024-10-27T15:31:36","modified_gmt":"2024-10-27T15:31:36","slug":"do-the-benefits-of-the-expanded-child-tax-credit-actually-fade-with-time","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=15162","title":{"rendered":"Do the benefits of the expanded child tax credit actually fade with time?"},"content":{"rendered":"\n

“By sending unconditional monthly checks of up to $300 per child to the nation\u2019s poorest families \u2014 including those with little to no income who had typically been excluded<\/a> from such programs \u2014 the \u201cchild allowance\u201d lifted 2.1 million<\/a> children out of poverty who would\u2019ve otherwise been left behind.<\/p>\n\n\n\n

Arguments against such programs that give unconditional cash usually assert that it\u2019ll drive low-income people to quit their jobs, ultimately harming the economy. But research found little to no drop<\/a> in employment rates as a result of the expanded CTC. Yet despite a flurry of support<\/a> from prominent economists and recipients<\/a> alike, politicians failed to reach an agreement to make the temporary expansion permanent, and Congress let it expire<\/a> at the end of 2021.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

“a new working paper<\/a> from Elizabeth Ananat<\/a> and Irwin Garfinkel<\/a>, two economists at Columbia University. Expanding on work they first published in 2022<\/a>, their research surveys long-run cash and quasi-cash transfer programs (like food stamps) in the US in an effort to predict the overall effects of a child allowance over the very long run. Instead of the grim and jobless future forecast by expanded CTC critics, they find that a future shaped by a permanent child allowance is well worth the investment.<\/p>\n\n\n\n

Ananat and Garfinkel found that the total long-run benefits to society of making a child allowance permanent outweigh the costs by nearly 10 to 1.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

“Their promise of a 10 to 1 return is, frankly, massive. For every $100 or so billion the child allowance would cost the government each year, society would reap additional long-term benefits of about $929 billion. Those dollars represent benefits like improved child and parent health and longevity, higher future earnings for children, and reduced crime and health care costs. There would be an effect from the small dip in employment that their calculations predict, and a resulting decrease in tax revenue \u2014 but it would amount to just $2.4 billion. That\u2019s a drop in a bucket overflowing with almost a trillion dollars in benefits.<\/p>\n\n\n\n

But the nuances of such long-term returns can be difficult to convey. \u201cA little bit shows up in the first few years in the form of reduced [child abuse and neglect], reduced hospitalizations, and those sorts of things,\u201d said Ananat. \u201cBut most of it doesn\u2019t show up until the kids grow up. So that requires a very patient type of investor.\u201d”<\/p>\n\n\n\n

https:\/\/www.vox.com\/future-perfect\/371858\/child-tax-credit-poverty-economics-future-benefits<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“By sending unconditional monthly checks of up to $300 per child to the nation\u2019s poorest families \u2014 including those with little to no income who had typically been excluded from such programs \u2014 the \u201cchild allowance\u201d lifted 2.1 million children out of poverty who would\u2019ve otherwise been left behind.<\/p>\n

Arguments against such programs that give unconditional cash usually assert that it\u2019ll drive low-income people to quit their jobs, ultimately harming the economy. But research found little to no drop in employment rates as a result of the expanded CTC. Yet despite a flurry of support from prominent economists and recipients alike, politicians failed to reach an agreement to make the temporary expansion permanent, and Congress let it expire at the end of 2021.”<\/p>\n

…<\/p>\n

“a new working paper from Elizabeth Ananat and Irwin Garfinkel, two economists at Columbia University. Expanding on work they first published in 2022, their research surveys long-run cash and quasi-cash transfer programs (like food stamps) in the US in an effort to predict the overall effects of a child allowance over the very long run. Instead of the grim and jobless future forecast by expanded CTC critics, they find that a future shaped by a permanent child allowance is well worth the investment.
\nAnanat and Garfinkel found that the total long-run benefits to society of making a child allowance permanent outweigh the costs by nearly 10 to 1.”<\/p>\n

…<\/p>\n

“Their promise of a 10 to 1 return is, frankly, massive. For every $100 or so billion the child allowance would cost the government each year, society would reap additional long-term benefits of about $929 billion. Those dollars represent benefits like improved child and parent health and longevity, higher future earnings for children, and reduced crime and health care costs. There would be an effect from the small dip in employment that their calculations predict, and a resulting decrease in tax revenue \u2014 but it would amount to just $2.4 billion. That\u2019s a drop in a bucket overflowing with almost a trillion dollars in benefits.<\/p>\n

But the nuances of such long-term returns can be difficult to convey. \u201cA little bit shows up in the first few years in the form of reduced [child abuse and neglect], reduced hospitalizations, and those sorts of things,\u201d said Ananat. \u201cBut most of it doesn\u2019t show up until the kids grow up. So that requires a very patient type of investor.\u201d”<\/p>\n

https:\/\/www.vox.com\/future-perfect\/371858\/child-tax-credit-poverty-economics-future-benefits<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[1959,625,1236,169,1193,150,1474],"class_list":["post-15162","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-birth-rate","tag-births","tag-child-tax-credit","tag-children","tag-government-spending","tag-welfare","tag-work"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/15162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15162"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/15162\/revisions"}],"predecessor-version":[{"id":15163,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/15162\/revisions\/15163"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}