The results show the power of cash transfers to reduce homelessness.
Ray, a man in his 50s, used to live in an emergency homeless shelter in Vancouver, Canada. Then he participated in a study that changed his life. He was able to pay for a place to live and courses to prepare him for his dream job.
The newly published, peer reviewed PNAS study, conducted by the charity Foundations for Social Change in partnership with the University of British Columbia, was fairly simple. It identified 50 people in the Vancouver area who had become homeless in the past two years. In spring 2018, it gave them each one lump sum of $7,500 (in Canadian dollars). And it told them to do whatever they wanted with the cash.
“At first, I thought it was a little far-fetched — too good to be true,” Ray said. “I went with one of the program representatives to a bank and we opened up a bank account for me. Even after the money was there, it took me a week for it to sink in.”
Over the next year, the study followed up with the recipients periodically, asking how they were spending the money and what was happening in their lives. Because they were participating in a randomized controlled trial, their outcomes were compared to those of a control group: 65 homeless people who didn’t receive any cash. Both cash recipients and people in the control group got access to workshops and coaching focused on developing life skills and plans.
Separately, the research team conducted a survey, asking 1,100 people to predict how recipients of an unconditional $7,500 transfer would spend the cash. They predicted that recipients would spend 81 percent more on “temptation goods” like alcohol, drugs, or tobacco if they were homeless than if they were not.
The results proved that prediction wrong. The recipients of the cash transfers did not increase spending on drugs, tobacco, and alcohol, but did increase spending on food, clothes, and rent, according to self-reports. What’s more, they moved into stable housing faster and saved enough money to maintain financial security over the year of follow-up.
“Counter to really harmful stereotypes, we saw that people made wise financial choices,” Claire Williams, the CEO of Foundations for Social Change, told me.
The study, though small, offers a counter to the myths that people who become poor get that way because they’re bad at rational decision-making and self-control, and are thus intrinsically to blame for their situation, and that people getting free money will blow it on frivolous things or addictive substances. Studies have consistently shown that cash transfers don’t increase the consumption of “temptation goods”; they either decrease it or have no effect on it.
“I have been working with people experiencing homelessness as a family physician for years and I am in no way surprised that the people who received this cash used it wisely,” Gary Bloch, a Canadian doctor who prescribes money to low-income patients, told me.
“It should be fairly self-evident by now that providing cash to people who are very low-income will have a positive effect,” he added. “We have seen that in other work (conditional cash transfer programs in Latin America, guaranteed annual income studies in Manitoba), and I would expect a similar outcome here.”
What’s more, according to Foundations for Social Change, giving out the cash transfers in the Vancouver area actually saved the broader society money. Enabling 50 people to move into housing faster saved the shelter system $8,277 per person over the year, for a total savings of $413,850. That’s more than the value of the cash transfers, which means the transfers pay for themselves.
The research team also looked at what’s effective at changing the public perception about cash transfers to homeless people. They found that pointing out how cash transfers actually produce net savings for society, as well as showing how homeless people spend the money, are both effective ways to counter stereotypes among the public.
“People think that the status quo is cheap, but it’s actually incredibly expensive,” Williams said. “So why don’t we just give people the cash they need to transform their lives?”
The benefits — and limitations — of giving people free money
Williams developed the idea for experiment, called the New Leaf Project, when her co-founder sent her a link to a 2014 TED talk by the historian Rutger Bregman titled “Why we should give everyone a basic income.” It argued that the most effective way to help people is to simply give them cash.
The general idea behind basic income — that the government should give every citizen a monthly infusion of free money with no strings attached — has gained momentum in the past few years, with several countries running pilot programs to test it.
And the evidence so far shows that getting a basic income tends to boost happiness, health, school attendance, and trust in social institutions, while reducing crime. Recipients generally spend the money on necessities like food, clothes, and utility bills.
But Williams and her collaborators decided that rather than give people monthly payments, they’d give one big lump sum. “The research shows that if you give people a larger sum of cash upfront, it triggers long-term thinking,” as opposed to just keeping people in survival mode, Williams explained. “You can’t think about maybe registering for a course to advance your life when you don’t have enough money to put food on the table. The big lump sum at the front end gives people a lot more agency.”
That’s what it did for Ray. In addition to getting housing, he used the cash transfer to take the courses he needed to become a front-line worker serving people with addictions. “Now I can work in any of the shelters and community centers in the area,” he told me, adding that receiving a cash transfer had felt like a vote of confidence. “It gives the person their own self-esteem, that they were trusted.”
Not everyone was eligible for a cash transfer, however. The study only enrolled participants who’d been homeless for under two years, with the idea that early intervention most effectively reduces the risk of people incurring trauma as a result of living without a home. And people with severe mental health or substance use issues were screened out of the initiative. Williams said this was not out of a belief that there are “deserving poor” and “undeserving poor” — a woefully persistent frame on poverty — but out of a desire to avoid creating a risk of harm and to ensure the highest likelihood of success.
“If there was null effect from people receiving the cash, from an investor perspective it could be seen as a ‘waste of money’ because it didn’t actually demonstrate impact in somebody’s life,” Williams said. “We just wanted to start small, and the idea is that with subsequent iterations we’ll start relaxing those parameters.”
She also said it was a difficult decision to include a control group of people who wouldn’t receive any cash, but ultimately, the control group was deemed necessary to prove impact. “We knew that we needed the rigor, because people would be skeptical about giving people cash. We wanted that evidence base that can assuage some of people’s concerns when they want to see the hard facts,” she told me.
Going forward, the research team plans to try replicating this study with a much bigger sample of people, and expanding it to other cities in Canada and the US. Based on feedback from study participants and a Lived Experience Advisory Panel — a group of people who’ve experienced homelessness — the team will offer a new array of non-cash supports to both the cash recipients and the control group, including a free smartphone.
The team also hopes to work with other populations, like people exiting prison and people exiting sex work. To Williams, the time feels ripe.
“I think the pandemic has really softened people’s attitudes to the need for an emergency cash payment when people fall upon hard times,” she said.
In fact, Canadian lawmakers are currently considering a bill that would create a national framework for a guaranteed income to cover basic living expenses for people over age 17. That would include temporary workers, permanent residents, and refugee claimants.
It’s worth noting that cash on its own probably isn’t enough to end homelessness.
“While I have no problem with providing cash to people who need money, the solution to homelessness is housing,” Bloch told me. “Especially in a city like Vancouver where housing supply is low and rents are astronomical, it will be very hard to sustain a homelessness intervention without offering long-term affordable housing. I would not want to see these findings used to take pressure off the critical need to provide both long-term affordable housing and long-term income security.”
That said, Bloch added, “If this study serves to counteract some people’s perception that people who are homeless and/or low-income can’t be trusted with extra income, that’s great. It’s a myth we need to bury once and for all.”
Update, September 2, 8 am: This story was originally published on October 27, 2020, and has been updated to include details about the peer-reviewed study on the New Leaf Project, and about Canada’s guaranteed income bill.
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Airports are a nightmare. What about driving instead?
The theory of relativity is felt most strongly in a vehicle. A broken AC, busted speakers, or your brother-in-law’s stories from his frat days can make the miles pass so slowly, you wonder if the universe needs a change of battery. Yet, sitting shotgun with the love of your life with a perfect windows-down breeze, it feels like you could drive for days.
There’s only so much you can control inside a car, and how much you prepare will make all the difference in how your ride feels. So if you’re planning a long car trip and the road ahead feels daunting, we’ve gathered some tips from experts to help. I personally became an expert last year, by surviving, nay, thriving, on a 10-day trip moving from one corner of the country to the other.
Here’s how you can put more joy into travel on the open road.
Why the car?
The open road has become the shinier option again as airports around the country descend into madness. The shortage of 32,000 commercial pilots, mechanics, and air traffic controllers is estimated to cause issues for the next 10 years.
Even if you avoid the long security lines and the nearly one out of every four flights that are delayed, you’re packed tight with The Others, unable to move your elbows without having to apologize. Of course a plane is faster than a car, but if you factor in the 90-minute arrival window, drive to the airport, luggage wait time, and driving to your destination, it may be closer in duration than you might initially think.
In your own car, there’s a looser limit on what you can pack, and you can take more than a three-day supply of shampoo. Plus, driving yourself can save you the trouble of needing to book a rental car for your destination.
In a survey by United Tires, almost nine out of 10 people said road trips are “one of the best ways for families to bond.” Or kill each other. Let’s help you make it the first one.
Primp and prep your ride
“Do we need seat cushions?” I texted my best friend.
“No,” she responded so quickly that I was sure she knew my Amazon cart was full of anxiety purchases. She would soon fly to Seattle to drive with me and all my worldly possessions 2,993 miles to Florida, across the street from her house, where I was moving. I was determined to make sure that the 43 hours we would spend in the car together would not be a stress test of our friendship.
I was in disaster-prevention mode. How could we keep the vibe high?
I tried to think of anything that could be mildly annoying. My first thought was the sun. For this, I got two sets of sun shades, and they were the MVP of the trip. The first set expanded on wire rims and stuck to the glass, and were see-through. They gave us shade, but didn’t black out the outside world entirely.
The second set came in the shape of each window of the vehicle, and used magnets to stick to the frame, providing a complete opaque box. This made security easier, with no one being able to see in the car. It also made it into a dressing room when needed.
I purchased seat belt covers, so that in our summer tank tops, we didn’t have rough straps digging into our collarbones. Even to this day, when people get in my car, they feel them and say “Ooh.”
I probably didn’t need the padded steering wheel cover, but you know what, that breathable microfiber was a lifesaver on my sweaty hands driving at noon in the Nebraska sun.
The glove compartment had reading material, wipes, and napkins. I made sure a cooler was accessible, and to keep things exciting, I brought bougie treats to ration out across the journey, from smoked salmon to a ginger dark chocolate bar. We packed reusable plastic plates and bamboo cutlery to reduce waste.
I also organized the hell out of the car. I have one of those deep center consoles, and I put mini Tupperware in there to separate and store coins, cords, and various sauce packets I’ve collected, a habit I became more serious about since I heard about that man trapped in his snowed-in vehicle who survived five days on Taco Bell hot sauce. My best friend mocked this sauce container, until she got a gas station sandwich on the very last day that, lo and behold, lacked both mayo and mustard, two mainstays stocked in the sauce container.
Safety first
If you’re handy, you can check out your car yourself. Look at the brakes, tires, and fluids. But if you’re anything like me, you should get a professional thumbs up.
“If you’re maintaining your car properly, you may not need to take it to a mechanic or a technician to have them take a look at it,” said David Bennett of AAA, an ASE master certified technician with more than 35 years in the industry. Be sure to head to the mechanic shop well in advance of your road trip — don’t take your car in the week of or day before your trip. “If something’s wrong, and they have to order a part, you want to give them time to be able to do that,” Bennett said.
AAA’s emergency kit list includes a flashlight and extra batteries, first-aid supplies, drinking water, non-perishable snacks for both people and pets, car battery booster cables, emergency flares or reflectors, a rain poncho, a basic tool kit, duct tape, gloves, and shop rags or paper towels. May I also recommend peanut M&Ms?
Bennett also suggests bringing a blanket or towel to lie down on in case you need to look under the car, and gloves in case things get messy (or in case the chocolate melts).
Other safety tips include a paper map, because you never know when GPS can fail. And also, please, get a phone holder that actually holds the phone. Not the one you bought off Instagram with a suction cup that couldn’t hold a pouf to a shower tile. Who wants to spend time searching the floor of the passenger side for your iPhone? It’s as annoying as it is unsafe.
Speaking of emergencies, let’s talk music. Download your playlists in advance so you don’t lose your flow. I have a playlist called “Belting,” which is my favorite list to sing, and you may create more harmony in the car if you use Spotify’s Blend feature, which creates playlists that pull from each person’s taste.
It’s a great idea to discuss the entertainment ahead of time. If you run out of things to talk about, you might have lined up a podcast you both want to check out. If you’re not lucky enough to be traveling with someone you’re particularly close to, it might be a good idea to fill the air with an audiobook.
“If you’re traveling with a friend, have them bring their favorite album, or their favorite mix or whatever,” said Bennett, “and see if maybe you’ll learn something new.”
Plan for the what-ifs
While you’re out there on the open road, you still have to think about being prepared.
“I would not let your gas tank fall below a quarter of a tank at any point in time,” Bennett said. “Because you never know when you could get stuck. We’ve seen it in wintertime. We’ve seen it in summertime.”
It’s only when people are stuck for hours that they usually remember that gas is their entire power source on the road. You need gas for heating and for cooling, as well as the radio and even to charge your phone.
He also suggested packing a cooler with drinks and food, evoking the 2022 I-95 shutdown in Virginia that had some people locked in their vehicles overnight.
“Plan ahead for the what-ifs,” he said.
Aside from entertainment, it’s good to come with at least a loose route and stopping plan. The king of the road trip apps in my opinion is Roadtrippers, which allows you to create a trip and search along the route for everything from places to camp to restaurants to mechanics. You can add stops to your trip, and get automatic estimated drive time and gas cost. You can add collaborators to share the trip, so that your passenger has a way to find out how much time you have left without interrupting your high notes during “Bohemian Rhapsody.”
Roadtrippers has the option to get offline maps, but it’s still a good idea to bring a printed map for any location you’re planning to drive through.
Who are you wearing?
“It’s all about the clothing,” said Brandon Schultz, contributor to Fodor’s Best Road Trips in the USA. “With so much time spent sitting in a small space, you’ve got to be comfortable.”
He suggests loose-fitting clothes, and long sleeves and pants whenever possible to keep you warmer when it’s cold outside, but also keep you comfortable if the air conditioner is on in summer. He also mentioned that the extra padding with layered clothing helps pad your joints when jostling with the car doors, consoles, and each other.
But it’s also important to not overpack.
“I’m a chronic overpacker, so I know it’s not easy, but you will spend a lot of time cooped up in a vehicle, wishing for more space,” said Schultz. “Luggage, entertainment, snacks — it all eats up the little room you already have, so bring less and thank yourself later.”
Consider your personal security
Kay Kingsman, who writes The Awkward Traveller, started road tripping as an Army brat, making drives like Alabama to California with every move.
She loves the freedom of the road, the fact that you can be spontaneous, turning down any side road you want. But, as a Black woman, she also must consider her safety. Many cities have Black Facebook groups that she uses as a resource for road tripping.
“If I’m driving somewhere I’ve never been, I will post in that group asking if there’s any particular spots or towns along the drive that I should avoid stopping through (aka sundown-esque towns) just for an added bit of reassurance in my drive from people in the area,” she said. It’s a sad reality, but drivers should always consider the safety of their route, surroundings, and destination.
Kingsman keeps a taser and pepper spray in her car just in case. And once, when she was followed for about an hour, even off an exit and into a parking lot, she was glad to have her dashcam.
If she’s traveling alone, she plans ahead so that she won’t have to stop for gas in the dark. With this, she travels by herself quite a bit, recently completing two months driving around 14 states in the southeastern US. “I usually do at least one good road trip a year,” she said, “if not more.”
Lessons from 10 days on the road
It helps to vary the style of travel from day to day. My best friend and I drove two long days, including one of 12 hours on the road, in order to make it for Tedeschi Trucks at Red Rocks. Then we rested for two days. We stayed with friends, and we stayed in a nice hotel. The trip felt like a flight of beer, but for cities. A taste of Park City, a sip of Nashville.
Make time for silliness. We pulled over for the world’s largest Czech egg, and we were not disappointed. Communicate about the goals for reaching the location and how much temporal padding to have; enough so that you can dally, but not so much that you stress out your co-pilots.
And with all the prep, the drive turned from a chore to an adventure, the miles under our tires practically the best part.
Paulette Perhach is a freelance writer and writing coach covering creativity, personal finance, business, life design, and travel.
The US added 187,000 jobs over the last month. It’s more than expected.
In August, US job and wage growth slowed down and unemployment was up, according to the US Bureau of Labor Statistics. While that might not be great news for workers — as the unemployment rate is now up to 3.8 percent from 3.5 percent — it’s a signal that the Federal Reserve’s plan to get inflation under control and avert a recession appears to be working.
That’s because the Fed sees high job and wage growth as a contributor to inflation: “The reduction in average job and wage growth is exactly what the Federal Reserve wants to see,” said Dante DeAntonio, senior director of Moody’s Analytics. “The Fed largely views the labor market as the most important battleground in its fight against above-target inflation.”
The US added 187,000 jobs over the last month. It’s more than expected, but it’s still below the key figure of 200,000 — a number that had not been crossed for 29 consecutive months before June. Hourly earnings rose 4.3 percent, which is still above wage growth at this time last year. DeAntonio said that he expects wage growth to fall in the next few months. Overall, he said, the Fed would like to see wage growth at 3.5 percent or lower.
President Joe Biden touted the numbers during an address at the White House Friday. He’s been trying to invoke “Bidenomics,” a term encompassing his vision for the US economy, as a selling point for his 2024 reelection campaign — and as a weapon against his Republican rival, former President Donald Trump.
“It wasn’t that long ago that America was losing jobs,” Biden said. “In fact, my predecessor was one of only two presidents in history who entered his presidency and left with fewer jobs than when he entered.”
Financial analysts were looking to this jobs report for an indication as to whether the Fed will decide to raise interest rates again at its September meeting. It had raised rates in July after a brief pause to rate hikes the prior month — a move that some analysts thought unnecessary because the economy may have not had time to fully adjust to the previous 10 interest rate hikes over the last year, resulting in a potentially delayed contraction.
Last week, Fed Chair Jerome Powell said in a speech in Jackson Hole, Wyoming, that a “monetary policy response” might be necessary if high wage and job growth and labor force participation didn’t show signs of easing in August. He’s also repeatedly indicated that the Fed is looking to slow, but not stop, its aggressive approach to inflation until it reaches its 2 percent target rate.
“The monetary policy implications of the August employment report are relatively high” since this is the last major report on the labor market before the September Fed meeting, DeAntonio said.
The August jobs report brought welcome news in that respect, indicating the kind of cooling labor market that the Fed has been trying to reach.
Is a recession still unlikely?
The new jobs report doesn’t seem to change the US’s recession outlook. The labor market is still resilient, but not overheating to the level that the Fed seems likely to further raise interest rates and potentially plunge the economy into the two consecutive quarters of negative gross domestic product growth required to qualify as a technical recession.
Previously, a July Bloomberg survey of business economists found that a strong majority believed that the likelihood of a recession in the next year was 50 percent or less. Powell also said in July that he believed a recession was unlikely. His staff projected a “noticeable slowdown in growth starting later this year in the forecast, but given the resilience of the economy recently, they are no longer forecasting a recession,” he said.
Should the US avert a recession, any interest rate cuts still probably won’t happen until June 2024, Moody’s Analytics economist Matt Colyar previously told Vox.
“I think they are going to sit and wait for upwards of a year,” he said. “And that aligns with inflation slowing, the [Fed board of governors] feeling really confident that inflation is where they need it to be, if not trending toward it.”