New Trends in Social Welfare

The flagship U.S. social program aimed at reducing the wealth gap and aiding the poor is, of course, investment in education—a symbol of equal opportunity. The concept is to provide educational opportunities to the poor so they can work their way out of poverty and achieve social mobility through their own efforts. This effort has been driven not only by the government but also by many wealthy individuals who have donated funds to education. Of course, many wealthy individuals these days have begun to question whether the educational programs receiving their donations are truly the “key” to resolving the wealth gap.

Next are practical welfare programs, such as housing vouchers, food stamps, and Medicaid, that support the basics of human life. However, because there are many rules to follow under government policy and benefit caps, individuals cannot spend these funds as they please.

Consequently, new initiatives are being launched to give individuals a certain degree of freedom and the ability to rebuild their lives. The Nyandoro program, featured in The Washington Post, is a pilot project in which a nonprofit organization selected 20 Black single mothers living in public housing and gave each of them $1,000 per month for one year, asking them to manage the funds themselves. Of the 20 selected, 15 were employed, and 12 had borrowed emergency funds in the previous six months.

The findings were, first, that training on financial management is necessary before providing the funds. The majority did not know how to spend the money. Second, while the women who were already employed secured better jobs, those who were unemployed did not seek work simply because they were receiving $1,000. It is said that single mothers tend to stay home to raise their children unless they have a particularly good job. In any case, one of the 20 cases was highlighted as a success story. The article concluded with the heartwarming story of how she found a better job within a year, saved a little money, and bought a home with the help of government subsidies.

In my view, while the study has little academic value due to its small sample size and regional specifics, we should note that new concepts are being introduced into the current welfare system. Whereas in the past there was no individual choice under government-led programs, and the next stage offered some personal choice through vouchers, we can now say that the system is moving toward individual-led welfare programs. While I am not a social welfare expert, as someone who specializes in education policy—often viewed as part of social programs—I’ll venture to offer my analysis. As evidenced by this program's findings, the future direction will likely involve educating people on managing their finances so they can become self-sufficient and escape poverty.

Furthermore, there is Universal Basic Income (UBI), which expands the meaning of welfare. Among the current Democratic candidates in the U.S., Andrew Yang, who is of Chinese descent, has made UBI one of the central themes of his campaign, and Elon Musk has endorsed Andrew Yang’s proposal for UBI. The core idea is to give $1,000 a month to everyone and let individuals spend it as they see fit. In fact, this concept was first proposed in Northern Europe as a more advanced form of welfare, and in South Korea, Governor Lee Jae-myung has discussed it.

At first, it sounded absurd to me, too, but this is also a trend for the future. Mark Zuckerberg of Facebook and Elon Musk of SpaceX are strong advocates for UBI. The reason is that, as much as we may not want to admit it, the next generation will, in fact, face a lack of jobs. This is because hundreds of thousands of jobs will disappear due to AI and climate change. That’s why Zuckerberg and Musk argue that this guaranteed income is the only solution.

The world is unfolding in a way that is so different from what our generation experienced. This makes me keep wondering: Should we really continue to cling to this outdated education system established in the 19th century? Can we really dare to tell children that if they study hard, they’ll get into a good college and land a good job?

I’m grappling with these questions in this ever-changing world.

09/07/2019 by Dr. Lan Joo