Bloomberg's Anti-Poverty Plan-It Worked for Paris Hilton

By way of a very quick intro, Harry Siegel here, managing editor of Cities on a Hill, a Manhattan Institute website and blog about American cities. We're going to be cross-posting New York-centric entries at Room 8, whose readers might also be interested in out latest featured essay on job creation and the creative class by Room 8's own Larry Littlefield.

On, then, to what's the matter with Mayor Mike's poverty plan—Unfortunately, Mayor Bloomberg's big new idea to help the poor looks an awful lot like the billionaire once again buying political support by recycling failed ideas. The Times, of course, sees it otherwise, editorializing in its news dispatch that "the effort is classic Bloomberg in that it emphasizes nontraditional solutions and enlists the private sector to tackle problems that have historically vexed governments."

The dispatch goes on to claim that

The administration’s efforts would place an emphasis on rewarding good behavior and promoting self-sufficiency. Officials plan to spend $42 million annually on the tax credit, $25 million to reward actions like attending schools or prenatal education classes, and $11 million to help poor adults save money and learn sound financial practices.

If only dignity and self-sufficiency were so easily achieved by giving people free money. See: The Saudi Royalty and Paris Hilton. That giving the poor the material circumstances of the better-off and expecting them to then behave the same way has been rather definitively disproved over the last 60 years, since projects became a four-letter word, seems to have escaped the mayor’s notice, or at least his interest.

The Times reports that:

The effort would involve the creation of a new city office that would operate in part like a philanthropic foundation and in part like a venture capital company. The program, called the Center for Economic Opportunity, would administer a $100 million fund to support experimental programs, like giving cash rewards to encourage poor people to stay in school or receive preventive medical care, or matching their monthly bank deposits to foster greater savings.
This sounds an awful lot like a new private capital twist on the old game of so-called poverty programs that in fact function as job program for the working class, creating an enshrined social service bureau with every incentive to retain the impoverished class their livelihood depends on.

It also seems the mayor is, yet again, working at cross-purposes. On the one hand, he’s preaching a gospel of self-sufficiency, while on the other, the economic rewards he’s offering all suggest that poor people will not make good decisions unless immediately rewarded for them, just as they lack the self-control to avoid trans-fats and other unhealthy foods.

With all that said, there are a few positive signs. First off, that the plan was developed in consultation with, among others, the honorable, intelligent and effective : Inclusion of the honorable intelligent and accomplished Geoffrey Canada, founder of the Harlem’s Children Zone, is very promising.

And Errol Louis has a sharp dispatch in the Daily News pointing out that the plan was announced in the lobby of one of New York’s 28 credit unions, and hoping that this means some of the $150 million in new funds will flow into these grass-roots financial institutions that he correctly calls “a smart, proven way to combat poverty.”

Louis also is impressed that “The city plans to spend $150 million on anti-poverty initiatives, of which $100 million will go to a new Innovation Fund, designed to put dollars in the best and most effective programs.” And if money is allocated strictly according to impact, this would be worth touting (to be fair, $5 million is being put aside to monitor program results). Then again, since the city got rid of its Department of Burning Tax Payer Dollars, efficiency is always a goal, and we’ll believe that the city has the will to eliminate inefficient but politically popular programs when we see it.

America Works founder Peter Cove writes in, and doesn’t see much that’s new or worthwhile:

The Mayor's poverty proposal relies on discredited strategy and wishful thinking. Rather than tackling the tough stuff, it panders to providers of poverty programs long found to be ineffective or worse. Why isn’t the creation of jobs the first strike in the reduction of poverty, instead of incentives to create independent development accounts. For unemployed fathers?

Rather than encouraging men to return to their children and their mothers, we are fed programs to send nurses to poor first time mothers. What say we encourage the fathers back first?

Thirty more programs are said to be in the offing. One hopes that they will focus not again on peripheral issues, but strike at the very heart of New York's poverty problem-work and the missing fathers.



Submitted by Anonymous (not verified) on Tue, 12/19/2006 - 2:26pm.

Poverty, homelessness, bad public schools have all gotten worse under this mayor, $150 million is a drop in the bucket and as mentioned will hardly do anything to attack the real and tough issues affecrting the poor, like jobs and training, vocational programs in schools, drug rehab clinics with programs linked to jobs, etc.,etc.He is many days late and many dollars short to be believed.

This mayor could give a damn about poor and working class people when his own city employees are showing up at food kitchens and using food stamps and he believes $18,000 dollar a year jobs as cashier is job creation.

The mayor is not to be taken seriously and the local media is no to be believed when they cover this out of town clown who bought his way into city hall.


Submitted by Anonymous (not verified) on Tue, 12/19/2006 - 2:29pm.

Only an out-of-touch, elitist billionnaire would think that something like this will actually work.

 Bloomberg is more of a fool than I thought.


Submitted by Anonymous (not verified) on Tue, 12/19/2006 - 2:31pm.

Enough generalizing. Let's be concrete. I too believ in jobs and goodness and light and chocolate, etc.

What specific programs are problematic?

What programs are wasteful?

What programs are inconsistent with jobs creation, better healthcare outcomes, better educational outcomes, etc?

A general belief in the fostering free-enterprise in NYC is neither controversial, nor profound. Job creation is not your idea. Developing a suitable citizenry to fill jobs has proven much harder.

Welcome to Room 8. Now say something worthwhile.


Submitted by Anonymous (not verified) on Tue, 12/19/2006 - 4:59pm.

1:31 pm The mayor has been in office for 6 years and he has only now decided to deal with these problems? I repeat the only real job creation has been low paying service McDonald's burger flipping jobs, there has been no job growth for middle income educated folks and Wall st. has not created any new jobs under this mayor . Do you really believe that you can seriously impact outcomes in schools without first dealing with all the social issues poor children have to deal with before and after school, this isn't rocket science and the schools have gotten worse under this mayor. He is preventing services for special ed and immigrant students and locking them out of the newly created small schools. Me thinks bloomberg speaks with forked tongue.

No real job creation for middle class educated folks defintely impacts on those lower down on the ladder.

Corporate and real estae welfare to big companies racking in big dollars like Goldman Sachs does nothing to help poor people in the city(besides not being very effective, the tax breaks provided to these corporations has to be made up somewhere eles, hello middle class and public schools).

 1:31 the only thing I take away from your comment is more paralysis by analysis bs that the poor have been putting up with for years.  

$150 million dollars is bs and it seems more like a gimmick, diversion, publicity stunt maybe to avoid the issues surrounding Sean Bell or  to give people the fake impression that this clueless mayor really cares about poor people. The biggest mistake ever made in this city was electing a billionaire capitalist supply side economy thinking mayor, these folks don't give a crap about poor people. Bloomberg sucks as mayor and he is clueless about poor and working folks.This is what you get when someone can buy their way into the mayor's office for $100 million dollars.


Submitted by Anonymous (not verified) on Tue, 12/19/2006 - 5:33pm.

correction to my above, he spent nearly $200 million dollars when you account for both election campaigns.

Obscene.


Submitted by Larry Littlefield on Tue, 12/19/2006 - 6:32pm.
at the local level, the poverty rate is geneated by migration -- who moves in and who moves out -- as much as public policy or even the economy in the long run. If Bloomberg's plan succeeds, the newly successful former poor (or their offspring) could move out, replaced by poor people from elsewhere. Or, despite failure, poverty could fall because non-poor people move in, and the children of the poor cannot afford housing when reaching adulthood and move elsewhere. As discussed previously, the poverty rate is falling for the latter reason. So if this continues and Bloomberg declares victory, it isn't necessarily so. None of this means it isn't a good idea to educate children and improve the lives of adults. It just means you may not get the credit.
Submitted by danielnyc (not verified) on Tue, 12/19/2006 - 7:46pm.
Doesn't bloomberg remember what happened when President Johnson declared a war on poverty?
Submitted by Anonymous (not verified) on Sun, 02/25/2007 - 6:29am.
bloomberg is corrupt he only fattens his pockets that's all he does as mayor he stinks and sucks big time
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Submitted by Bluzulu (not verified) on Tue, 11/25/2008 - 8:58am.
Bloomberg is an arrogant piece of shit who basically wants the city to go bust so he and his pals can buy up all the real estate. Hey Bloomberg...take your anti-smoking, mandatory low fat in restaurants, do nothing, useless mayor shit and shove it right up your ass!

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