Rooted School: 50 Dollar Study
The $50 Study is a large-scale randomized controlled trial conducted by Rooted School Foundation to evaluate the impact of a direct-cash transfer program on high-school aged individuals.
SPENDING BREAKDOWN
The data in this pie chart shows aggregate spending for guaranteed income participants in New Orleans and Indianapolis. This includes all non-cash expenditures from the participants’ pre-paid debit card that is loaded with guaranteed income payments weekly.
Food and groceries accounted for the largest share of spending, at 46.5%, followed by Retail sales and services (34.75%) and Transport related expenses (11.74%).
CHILD TAX CREDIT
The state of Louisiana saw significant reduction in poverty as a result of the largest, national pilot in the Child Tax Credit that was implemented as a result of the Covid Pandemic.
This program provided tax credit for eligible taxpayers with qualifying children in the form of cash payouts. The credit amount varied based on factors like the number of qualifying children and the taxpayer’s income. It can lower tax liability or result in a tax refund.
During the course of this pilot, it has been proven to reduce poverty for families with dependent children – in every state.
Poverty Rate (Current Law)
20.1%
Poverty Rate (Under new tax credit)
9.9%
Percentage point reduction
10.1%
Percent change
50.4%
DEMOGRAPHICS
Basic Information
sample size (Treatment Group)
900
Avg. Age of Respondent (years)
1
Children in Households
Have Children in Household
1
%
No Children in Household
5
%
Avg. children in Household
1
Avg. Household size
Gender
Male
1
%
Female
5
%
Other
5
%
Living Arrangement
With Parents
1
%
With mother or father
5
%
With mother & her partner
5
%
With grandparents or relatives
1
%
Housing
owned
5
%
rented
5
%
ANNUAL HOUSEHOLD INCOME (IN $USD)
$0 to $30,000
5
%
$30,001 to $50,000
5
%
$50,001 or more
5
%
Featured Story
Kaleb C.
Kaleb is a dedicated 10th grade student at Rooted School New Orleans who is interested in Astrophysics. He has lived in New Orleans his entire life. Kaleb shared that the “cash transfers have made day to day life feel more free” and “[I] no longer has to worry about asking someone to buy something for me when I can do it myself now.” As a participant, Kaleb says “[I] learned that money really does change what you can do and who you are. You can feel more confident and more happy in general. Yet I always have to know I have a limit. This isn’t unlimited, I need to control what I buy and when. I have to know this so in the future I’m not stuck like a deer in headlights.”
Kipp is a 65-year-old female living in Long Beach. She had been a touring musician for almost twenty years when she became ill and started teaching guitar lessons. Her business was doing well until the pandemic hit; within two weeks, she lost all but one of her students. She is using some of the money to take a business course and buy a video camera to help launch her business. She said, “I have breathing room because, when you’re stressed out, you end up holding your breath. Now I’m breathing, I’m flowing, I’m creating, I’m learning a lot of different stuff. The Breathe program has helped me on a lot of levels.”
Featured Story
Kipp
Featured Story
PATRIC
Patric is a 31 year old male living in Inglewood. He had just left working for the post office and was trying to figure things out. He says, “I was in between jobs and trying to figure out everything. I’ve been able to get rent relief and get help with other bills. And they’re helping me in developing my career. By the end of the program, I’m hoping to be in a position to make a big purchase, like a house.”
Story content goes here
Featured Story
Name
Featured Story
Name
Story content goes here
Latest News
Discover the Latest about basic income
