Cliff Effects
  • Circles (r) USA has discovered that Circle Leaders who adhere to their plan earned an increased income of 181% on average.
  • Even with this progress more work is needed.
  • A person who is well below the national poverty level, and who receives an increase in pay, can still struggle to reach economic stability because of the current negative "cliff effects" built into public assistance programs.

What is a Cliff Effect?

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  • Public assistance ends when a person's income increases to a certain level.
  • The sudden loss of assistance programs such as Food Stamps (SNAP), childcare or fuel assistance can create what is known as the "cliff effect."
  • Often times an increase of less than $50 a month can lead to the loss of several hundred dollars' worth of programs.
  • When the gain in income doesn't cover the needs of their family once assistance is lost, it can cause someone to turn down a raise or even promotions.