Basic Income

Eric Boehm | 7.25.2024 1:45 PM

The largest study into the real-world consequences of giving people an extra $1,000 per month, with no strings attached, has found that those individuals generally worked less, earned less, and engaged in more leisure time activities.

It's a result that seems to undercut some of the arguments for universal basic income (UBI), which advocates say would help lower- and middle-class Americans become more productive. The idea is that a UBI would reduce the financial uncertainty that might keep some people from pursuing new careers or entrepreneurial opportunities. Andrew Yang, the businessman and one-time Democratic presidential candidate who popularized the idea during his 2020 primary campaign, believes that a $1,000 monthly UBI would "enable all Americans to pay their bills, educate themselves, start businesses, be more creative, stay healthy, relocate for work, spend time with their children, take care of loved ones, and have a real stake in the future."

In theory, that sounds great. In reality, that's not what most people do, according to a working paper published this month.

The five researchers who published the paper tracked 1,000 people in Illinois and Texas over three years who were given $1,000 monthly gifts from a nonprofit that funded the........

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