Guaranteed basic income programs are growing in popularity

Over the past four years, a growing number of US cities and counties have experimented with guaranteed basic income programs that aim to combat poverty by providing direct, unconditional payments to lower-income Americans.

• Houston, Louisville, Nashville, and Birmingham are among the 150+ US locations that have implemented basic income pilots since 2020.
• The programs target low- to moderate-income residents, and generally pay them $500–$1,000 per month for one or two years.

Driving the trend… Covid was the main catalyst for basic income’s recent rise to prominence, with the idea gaining steam after Congress approved nearly $1 trillion in direct payments to Americans. The pandemic also granted billions of dollars in aid to cities, many of which used the money to fund guaranteed basic income pilots.

• These programs reflect a belief among some economists and Democratic lawmakers that distributing no-strings cash aid is one of the most effective ways to combat poverty, since people overwhelmingly spend the funds on necessities.
• Additionally, some US tech entrepreneurs argue basic income programs will be needed as automation and AI threaten jobs in the future.

But other economists, business leaders, and politicians disagree. Critics of basic income programs, including some GOP lawmakers, argue no-strings cash aid is too expensive on a large scale, and would make recipients less self-sufficient by removing their incentive to work – a trait that’s crucial to personal long-term success.

🤔🔢 What does the data say? Short answer: it’s a mixed bag. People in basic income programs say they’re more financially stable, have improved physical/mental health, and find an easier time securing full-time employment compared to before they enrolled, per a peer-reviewed study that followed a pilot in Stockton, California.

• However, other researchers who took a wider look at US basic income programs found the monthly payments had no significant impact on recipients’ job status, either positively or negatively.

📊 Flash poll: In your opinion, are unconditional basic income programs for lower-income Americans a good idea?

• Yes
• No
• Unsure/other