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talkpoliticsTwo years ago the city of Stockton, one of California's most downtrodden communities, picked 125 people living below the poverty line at random and started giving them debit cards filled with $500/month. Cash. No strings. And they watched their purchases and other actions.
Did they spend the money on addictions? Apparently not: less than 1% of the money was spent on cigarettes and alcohol.
Did they just sit on their lazy asses and give up looking for work? No, 29% of recipients were employed when the program started; 40% are employed today. The money apparently removed barriers to seeking employment. They were twice as likely to find employment as those in a control group that was also studied.
The problem for many of these people was income insecurity: they just didn't know how much money they would have from month to month. Providing them with a stable source of income, even as little as $500/month, allowed them to invest in themselves and those around them:
"The participating treatment group spread that money around their family and social networks to stabilize food security in more than one household at a time".
https://eu.recordnet.com/story/news/local/2021/03/03/stockton-economic-empowerment-demonstration-seed-program-guaranteed-income-california/6907700002/
Poverty is a trap not created by bad character but by insecurity. The current system is set up to punish those without, with pay day loans and other economic systems that take away even more. "The rich get richer and the poor get poorer" is a well-known cliche - and it's true. But we can change that.
Did they spend the money on addictions? Apparently not: less than 1% of the money was spent on cigarettes and alcohol.
Did they just sit on their lazy asses and give up looking for work? No, 29% of recipients were employed when the program started; 40% are employed today. The money apparently removed barriers to seeking employment. They were twice as likely to find employment as those in a control group that was also studied.
The problem for many of these people was income insecurity: they just didn't know how much money they would have from month to month. Providing them with a stable source of income, even as little as $500/month, allowed them to invest in themselves and those around them:
"The participating treatment group spread that money around their family and social networks to stabilize food security in more than one household at a time".
https://eu.recordnet.com/story/news/local/2021/03/03/stockton-economic-empowerment-demonstration-seed-program-guaranteed-income-california/6907700002/
Poverty is a trap not created by bad character but by insecurity. The current system is set up to punish those without, with pay day loans and other economic systems that take away even more. "The rich get richer and the poor get poorer" is a well-known cliche - and it's true. But we can change that.
(no subject)
Date: 4/3/21 20:22 (UTC)Related suggestion with an eye on history: cross-reference "Mincome", "Dauphin", "Manitoba", "experiment".
(no subject)
Date: 5/3/21 10:00 (UTC)"...It doesn't give the deserving poor the chance to pull themselves up by their bootstraps and is therefore immoral even if effective. Or something. And it's socialism too! And we don't need no communist agitators here thank you very much. We're 'Merican..."
But I'm not an American. Given this information, I'd roll out the programme for all those below the poverty line and increase the marginal tax on those earning over 250K, rising a point or two with every 150K extra, to pay for it. This is very socialist, I guess, but then again I think it's about time more folk start adopting "Clause Four" as a personal mantra. And also I've become increasingly radicalised by my nation's stupidity, cupidity, and outright corruption and ineptitude; so I'm only a step away from turning into Robespierre; and, ergo I wouldn't take my opinion as being unbiased.
(no subject)
Date: 9/3/21 23:14 (UTC)What is lacking is political will.