How was it spent: 40% was transferred or cashed out; self reported data shows it was spent on food, clothes, car repairs, and other basics. (Less than 1% went to alcohol or cigarettes).
Not guaranteed for life. Just 24 months ($12,000) in a city with a very high violent crime rate and poverty rate. I think if they keep following these families they will find that they were working harder in an attempt to save money with the goal of leaving the city.
Between these sorts of experiments and the effects of the U.S. stimulus payments, I think we have a growing body of evidence indicating that some type of UBI is not only fully compatible with a traditional understanding of capitalism, but can actually enhance the positive effects of capitalism on the middle class (i.e. grow it, instead of shrinking it).
The problem, of course, is that the story around taxation will have to change dramatically. Think the endless debate over whether the 1% are paying their fair share is tiresome now? That's nothing compared to the upcoming fight to make any progress whatsoever on progressive tax rates at the high end of the spectrum in order to fund UBI.
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[ 4.7 ms ] story [ 20.1 ms ] threadShort period of guaranteed income seems like the best moment in life to work more.
Who: 125 people at or below median income
When: Starting in feb 2019 lasting 24 months
How much: $500/mo
How was it spent: 40% was transferred or cashed out; self reported data shows it was spent on food, clothes, car repairs, and other basics. (Less than 1% went to alcohol or cigarettes).
Not guaranteed for life. Just 24 months ($12,000) in a city with a very high violent crime rate and poverty rate. I think if they keep following these families they will find that they were working harder in an attempt to save money with the goal of leaving the city.
The problem, of course, is that the story around taxation will have to change dramatically. Think the endless debate over whether the 1% are paying their fair share is tiresome now? That's nothing compared to the upcoming fight to make any progress whatsoever on progressive tax rates at the high end of the spectrum in order to fund UBI.