Universal Basic Income: A Promising Solution — Insights from Stockton, California

Many of us have recently received our latest round of COVID relief payments. What you do with those funds is entirely your business, but if you believe that government assistance is misguided, I can suggest some individuals and groups that could benefit from your perspective. For parents, this relief initiative offers a glimpse into universal basic income, which has been tested in various nations and is currently being proposed by the Biden administration. Starting in July and continuing through December, families with children under six will receive $300 monthly, while those with kids under 18 will get $250 per child.

This credit differs from the existing child tax credit because it targets those who truly need it: families in the lowest income brackets who previously earned too little to receive adequate support to escape poverty. Yes, you read that correctly. This initiative primarily aids those who are struggling, rather than offering help to the most destitute, as it relies on earned income and taxes paid, excluding unemployment income or public assistance.

Biden’s relief proposal is not the first instance of providing “no-strings-attached” financial support to those in need. A pilot program launched in February 2019 in Stockton, California, gave 125 individuals $500 monthly with no conditions attached. The results are in, and researchers are eager to share their findings.

Funded by philanthropic organizations, the Stockton Economic Empowerment Demonstration provided randomly selected participants earning below the median income of $46,000 per year with $500 a month to spend as they wished. They faced no drug testing or work requirements; they were simply trusted and assisted.

Contrary to the beliefs of those who have never experienced hardship, the recipients of this assistance did not become less motivated to work or spend their funds on substances like drugs or alcohol. Instead, they paid their bills, spent quality time with their families, and left abusive relationships.

If you grew up in poverty like I did, you know that people find a way to obtain “temptation goods” regardless of assistance. Living in poverty is incredibly challenging, often marked by addiction, abuse, and juggling multiple jobs just to survive. That pack of cigarettes or bottle of wine might have helped some get through tough times, but it didn’t necessarily keep them in poverty. While I do not speak for everyone in poverty, I understand the rationale behind purchasing items that others might deem nonessential. Ultimately, it’s not up to anyone else to dictate how individuals spend their money.

Recent data from the Stockton experiment emphasizes the advantages of having a consistent income for those who rely on unpredictable paychecks. Gig work became even more unstable during the pandemic, and those of us involved in gig work know that, even in favorable times, the fluctuation makes it challenging to meet our monthly obligations, let alone save for the future. Participants who received $500 a month in Stockton experienced reduced stress and were able to make more informed decisions regarding their future. They transitioned from part-time to full-time employment and found breathing room in their lives.

Universal basic income does not promote laziness or recklessness; rather, it fosters better health and well-being. Michael Tubbs, the former mayor of Stockton who led the project, stated, “Cash is a better way to cure some forms of depression and anxiety than Prozac. So many of the illnesses we see in our community are a result of toxic stress and elevated cortisol levels, directly attributed to income volatility and not having enough to cover your basic necessities.”

Several other U.S. cities are exploring universal basic income programs, but to truly address poverty on a larger scale, such initiatives need to be implemented federally. Currently, 27 million children in the U.S., including a significant number of Black and Latino children, do not qualify for the full child tax credit because their families earn too little. If Biden’s historic relief bill continues, it could lift nearly 10 million children above the poverty line. The new tax credit could increase the maximum annual benefit for many families to $3,600 per child under age 6 and $3,000 per child aged 6 to 17—up from $2,000 per child under 17. Additionally, families would receive payments throughout the year rather than in one lump sum during tax season, which would help reduce income volatility, a benefit we learned from the Stockton experiment.

Your assumptions about “free money” or universal basic income may be misguided. The most effective way to support those in need is to provide them with what they require; they do not need alternative solutions or criticisms. And let’s not forget about trust fund beneficiaries or those privileged individuals who navigate life with the safety nets established by previous generations. While taxes are paid on income, how is that income genuinely “earned”? Why do some children have access to unearned financial support while others do not?

It’s not solely about hard work or determination; it often comes down to luck and opportunities. Many people living in poverty work incredibly hard yet still lack access to equitable opportunities. And who says we must constantly toil? Why shouldn’t lower-income earners be allowed to take breaks, spend time with their families, take risks, and create opportunities that could enhance their emotional and physical health?

If your aim is to minimize reliance on public assistance, wouldn’t it be beneficial to support individuals in achieving self-sufficiency by providing the means to do so? Yes, it absolutely would.

For more insights on this topic, check out this related piece on home insemination and explore resources on pregnancy at Healthline. Additionally, if you’re interested in fertility options, visit Make a Mom.

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Summary:

Universal Basic Income (UBI) has shown promising results in Stockton, California, where a pilot program provided $500 monthly to low-income individuals. This research indicates that UBI can reduce stress, improve decision-making, and promote healthier lifestyles without discouraging work. The Biden administration’s proposed child tax credit expansion aligns with these findings, aiming to lift millions of children out of poverty. Critics of government assistance often overlook the nuances of poverty, where many hardworking individuals still struggle. A broader application of UBI at the federal level could provide the necessary support for families to thrive.

Keyphrase: Universal Basic Income

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