Grace receives $22 a month as part of a 12-year universal basic income study run by the charity GiveDirectly that began in October 2016 in Western Kenya.
Everywhere basic income has been tried, in one map
The
general idea — that the government should give every citizen a regular infusion of free money with no strings attached — has been around since the 16th century. But it’s experienced a remarkable resurgence over the past few years, moving from the fringes into the mainstream.
Advocates ranging from tech billionaire Mark Zuckerberg to libertarian economist Milton Friedman have endorsed it. Andrew Yang
popularized it on the Democratic debate stage. And around the world, countries are running pilot programs to test it.
With a few exceptions —
Kenya, where a big experiment in universal basic income (UBI) is underway;
Iran, which has a nationwide unconditional cash transfer program; and
Alaska, which gives an annual dividend to everyone in the state — basic income programs are offering money to small groups of a few hundred or a few thousand people, not an entire polity. In other words, they offer a basic income, but not a universal basic income.
These small-scale trials are necessary because governments want to have a good sense of what the effects will be before they start shelling out many billions or trillions of dollars.
Proponents of basic income argue it’s the best way to end poverty: Just give everyone money! Some also say it’ll help society cope with a coming era of automation-induced joblessness.
And the evidence so far suggests that getting a basic income tends to boost happiness, health, school attendance, and trust in social institutions, while reducing crime.
But critics worry that it will disincentivize work, cheating economies out of productivity and cheating individuals out of the sense of meaning that work can bring. Plus, they say, it’s just plain unaffordable for the government to pay every citizen enough to live on regardless of whether they work. The evidence so far does not support these critiques, as you’ll see.
Some 130 countries, from Mexico to Italy to Uganda, have instituted conditional cash transfers, which may require recipients to send their kids to school or go for health checkups. Although these programs have proven beneficial in some cases, they’re not the subject of this piece.
United States
The US has tried a few basic income experiments, but most have been short-lived small-scale trials.
Alaska is an exception. Since 1982, the state has given each citizen an annual check just for being alive, effectively wiping out extreme poverty. The money — which
can range from around $2,000 per person when oil prices are high to $1,000 in cheaper gas years — comes from the Alaska Permanent Fund, a state-owned investment fund financed by oil revenues.
Economists investigated whether the payment was leading people to work less and
found that “the dividend had no effect on employment” overall. (It has, apparently, had an effect on fertility, encouraging families to have more kids. It’s also had some unexpected effects on the state’s politics.)
Eastern Band of Cherokee Indians Casino Dividend in North Carolina. Since 1997, revenue from a casino on tribal land has been given to every tribal member, no strings attached. Each person gets on average somewhere between $4,000 and $6,000 per year.
Economists found that it doesn’t make them work less. It does lead to improved education and mental health, and decreased addiction and crime.
Between 1968 and 1974, the US
experimented with giving cash to around 7,500 people in New Jersey, Pennsylvania, Iowa, North Carolina, Seattle, Denver, and Gary, Indiana. The money proved beneficial to recipients but did modestly reduce the hours they worked;
Canada
Between 1974 and 1979, Canada ran a randomized controlled trial in the province of Manitoba, choosing one farming town, Dauphin, as a “saturation site” where every family was eligible to participate in a basic income experiment.
The basic income seemed to benefit residents’ physical and mental health — there was a decline in doctor visits and an 8.5 percent reduction in the rate of hospitalization — and high school graduation rates improved, too. Dean, a Canadian mother of three, received her first basic income check one month prior.
She said the extra money gave her family “the breathing room to not have to stress to put food on the table.
Brazil
Brazil has been experimenting with cash transfers to poor families since the 1990s, and it now runs the massive Bolsa Familia program, which gives millions of people cash transfers.
This isn’t a UBI since the transfers are conditional — recipients are expected to keep their children in school and visit health clinics. But the massive program has formed the backdrop for Brazilian experiments in unconditional cash transfers.
Finland
In 2017, the Finnish government decided to see what would happen if it chose 2,000 unemployed citizens at random and gave them a check of 560 euros ($635) every month for two years.
Participants were assured they’d keep receiving the money if they got a job. As it turned out, the income didn’t help them get jobs, but it did make them feel happier and less stressed. The recipients also reported that they felt more trust toward other people and social institutions — from political parties to the police to the courts — than they did before getting a basic income. Finland ended the trial in 2018.
Germany
In 2014, the nonprofit
Mein-Grundeinkommen used crowdfunding to set up a basic income raffle...
80 percent of recipients said the income made them less anxious, more than half said it enabled them to continue their education, and 35 percent said they now feel more motivated at work.
Iran
In 2011, Iran rolled out a nationwide unconditional cash transfer program to compensate for the phase-out of subsidies on bread, water, electricity, heating, and fuel.
The program was later dialed back as some Iranians came to believe it was disincentivizing people to work. Yet economists found that “the program did not affect labor supply in any appreciable way.” The program is still running, and it’s the only such program in the world to run nationwide.
Kenya
The largest and longest UBI experiment in the world is taking place in Kenya..
2016, recipients receive roughly 75 cents per adult per day, delivered monthly for 12 years.
Some preliminary results will be available later this year. In the meantime, we’ve already seen that in another GiveDirectly program in Kenya, cash transfers have stimulated the economy and benefited not only the recipients themselves but also people in nearby villages.
Samson, 72, at his home in the Bondo region of Kenya, on October 3, 2018. Samson receives $22 a month from the American NGO GiveDirectly.
Namibia
Between 2008 and 2009, all residents below the age of 60 living in the
Otjivero-Omitara region of Namibia received a basic income: 100 Namibian dollars ($6.75) per person per month,
As a result, child malnutrition dropped and school enrollment rates went up, while poverty-related crime (like theft) fell, according to reports from BIEN and the Center for Public Impact.
India
Between 2011 and 2012, a pilot project in the state of Madhya Pradesh gave a basic income to some 6,000 Indians.
The results: Receiving a basic income led to improved sanitation, nutrition, and school attendance.