Denver experimented with giving people $1,000 a month. It reduced homelessness and increased full-time employment, a study found.
UBI, or universal basic income, is a form of direct cash assistance to help the most vulnerable get back on their feet. A new study in Denver suggests it works.
www.businessinsider.com
It does not necessarily buy happiness, but personal experience and academic research both suggest that when people have more money, they are more likely to lead a pleasant life. That's the premise of a social experiment in Denver, where for the past few months, several hundred of the city's most vulnerable people have been given straight-up cash with no strings attached.
The results, so far: People who were sleeping on the streets at the start of the experiment are now — with more money in their pocket — feeling safer, experiencing better mental health, and enjoying access to more stable and welcoming living arrangements.
Mark Donovan, founder and executive director of the Denver Basic Income Project, told Insider that he was "very encouraged" by the findings.
"Many participants reported that they have used the money to pay off debt, repair their car, secure housing, and enroll in a course," he said. "These are all paths that could eventually lead participants out of poverty and allow them to be less dependent on social support programs."