The extraordinary success and thorny politics of a bold policy idea
Perspective by Megan GreenwellFrom left, former Stockton Calif., mayor Michael Tubbs; Baltimore Mayor Brandon Scott, center right; guaranteed-income advocate Nika Soon-Shiong. (Photo illustration by The Washington Post. Photos: Scott by Kenneth K. Lam/The Baltimore Sun/Tribune News Service/Getty Images; others by Ian Maddox. Check by IRS.)
in January 2019, Zohna Everett was sitting in an airport when her phone rang. On the other end of the line, a voice informed her that she had been randomly chosen to receive $500 a month as part of something called the Stockton Economic Empowerment Demonstration.
When Everett had first heard about SEED a few weeks earlier, she’d wondered if it might be a scam, as things that sound too good to be true often are. Her pastor assured her that it was real — that 125 residents of poor neighborhoods in Stockton, Calif., would receive money as part of a groundbreaking experiment. When she got the call, Everett thought she was receiving a one-time payment, which was thrilling enough. Then the woman on the phone told her she’d receive $500 every month for a year and a half, with no strings attached. She nearly collapsed from joy right there in the airport.
Suddenly, Everett — who in 2018 had lost her job as a Department of Defense logistics specialist, had subsequently tried to make ends meet by driving for DoorDash, then had taken out significant unsubsidized loans to attend college online in a bid to improve her employment prospects — saw a path back to stability. She would be able to cover her car payments and the rent, to keep her phone on without giving up her monthly tithe to her church.[COLOR=var(--wpds-colors-gray40)]n January 2019, Zohna Everett was sitting in an airport when her phone rang. On the other end of the line, a voice informed her that she had been randomly chosen to receive $500 a month as part of something called the Stockton Economic Empowerment Demonstration.
When Everett had first heard about SEED a few weeks earlier, she’d wondered if it might be a scam, as things that sound too good to be true often are. Her pastor assured her that it was real — that 125 residents of poor neighborhoods in Stockton, Calif., would receive money as part of a groundbreaking experiment. When she got the call, Everett thought she was receiving a one-time payment, which was thrilling enough. Then the woman on the phone told her she’d receive $500 every month for a year and a half, with no strings attached. She nearly collapsed from joy right there in the airport.
Suddenly, Everett — who in 2018 had lost her job as a Department of Defense logistics specialist, had subsequently tried to make ends meet by driving for DoorDash, then had taken out significant unsubsidized loans to attend college online in a bid to improve her employment prospects — saw a path back to stability. She would be able to cover her car payments and the rent, to keep her phone on without giving up her monthly tithe to her church.
For Mayor Michael Tubbs, that was exactly the point. Since childhood, Tubbs had watched his mom and his friends struggle with everyday expenses while receiving only minimal help from the government in Stockton, one of the poorest cities in the country, which sits in California’s Central Valley. He theorized that a relatively small guaranteed income — just $6,000 a year per recipient, enough to cover the occasional emergency expense or supplement a minimum-wage salary — would single-handedly eliminate the insecurity that governed the lives of many poor Stockton residents. And so, with funds and guidance from the nonprofit Economic Security Project, he created a pilot program — one of the first of its kind in the country. His goal was as simple as it was ambitious: to run a demonstration project so successful that national politicians would have no choice but to consider adopting guaranteed income as national policy.
Sitting in a Stockton Starbucks nearly three years later, a soft-spoken Everett remembered nearly every detail of that fateful phone call from SEED. Swaddled in a white puffer coat on an unseasonably cold day, her hair in a low bun, she looked younger than her 51 years as she cradled a caramel Frappuccino and choked up as she described the immediate impact the payments had on her life. She quit driving for DoorDash, which gave her the time to find a job as a factory worker at Tesla’s plant in Fremont, 60 miles from Stockton. She was able to escape a dysfunctional marriage and move into her own home. “For me, it was a steppingstone. It got me to where I was okay by myself,” she says. “It was right on time. Everything in me was just like, ‘Oh, thank you so much, Lord.’ ”
The SEED program was scheduled to end in the summer of 2020, but its founders secured additional donations to fund an extra six months to get people through the worst days of the pandemic. That was another lifesaver for Everett, who was diagnosed with a severe case of covid-19 and struggled with lingering symptoms, leaving her unable to work for most of that year. Fortunately, the $500 a month from SEED, plus disability payments, proved to be enough to pay her bills.
If you just learned about guaranteed income in the past few years, chances are it was from the presidential campaign of Andrew Yang, who got a lot of attention for his proposal that the government offer $1,000 monthly payments to all Americans. But versions of this concept had been circulating for decades among academics and progressive activists. And as the country shut down in the early days of the pandemic, the conditions appeared ripe to try something new, something radical. Pilot programs launched in Los Angeles, in New Orleans, in Denver, but also in historically less progressive cities like Birmingham, Ala.; Columbia, S.C.; and Gainesville, Fla. In March 2020, even a vast majority of congressional Republicans backed a $2 trillion stimulus bill that included unconditional cash payments for tens of millions of Americans. Since then, the Mayors for a Guaranteed Income coalition, which grew out of SEED, has swelled to more than 90 members and three dozen programs; a $15 million donation from Twitter co-founder Jack Dorsey helped fund many of the pilots.
Now, though, as the country emerges from the pandemic, the guaranteed income movement sits at a crossroads. The pilot programs have created scores of stories like Everett’s about how a small amount of money led to massive change in a recipient’s life. And a growing body of research based on the experiments shows that guaranteed income works — that it pulls people out of poverty, improves health outcomes, and makes it easier for people to find jobs and take care of their children. If empirical evidence ruled the world, guaranteed income would be available to every poor person in America, and many of those people would no longer be poor.
But empirical evidence does not rule the world, and it is far from clear that there is a political path forward for guaranteed income on a large scale. The city-level experiments cannot last forever: Stockton’s lapsed in early 2021, a few months after Tubbs lost his reelection bid to a Republican successor who showed no interest in trying to keep SEED going. On Capitol Hill, too, political momentum for handing out cash has waned. At the end of 2021, an extension of the expanded child tax credit — which was seen by many advocates as a key steppingstone to guaranteed income — was blocked by a Democrat representing the state with the sixth-highest poverty rate in the country.
Early in the pandemic, some in the guaranteed-income movement had begun to whisper about accelerating the timeline for taking their efforts nationwide. America’s most progressive social policies have always grown out of economic crises, so maybe covid would bring about a guaranteed-income policy in the next few years. But the failure of the expanded federal child tax credit diminished some of that optimism; many of those same advocates are now looking toward the long game. “You have to be willing to fight for something to the end,” says Baltimore Mayor Brandon Scott, who recently launched a guaranteed-income experiment, “even if it doesn’t happen, even if you only push it a few feet further, even if it means that you die doing it.”
Without a radical solution — like, say, giving people money with no strings attached — America will continue to be home to one of the worst rates of income inequality of any rich nation in the world. And from city to city, there is massive energy and momentum to keep expanding this experiment. But true believers also harbor a sense of anxiety about what the future holds. “I’m worried,” says Sean Kline, the associate director of Stanford University’s Basic Income Lab, “that these guaranteed income demonstrations are going to sunset and then it’s just going to go quiet.”
Baltimore Mayor Brandon Scott, right, with Joe Jones Jr., founder and chief executive of the Center for Urban Families, before announcing the city’s guaranteed-income pilot program in April. (Kenneth K. Lam/The Baltimore Sun/Tribune News Service/Getty Images)
For as long as America has had a poverty problem — which is to say, for its entire history — a small group of dreamers has proposed guaranteed income as a solution. The idea dates to the year the country was founded: Thomas Paine proposed a type of basic income in his 1776 pamphlet “Common Sense.” In the mid-20th century, it gained traction among Black American thinkers: In 1966, the Black Panthers’ Ten-Point Program demanded “employment or a guaranteed income” for everyone. A year later, the Rev. Martin Luther King Jr. wrote in his last book — “Where Do We Go From Here: Chaos or Community?” — that government aid programs all have a “common failing: they are indirect. Each seeks to solve poverty by first solving something else. I am now convinced that the simplest approach will prove to be the most effective — the solution to poverty is to abolish it directly by a now widely discussed measure: the guaranteed income.”
The first official proposal for a federal basic income program, though, came not from a paragon of progressivism, but from Richard Nixon. In 1969, Nixon introduced the Family Assistance Plan, which would have provided additional cash to poor families through a negative income tax — cutting checks to the poorest Americans instead of them paying the government — of $1,600 (about $13,000 today) for a family of four. The proposal was motivated by Nixon’s desire to replace the welfare system, which was unpopular with White blue-collar voters, but it never made it out of the Senate Finance Committee.
Many skeptical politicians and voters feared that giving people cash would allow them to quit their jobs, stop looking for work or work less. Around the same time, a series of negative-income-tax experiments benefiting about 7,500 people in six states appeared to confirm those concerns: In Seattle and Denver, where the two largest programs took place, married men worked an average of 7 percent fewer hours after three years of the program, while married and single women worked 17 percent fewer hours. And while researchers didn’t look at any other measures of stability — whether participants were more likely to seek medical care, for example, or whether their children missed fewer days of school — they did observe a modest increase in the divorce rate. Those two factors were enough to destroy widespread interest in guaranteed-income experiments for several decades.
Over time, however, interpretations of the 1970s experiments have morphed. Participants don’t seem to have dropped out of the labor force entirely, suggesting that the money may have given them the luxury of waiting a little longer for the right job to come around instead of rushing into the first available option. And working less sometimes means getting more education, which is almost always a net positive for the economy. An uptick in divorces can be a good thing too: Studies show that financial insecurity is a major contributor to keeping women in failing relationships, as in Everett’s case. In retrospect, the legacy of the first significant guaranteed-income pilots was a whole lot of complicated questions and limited information with which to answer them.
If empirical evidence ruled the world, guaranteed income would be available to every poor person in America, and many would no longer be poor. But empirical evidence does not rule the world.
Meanwhile, the concept of conditional cash-transfer programs — in other words, paying poor people for desirable behavior — was gaining steam in middle-income countries like Mexico and Brazil. In 2007, New York Mayor Mike Bloomberg launched a program called Opportunity NYC, which rewarded parents for tasks like taking their children to the doctor and completing job-training courses. The experiment had a moderate positive effect on families’ overall finances but did not boost academic performance among elementary-schoolers or increase families’ likelihood to seek preventive medical care, researchers found. Bloomberg did not extend the program when it expired in 2010.