canyonwalker | Universal Basic Income - Stockton's Experiment (Reply)

Yesterday I wrote about the idea of Universal Basic Income (UBI). I teased at the end that it's not just an idea, it's something that's been tried... if only on small scales. One of those experiments happened near me, in the city of Stockton, California.

The Stockton Economic Empowerment Demonstration (SEED) program ran from 2019-2021. It gave 125 residents $500/month for 24 months. Recipients were selected at random from neighborhoods at or below the city's median income. The cash was completely unconditional, with no strings attached and no work requirements.

What were the results? I summarize a few below; you're also welcome to read for yourself. Studies commissioned by Stockton are linked to at the program page above. In addition there was also a variety of reporting on the program. Examples include a March 2021 article in The Atlantic, an NPR News article from 3 Mar 2021, and a KQED News interview transcript from 23 Mar 2021.

Key findings I found important about SEED's experiment with UBI:

UBI increased recipients' earnings from wages. This completely refutes the standard canard of anti-welfare conservatives that pretty much any form of public assistance discourages work and simply promotes laziness and creates dependency. Program recipients used the $500/month stipend to bring stability to their lives that enabled them to seek higher paying, full time work instead of subsistence level, part-time jobs.

Recipients by and large did not use UBI money to buy alcohol, cigarettes, or drugs. Only 1% of the money tracked went to such things. The majority was spent on essentials such as food, rent, utilities, and transportation. This contradicted another standard anti-welfare canard that a poor person given a handout will just turn around to use it on drugs, tobacco, or booze instead of something productive.