Many of us have recently received COVID relief checks. How you choose to spend your funds is your own decision, but if you’re skeptical about government assistance, I can point you towards individuals and communities that could benefit from your insights. For parents, this relief package offers a glimpse into the concept of universal basic income, which has been successfully tested abroad and is now being proposed by the current administration. Starting in July and lasting through December, families with children under six will receive $300 per month, and $250 for each child under 18.
This initiative differs from the existing child tax credit because it aims to aid those who need it most—families in the lowest income brackets who previously didn’t qualify for assistance. It’s not a solution for everyone; rather, it targets those with low earning potential, excluding income from unemployment or public aid.
Biden’s relief package isn’t the first attempt to provide “free money” to those in need. A notable experiment began in February 2019 in Stockton, California, where 125 individuals received $500 monthly with no strings attached. Researchers are eager to share the findings of this Stockton Economic Empowerment Demonstration, which was funded by philanthropic organizations.
Participants, selected randomly, had average incomes below the median of $46,000 per year. They were trusted to use the money as they saw fit; there were no drug tests or work requirements. Contrary to common beliefs about those in need, recipients did not become less motivated or irresponsible. Instead, they covered bills, spent quality time with family, and left harmful situations.
If you’ve experienced poverty as I have, you know that people find ways to obtain what they need, even if it means making tough choices. Living in poverty is an immense challenge, often filled with addiction and abuse, alongside juggling multiple jobs just to survive. While some may view certain purchases as frivolous, it’s crucial to remember that not everyone has the same perspective on their needs.
New data from the Stockton project reveals the significant impact that a steady income can have on people living paycheck to paycheck. Gig work became even more precarious during the pandemic, making it harder for many to meet monthly obligations. Those receiving $500 a month reported reduced stress levels and were better equipped to make future plans. Some even transitioned from part-time to full-time employment.
Universal basic income does not promote laziness or discourage work; rather, it enhances health and well-being. “Cash can be a more effective treatment for some forms of depression and anxiety than medication,” says Rachel Martinez, former mayor of Stockton and a leader of the project. “Many health issues stem from the stress caused by financial instability and the inability to meet basic needs.”
Several cities across the U.S. are considering universal basic income programs. However, to truly address poverty, a federal approach is necessary. Currently, 27 million children in the U.S., including a substantial number of Black and Latino children, miss out on the full benefits of the child tax credit because their families earn too little. If Biden’s relief measures were to continue, nearly 10 million children could be lifted above the poverty line. The new tax credit would increase the maximum annual benefit for many families to $3,600 per child under six and $3,000 for children aged six to 17, providing funds throughout the year instead of just during tax season. This helps reduce income volatility, a critical finding from the Stockton experiment.
Your assumptions about “free money” or universal basic income may be misguided. The most effective way to assist those in need is to provide them with what they require; they don’t need alternative suggestions or criticism. Consider the advantages that affluent individuals often enjoy, with generational wealth providing them safety nets that facilitate their success. Why should some individuals receive financial support while others don’t?
Don’t tell me it’s about hard work or determination; it’s largely about luck and opportunity. Many hardworking individuals at or below the poverty line still lack equitable access to opportunities. Why shouldn’t lower-income earners be allowed to take breaks, spend time with their families, and pursue ventures that could improve their well-being and financial prospects? If the goal is to reduce dependence on welfare, then it benefits society to empower individuals to become self-sufficient.
Yes, it does.
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Related Queries:
- What is universal basic income?
- Benefits of universal basic income
- How does universal basic income work?
- Stockton universal basic income experiment results
- Impact of cash assistance on poverty
In summary, universal basic income has shown promise in improving lives and reducing stress for low-income earners, as evidenced by the Stockton experiment. This approach could ultimately lead to a more equitable society where individuals have the opportunity to thrive.
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