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Recent studies show that guaranteed income programs don’t effectively reduce poverty or improve health, as they lead to less work and no significant health benefits, suggesting a need for reevaluation of welfare programs.
Studies Show Guaranteed Income Programs Don’t Solve Poverty Issues
According to the report of the Washington Examiner, recent studies from the National Bureau of Economic Research found that guaranteed income programs, like giving $1,000 a month, don’t effectively solve poverty problems. The research shows that people who receive this money tend to work less and earn less. Instead of looking for better jobs or education, they spend more time relaxing. This suggests that guaranteed income may encourage people to be less productive and stick to their current poverty levels.
The studies also reveal that guaranteed income doesn’t improve people’s health. Recipients didn’t see any better results in exercise, sleep, or overall health. There were no significant changes in their physical or mental well-being after two years of receiving the money. This indicates that these programs don’t lead to healthier habits or better health outcomes.
READ ALSO: $1,000 Monthly Payments Test Basic Income Approach to Preventing Homelessness in the Bay Area
$1,000 a Month Not Enough: Study Reveals Guaranteed Income Programs Fail to Lift Poverty, Boost Productivity, and Improve Health (PHOTO: MIT Technology Review)
Studies Find Guaranteed Income and Housing Wealth Fail to Improve Health, Call for Welfare Reform
Additionally, similar patterns were seen among elderly homeowners who gained wealth from rising property values but didn’t use that money to improve their health. The research suggests that the government should rethink welfare programs for working-age adults, as they don’t seem to offer much benefit. Instead, efforts should focus on helping families move to better neighborhoods for more opportunities.
READ ALSO: 11-Year Stagnation: $7.25 Minimum Wage Now Worth $10.58, Leaving 31.9% of Workers Struggling to Make Ends Meet!
