![Tyson Foods Plant [Photo: Food Manufacturing]](https://southarkansassun.com/wp-content/uploads/2023/08/iStock_1185520857__1_.5e441daa51cca-600x337.jpg)
![Silverado Senior Living Management Inc. [Photo: Los Angeles Times]](https://southarkansassun.com/wp-content/uploads/2023/10/download-6-4-600x337.jpg)
![China's Wuhan Institute of Virology [Photo: Nature]](https://southarkansassun.com/wp-content/uploads/2023/09/d41586-021-01529-3_19239608-600x337.jpg)
UBI Leads to Less Work and Lower Earnings, Study Reveals
$1,000 Monthly Payments Fail to Boost Quality of Life
According to The Center Square, a new study by the National Bureau of Economic Research found that giving Americans $1,000 monthly payments leads to them working and earning less. The three-year study which involved 3,000 participants showed that both recipients and their partners worked fewer hours and earned less money over time. While supporters of Universal Basic Income (UBI) believed the $1,000 monthly payments would improve quality of life the study indicated that recipients only spent more time on leisure activities rather than on sleep, child care, community involvement, or self-improvement. Additionally, the study found that for every dollar received household income (excluding the UBI payments) decreased by at least 21 cents and individual income fell by at least 12 cents. Daniel Di Martino who is an economics researcher at the Manhattan Institute has commented to The Center Square that the study’s findings suggest handing out money isn’t the solution to all problems and sometimes makes things worse.
The study’s authors noted that means-tested welfare encourages Americans to work fewer hours to keep their benefits. They advocated for unconditional cash transfer programs that wouldn’t have these drawbacks, hoping they would allow Americans to find better jobs or spend more time on productive activities. However, the study found that participants’ incomes fell by $1,500 per year compared to a control group. They also participated in the labor force 2% less and worked 1.4 hours less per week. Participants used the extra time for leisure rather than improving their job quality or investing in training. Although some showed more interest in entrepreneurship this did not result in significant entrepreneurial activity as few Americans generally want to become entrepreneurs. During the 2020 Democratic primaries Andrew Yang proposed a $1,000 monthly payments claiming it would encourage work and entrepreneurship. However, this study did not support those claims.
READ ALSO: 150 Families To Receive $500 Monthly In Fresno’s Groundbreaking Anti-Poverty Initiative
$1,000 Monthly Payments Fail To Boost Quality Of Life, Lead To Reduced Work And Earnings (PHOTO: LinkedIn)
Calls for Targeted Cash Payments Gain Momentum
Furthermore, Di Martino expressed opposition to a blanket UBI noting that the study didn’t address inflation concerns. He remained open to the idea of replacing some welfare programs with unconditional cash payments and suggested that the almost negligible effects of UBI should be compared to those of existing welfare programs. Supporters of targeted cash payments agreed with the findings. UpTogether CEO Jesus Gerena stated that unconditional cash transfers have a more significant impact when directed toward those who truly need the money, and that giving cash to higher-income individuals through UBI diminishes the benefits for disadvantaged communities. Some states are considering UBI programs with California having started a pilot program last November, offering $1,000 monthly payments to foster youth in Ventura County and $1,500 in San Francisco.
READ ALSO: $300/Month Payments For Kids In 2024? Don’t Believe The Hype: $0 Coming Your Way!
