No matter whether a person was working or not, they would receive a regular payment from the universal basic income (UBI), also known as guaranteed income.
Its goal is to reduce poverty and provide people the freedom to manage their finances independently of salaries and perks. Allowing individuals to choose the professions they want to perform rather than the jobs they must do to survive, would allow them to work less and lead more satisfying lives outside of the realm of basic economics.
What Is Universal Basic Income?
The idea is criticized for perhaps demotivating work. On the other hand, programs like UBI have minimal effect on employee behavior, according to MIT and Harvard academics.
A universal basic income trial is being conducted in the Illinois city of Evanston (UBI). The theory behind it is that providing everyone with enough money to survive whether they were working or not, it would reduce poverty and avoid homelessness.
In 2019, the Stockton Economic Empowerment Demonstration (SEED) conducted an experiment by giving $500 a month in cash to 125 residents of communities where the median household income for the county was at or below that amount.
The goal of the plan, according to the then-Mayor Michael Tubbs, was to provide people the freedom to make their own decisions.
During the duration of 2023, 150 residents will get $500 on a prepaid card as part of a program. Now, more than 40 comparable pilot programs pay people in need $300 to $1,800 per month for up to three years in California.
The greatest limitless cash experiment in modern US history, these projects could provide more than 12,000 Californians with more than $180 million in public and private finance.
Pilot Programs In Other States
Another location testing UBI programs is Chelsea. The largest group on this list will get between $200 and $400: 2,000 recipients. Since November, it has been in effect.
You need to live in Chelsea, apply for assistance, and have a household income that is 30% or less of the local median income.
The trial involved 170 participants from the city of Alexandria. The first payments will be paid in January 2023, and they will receive $500 per month for 24 months. 214 more people have been chosen to participate in the trial.
Although candidates are chosen at random, they must have household incomes that are equal to or lower than 50% of the median income for the area.
The UBI program in Madison County is called the Madison Forward Fund. Throughout the year 2023, 155 households will receive $500 each month.
Read more: Social Security Expansion: Those who will turn 62 may be eligible for an additional $2,400!