California city fights poverty with guaranteed income

Reuters ^ | June 4, 2018 | Jane Ross

[EdnaMode]

Michael Tubbs, the 27-year-old mayor of Stockton, California, has a radical plan to combat poverty in his cash-strapped city: a “no strings” guaranteed basic income of $500 a month for its residents.

Starting in early 2019, Tubbs plans to provide the monthly stipend to a select group of residents as part of a privately funded 18-month experiment to assess how people use the money.

“And then, maybe, in two or three years, we can have a much more informed discussion about the social safety net, the income floor people deserve and the best way to do it because we’ll have more data and research,” Tubbs told Reuters.

The city has not yet decided how many people will receive income from the trial project, which is funded by The Economic Security Project, a philanthropic network co-chaired by Facebook co-founder Chris Hughes.

The idea of governments providing a universal basic income to their citizens has been gaining traction globally. The Finnish government is running a two-year trial to provide 2,000 unemployed people with monthly payments of approximately $660.

[AppyPappy]

Immediately, the response was “It’s not enough”.

[Toughluck_freeper]

Typical lying headline.

It should say:

‘City strives for increased poverty by encouraging dependency instead of work ethic’

[albie]

“18-month experiment to assess how people use the money. “

...most will invest in a high yield dividend paying stock such as Chevron. Hahahahahahahahahahahahahaha

[KC_for_Freedom]

That is the key question.

Suppose someone is currently making 26,000 a year and in poverty. AIs he making bad choices? We don’t know, I just made him up. But we do wonder whether people will use the extra money, which technically is “extra” money and could be used for investment. Do they use the extra money and just get stoned? or do they start a business and get out of the bottom percentile? And if we learn who uses the “gift” wisely we can direct the safety net in more appropriate directions in the future.

I hope they get some useful data, my guess is that most people will get a little benefit but not make any major change in their lifestyle. So it will end up with a negative effect of not encouraging a work ethic and leaving the recipients in poverty. But I don’t know.

[drypowder]

Can the democrats who run that city possibly get any dumber? Bernie Sanders is certainly their hero.

[dfwgator]

What could possibly go wrong?

[going hot]

When incomes are raised, through business practice or by decree, there is still a median, and there will always be a left side of the curve.

[fr_freak]

How exactly is adding $6,000 per year supposed to do anything for people at the poverty level living in a place like Stockton? Talk about crumbs!

That's just the cash. Most of these people are probably living in Section 8 or public housing, and receive free medical care, and, given that this is Stockton, I'd guess that somewhere around half of them will be earning unreported income from the Mexican underground economy.

But, either way, this plan is going to fail spectacularly, and only a truly deluded fool without the slightest grasp on reality would attempt something like this.

[publius911]

That is unsustainable, and can't last long.
The idiot black mayor who created the stupidity can't last too long either

[alexander_busek]

Do they use the extra money and just get stoned? or do they start a business and get out of the bottom percentile?

In my personal experience (observing others), many a person getting a windfall of $500 will go out and "celebrate" first - and end up spending not only the initial $500, but even more.

Regards,

[TBP]

The taxes to support this will create more poverty, much to the delight of the progressives who support it.

[Jack Hammer]

Soon to be one of the most populous, and bankrupt, places on the planet.

[elbook]

and where is the money for this coming from??

taxpayers quickly get tired of paying for the useless ‘experiments’ of the left.

political change coming.

[KC_for_Freedom]

I do agree with your assessment. But when they realize that the windfall is monthly, there has to be a percentage of folk who will do something positive with the money.

There will be some who back of on other forms of income because of this. These are the ones who should be restricted from this type of activity.

[alexander_busek]

There will be some who back of[f] on other forms of income because of this. These are the ones who should be restricted from this type of activity.

It might not be the case with this program in Stockton, but other programs have actually lauded the "Basic Income" as "relieving recipients from the necessity of economic activity," "freeing them from drudgery," and "allowing them to pursue more-satisfying - e.g., creative and expressive - forms of activity."

So you have to realize that your hopes (however modest) for this program are diametrically opposed to the goals of the program founders.

Regards,