Does universal basic income actually work?: UBI advocates
New to economics
Twenty-seven years of data
In 1997, the Eastern Band of Cherokee Indians opened a casino and began distributing profits to every enrolled member. $4,000 to $6,000 a year. No strings. No means test.
Twenty-seven years later: labor force participation did not decline. Children’s educational outcomes improved. Behavioral disorders among minors dropped 40 percent. The improvement tracked with duration of exposure — kids who received the dividend from birth did better than kids who started at ten.
Nobody in Congress has cited this data in a floor debate in five years.
We have run the experiments. Stockton. Finland. Kenya. Namibia. India. Manitoba in the 1970s. People given cash fix their cars. They pay off predatory debt. They enroll in the training program they deferred because the daycare copay made the math impossible. Employment goes up, not down.
The work-identity defenders tell us work provides meaning. We agree. We disagree that coerced labor under threat of homelessness is the kind that provides it. The conditional pragmatists want strings because strings are sellable. Every condition recreates the bureaucracy that makes the current system fail. TANF spends more on caseworkers than it distributes to families in some states. The mutual aid networks inspire us and terrify us — inspire because they prove humans feed each other when institutions won’t, terrify because at national scale they’re a fantasy that lets governments off the hook.
The funding is real. Consolidate existing programs — you recover over $1 trillion. Add a VAT and a carbon levy. The Roosevelt Institute projected 12.56 percent GDP growth over eight years.
Where we concede ground: Every pilot is small and short. None requires participants to fund it through taxes. We may be right about policy, wrong about politics.
What would change our mind: A 10,000-person, five-year guaranteed income producing significant declines in employment or community cohesion.
Read the full synthesis: Does universal basic income actually work?