A California City Tested Universal Basic Income. Here's How Recipients Spent the $500 in Free Money | Fortune
"The first data from an experiment in a California city where needy people get $500 a month from the government shows they spend most of it on things like food, clothing and utility bills.
The 18-month, privately funded program started in February and involves 125 people in Stockton.
It is one of the few experiments testing the concept of “universal basic income,” an old idea
getting new attention from Democrats seeking the 2020 presidential nomination.
...Matt Zwolinski, director of the Center for Ethics, Economics and Public Policy at the University of San Diego, said people aren’t likely to change their behavior if they know the money they are getting will stop after a year and a half. That’s one reason why he says the experiment is
“really more about story telling than it is about social science.”
Plus, he said previous studies have shown people don’t spend the money on frivolous things.
“What you get out of a program like this is some fairly compelling anecdotes from people,” he said. “That makes for
good public relations if you are trying to drum up interest in a basic income program, but it
doesn’t really tell you much about what a basic income program would do if implemented on a long-term and large-scale basis.”..."
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