Universal Basic Income (UBI) is essentially a program whereby the government provides no strings attached cash assistance. It has been tested throughout the world for decades and gained popular attention in the U.S. over the past several years. In the past, we’ve discussed Alaska UBI’s program (one of the longest running in the U.S.), but over the years more cities are taking it upon themselves to pilot new schemes. Some cities are even tying the movement to providing free or reduced transit.

Political and philosophical reasoning aside, UBI has merits to reduce poverty, improve mental health, and aid individuals or families. Within the past month there has been an increase in U.S. local governments proposing new UBI programs. The increase follows news the City of Chicago would launch a program which will pay $500 a month to 5,000 low-income families.

This week’s digest looks at UBI around the U.S., where it has been experimented with around the globe, and some benefits of the programs.

IN FOCUS

Across the Country Places Continue to Experiment

• Montgomery County weighs guaranteed income pilot, which would give recurring cash payments to 300 families Washington Post

• Fremont City Leaders Vote to Study Universal Basic Income Pilot Program NBC Bay Area

• LA Families May Get Up To $1,000 A Month Through The City's Universal Basic Income Program LAist

• Chicago poised to create one of the nation’s largest ‘guaranteed basic income’ programs Washington Post

Coming to a City Near You?

• Will Hartford’s guaranteed-income experiment reduce stress levels among participants? Researchers hoping to screen for stress hormones to find out Hartford Courant

• Could a guaranteed basic income program be coming to Detroit? WXYZ Detroit

• Hudson expands UBI pilot WAMC Northeast Public Radio

What Has Already Been Done

• Free Money: The Surprising Effects of a Basic Income Supplied by Government Wired

• California Program Giving $500 No-Strings-Attached Stipends Pays Off, Study Finds NPR

• Alaska’s free money for residents hints at how universal basic income may work Society of Science

CHART OF THE WEEK

The Bottom Line:

• UBI is not new and has been around for decades.

• The pandemic has given new momentum to the program around the world.

• Small scale trials have shown improved mental health and other beneficial outcomes.

INTERESTING READS

Universal basic income and covid-19 pandemic The BMJ

• The Issue: “Since March 2020, rising inequality and drastic changes to the labour market have forced governments to implement economic initiatives, such as basic income programmes, that previously would have been politically untenable.”

• Key Statement:

  A review of 24 cash transfer trials in sub-Saharan Africa looked at social determinants of health. All eight studies examining the financial effect found that short term poverty was reduced. Nine of 11 trials looking at healthcare use reported a positive effect, including an increased likelihood to seek healthcare when seriously unwell.

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