A common question about universal basic income, or UBI, is how people spend the money, but early trials are showing promising results.
  • Interest in universal basic income has grown due to the pandemic, Elon Musk, Sam Altman, and economic pain.
  • A common question about the concept is how people spend the cash.
  • Experts and initial trials suggest UBI is mostly spent on essentials like food and housing.

Interest in a universal basic income (UBI) is only intensifying as the pandemic and other crises reveal the shortcomings of emergency aid programs, the likes of Elon Musk and Sam Altman warn AI will make human workers obsolete, and a one-two punch of historic inflation and steeper borrowing costs pinch household budgets.

UBI generally refers to a recurring cash payment to all adults in a certain population, regardless of their wealth and employment status, and with no restrictions on how they spend the money.

It’s been hailed as a safety net in case people lose their jobs or can’t work; a mental-health aid as it relieves financial worries; a buffer that lets people be more selective about which job they take; a tool to combat poverty, inequality, and the pain of unemployment; and a way to recognize the value of domestic labor like child and elderly care.

  • Rentlar@lemmy.ca
    61·
    8 months ago

    Totally anecdotal but I find that if people only have enough money to last them to their next meal or drug withdrawal period they won’t think farther than that, and that’s really all anyone can hope for if they are out begging on the street.

    If they can be provided the security of getting through a week or a month financially then they will do better to plan it out and generally won’t try to spend it all in one place.

    • BigMikeInAustin@lemmy.worldEnglish
      4·
      8 months ago

      It’s that strange need to see poor people suffering.

      Give a person without a home or possessions a few bucks and they will have to buy hot food. Mostly fast food. Then housed people ask why the person in need is “wasting” the money on unhealthy fast food instead of cooking at home with pots they don’t have.

      Give the person steady money, and they can then buy a pan, and maybe a hot plate, and then they can buy inexpensive uncooked food they can cook themselves. And that food is healthier and cheaper, meaning the money given to them steadily goes much further than a random few dollars.

      Another example is that food stamps often only apply to the smallest container of food. The most price sensitive people are forced to buy the worst value food. The legislators specifically decided to waste taxpayer money on the worst valued food to keep the poorest people from a better life.