Getting Income Without Working For it

How the future of social welfare is changing

Ric Edelman: It's Thursday, July 27th. You've heard the phrase Universal Basic Income. Let me give you an idea of what's going on. Chicago is now giving $500 every month to 3,250 people. These 3,000 people are getting this 500 bucks a month every month for two years. They're getting it via a debit card or direct deposit. These people were picked randomly from nearly a quarter of a million applicants. They've got household income under $35,000 a year. What do they do with the money? Whatever they want. Chicago is giving them no restrictions.

This is not the only example of cities or states providing money to its residents. In Stockton, California, back in 2019, they began a two year pilot program called Seed, the Stockton Economic Empowerment Demonstration. They gave $500 a month to 125 low-income residents. In Compton, California, the following year, they had a similar program. They provided up to $600 a month to 800 low income residents.

In Jackson, Mississippi, they launched a program called the Magnolia Mother's Trust; $1,000 a month to 20 black mothers with young children. They got that money for a year. Alaska's been doing this since 1982. They generate so much revenue from oil that not only is there no income tax in the state. Everybody gets monthly income. It amounts to over $1,100 these days.

The bottom line is this: The economic theory is that people who are low income are struggling to pay bills and very, very many cases they're struggling to provide themselves with homes or to be able to feed their children or provide them with medicine. This creates a downward spiraling scenario. It results in joblessness. It results in crime and abuse. It results in a decay in the social structure.

So the theory is let's give people money. These are generally honest, mature individuals who simply don't have cash. By giving them the money, they are able to improve their situation in life, get themselves homes, get themselves the opportunity to buy a car, pay for public transportation, to get to work, get the clothing they need to be able to get into the workplace. And by getting a job, they're able to improve their financial situation in life. That's the theory.

These experiments are going on all around the country, and there's debate as to whether they're going to work or not. And if they do work, there's debate over where the money will come from to pay for these programs. But there's no question about it, universal basic income is an idea you'll be hearing a lot more about, especially as we enter the presidential campaign of 2024.

You know, every week my wife, Jean, produces her own podcast. It's available at Self-care with Jean.com and her podcast premiers every Thursday. You can listen to Jean's podcast Anytime you Like, everywhere that you get your podcasts, subscribe at Self-care with Jean.com.

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