A universal basic income (UBI) scheme is being implemented in California as a trial to see how well it works to give people a guaranteed monthly income payments. The scheme will distribute $500,000 in monthly payments to 30 lucky participants.
It is the height of hypocrisy to ask the US government, which already owes $22 trillion, to pay for giving everyone in the country free money.(Photo: https://fee.org/)
A group of IT entrepreneurs and benefactors are providing funding for the initiative, known as the Stockton Economic Empowerment Demonstration (SEED). The program’s objective is to ascertain whether UBI can aid in reducing poverty and enhancing low-income people’s financial security.
A comparable pilot program that was run in Stockton, California, in 2019 served as the model for the SEED program. Through the initiative, 125 residents received monthly direct payments of $500 over the course of 18 months. According to the program’s findings, the majority of participants used their financial assistance to cover expenses for necessities like food and electricity, and the direct payments helped them feel less stressed out about their finances in general.
30 people will get a $500 monthly income guarantee through the new SEED program for a period of two years through direct payment. Low-income Richmond, California residents who are at least 18 years old and are not currently receiving government assistance are eligible for the program. Unauthorized immigrants may also participate in the program.
From a pool of applicants, participants will be chosen at random, with consideration given to those who have faced financial struggles as a result of the COVID-19 outbreak. The direct payments will be made on a monthly basis with no conditions or specifications regarding how the money should be used.
Many UBI pilot initiatives are currently being carried out in cities all throughout the United States, including the SEED program. Policymakers and economists interested in finding novel approaches to reduce income inequality and enhance the financial stability of low-income people are closely monitoring these programs.
UBI advocates contend that it might help close the widening income gap in the US and act as a safety net for those who are struggling to make ends meet. Yet, some claim that UBI is overpriced and can discourage employment and production.
Regardless of the arguments for or against UBI, the SEED program is a critical step in developing fresh strategies for combating inequality and poverty. When the program gets started, it will be crucial to carefully watch its outcomes to see if UBI can give those in need a path to financial stability.
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