Evidence for UBI

Several studies of pilot programs show that giving people small amounts of money each month really helps them. (The Best Welfare Reform: Give Poor People Cash - The Atlantic, Do the Poor Waste Transfers on Booze and Cigarettes? No) One concern about giving people money is that they will "waste" it. The studies report little evidence of waste. Instead, recipients tend to make good decisions and the money helps them pay for unexpected expenses, improves their mental health, and gives them time and security to search for and take better jobs. 

The Editorial Board of the WSJ thinks that the study in Stockton is flawed and does not contain evidence that the UBI is a success. (WSJ, March 2021)

UBI stands for Universal Basic Income. UBI is the proposal that the government pay everyone a basic income. This basic income would be a guaranteed minimum for everyone and everyone would pay taxes on income greater than the guaranteed minimum.

Milton Friedman advocated for a Negative Income Tax (NIT) in the 1960s. The NIT would also guarantee a guaranteed minimum income.

Most observers agree that UBI or NIT addresses poverty more effectively and efficiently than the minimum wage.