[MarchHare]

Originally Posted by mustache ride

I did. If you want to point me to the smoking gun i will gladly take another look but all i see is an editorial with anecdotal evidence.

In 1964, president Lyndon B. Johnson declared a ‘war on poverty.’ Democrats and Republicans were united in their ambition to fundamentally reform social security. But first more testing was needed.

Several tens of millions were made available to test the effects of a basic income among 10,000 families in Pennsylvania, Indiana, North Carolina, Seattle and Denver. The pilots were the first large-scale social experiments differentiating between various test and control groups. The researchers were trying to find the answers to three questions. 1: Does a basic income make people work significantly less? 2: If so, will it make the program unaffordable? 3: And would it consequently become politically unattainable?

The answers: no, no and yes.

The decrease in working hours turned out to be limited. ‘The ‘laziness’ contention is just not supported by our findings’, the chief data analyst of the Denver experiment said. ‘There is not anywhere near the mass defection the prophets of doom predicted.’ On average, the decline in work hours amounted to 9 percent per household. Like in Dauphin, the majority of this drop was caused by young mothers and students in their twenties.

‘These declines in hours of paid work were undoubtedly compensated in part by other useful activities, such as search for better jobs or work in the home,’ an evaluative report of a Seattle project concluded. A mother who had never finished high school got a degree in psychology and went on to a career in research. Another woman took acting classes, while her husband started composing. ‘We’re now self-sufficient, income-earning artists’, they told the researchers. School results improved in all experiments: grades went up and dropout rates went down. Nutrition and health data were also positively affected – for example, the birth weight of newborn babies increased.

And this:

In the 2010 work Just Give Money to the Poor, researchers from the Brooks World Poverty Institute, an independent institute based at the University of Manchester, give numerous examples of money being scattered successfully. In Namibia, malnourishment, crime and truancy fell 25 percent, 42 percent and nearly 40 percent respectively. In Malawi, school enrollment of girls and women rose 40 percent in conditional and unconditional settings. From Brazil to India and from Mexico to South Africa, free-money programs have flourished in the past decade. While the Millenium Development Goals did not even mention the programs, by now more than 110 million families in at least 45 countries benefit from them.

Researchers sum up the programs’ advantages: (1) households make good use of the money, (2) poverty decreases, (3) long-term benefits in income, health, and tax income are remarkable, (4) there is no negative effect on labor supply – recipients do not work less, and (5) the programs save money. Why would we send well-paid foreigners in SUVs when we could just give cash? This would also diminish risk of corrupt officials taking their share. Free money stimulates the entire economy: consumption goes up, resulting in more jobs and higher incomes.

‘Poverty is fundamentally about a lack of cash. It's not about stupidity,’ author Joseph Hanlon remarks. ‘You can't pull yourself up by your bootstraps if you have no boots.’