Universal Basic Income (UBI) programs have been a subject of interest and debate across the US. These initiatives, aimed at providing a basic level of financial stability, have been trialed in various forms and scales.
In fact, you might be surprised to learn that there have been seven notable UBI programs tried out in the US. Each one unique in its execution and outcomes, these trials offer fascinating insights into the potential of UBI.
So, what were these programs exactly? And what did they aim to achieve? Even more importantly, what were the results, and what can we learn from these experiments?
Well, that’s precisely what we’re about to delve into. We are going to take you through a tour of the seven UBI programs that have been tested in the US, shedding light on their objectives, implementations, and outcomes.
So, the big question that begs: What were the real-world impacts of these UBI programs? Let’s get started and explore that next.
1. Alaska Permanent Fund Dividend
The Alaska Permanent Fund Dividend (PFD) is probably the closest thing to a UBI program that the US has seen on a large scale.
Established in 1982, this unique initiative is funded by the state’s oil revenue.
Every Alaskan resident, regardless of age or income level, is entitled to an annual payout from the fund.
The dividend amount varies each year, depending on the fund’s performance. In 2019, for example, each resident received $1,606.
A key aspect of the PFD is its universality. Unlike targeted welfare programs, the PFD is not means-tested.
This means that it’s available to everyone in Alaska – from the poorest to the richest.
The PFD has been instrumental in reducing poverty rates in Alaska.
According to a study from the University of Alaska Anchorage, without the PFD, the state’s poverty rate would have been 25% higher.
Furthermore, despite concerns that such a program could disincentivize work, studies have found that the PFD has had no significant impact on overall employment levels in Alaska.
Next up, let’s examine a UBI experiment that took place on a city level.
2. Stockton Economic Empowerment Demonstration
The Stockton Economic Empowerment Demonstration (SEED) was a UBI pilot program that took place in Stockton, California.
This initiative ran from February 2019 to February 2021, making it one of the most recent UBI experiments in the US.
Under SEED, 125 participants received $500 per month for two years with no strings attached.
The residents were randomly selected from neighborhoods with a median income at or below $46,033.
SEED was designed to explore how an extra $500 per month could impact people’s lives.
The program’s findings were interesting and offered some valuable insights into the potential benefits of UBI.
According to the SEED final report, recipients used the majority of the funds on basic needs such as food, utilities, and auto care.
Additionally, full-time employment increased among recipients during the program, challenging the assumption that UBI discourages work.
Moreover, SEED recipients reported less stress and depression than those in the control group, suggesting that UBI could have significant mental health benefits.
SEED’s success has sparked interest in other cities across the US, leading to similar pilot programs being initiated. Let’s delve into one of these next.
3. Magnolia Mother’s Trust
Magnolia Mother’s Trust (MMT) is a groundbreaking UBI initiative focused on low-income single Black mothers in Jackson, Mississippi.
This program, initiated by the nonprofit Springboard to Opportunities in collaboration with the Economic Security Project, started in 2018.
Under MMT, selected mothers receive $1,000 per month for a year, with no conditions attached.
The goal is to challenge the traditional welfare system’s stereotypes and biases, and to provide a more effective way to fight poverty.
The initial pilot involved 20 mothers, and the results were promising. According to Springboard to Opportunities, the extra income helped these families secure better housing and educational opportunities for their children.
It also reduced financial stress and allowed these mothers to invest in themselves – some even started their own businesses.
Inspired by the success of the pilot, the MMT expanded its program in 2020 to include more mothers.
It continues to provide much-needed insights into how UBI could help marginalized communities.
Coming up next, we’re going to discuss an ambitious UBI experiment that involved an entire town.
4. Gary Income Maintenance Experiment
The Gary Income Maintenance Experiment (GIME) was an ambitious UBI trial that took place in the 1970s in Gary, Indiana.
The experiment was part of a series of income maintenance studies conducted across the US to investigate the potential impacts of a guaranteed income.
In the GIME, over 1,800 low-income families were selected to receive a basic income.
The amount varied based on the family’s size and composition, but it was designed to lift them out of poverty.
The experiment ran for three years and tracked several outcomes, including work behavior, school performance of children, and family composition.
It was one of the first experiments to provide empirical evidence on the effects of UBI.
Interestingly, the GIME found little evidence that receiving a basic income led to a significant reduction in work effort.
This challenged the commonly held belief that such programs could discourage employment.
In addition, the study found positive effects on children’s school performance, suggesting that UBI could have broader social benefits.
Next on our list is a UBI program with a tech twist. Let’s move forward and take a look.
5. Y Combinator’s UBI Experiment
Y Combinator, a well-known startup accelerator based in Silicon Valley, launched a UBI experiment in 2016.
The organization was interested in studying how people’s behavior and attitudes might change if they received a guaranteed income.
The experiment took place in two states – California and Michigan.
Around 3,000 participants were randomly selected to receive $1,000 per month for up to five years. A control group of 2,000 people were also selected but did not receive the monthly payments.
The study aimed to collect data on a wide range of outcomes, including physical health, mental health, financial wellbeing, time use, and political and social attitudes.
While the results of the Y Combinator trial are still pending, it’s one of the most comprehensive UBI studies undertaken in the US to date.
It’s expected to provide valuable insights into how a long-term UBI could impact individuals and communities.
Our next UBI program shifts focus from individuals to entire communities. Let’s dive into that next.
6. Cherokee Nation’s Casino Dividend Program
The Cherokee Nation’s Casino Dividend Program offers a unique example of a community-wide UBI program.
This initiative, funded by revenues from tribal casinos, has been operational since 1997.
Under this program, every member of the Cherokee Nation, regardless of age or income level, receives a semi-annual payment. In recent years, these payments have averaged around $2,000 to $3,000 per year.
While not a traditional UBI experiment, the Casino Dividend Program has provided valuable data on the potential impacts of a basic income.
Research has found that the extra income has led to improved education and health outcomes among the Cherokee, particularly for children.
For instance, a longitudinal study found that children who benefited from the dividends were less likely to commit minor crimes as teenagers and were more likely to graduate high school on time.
Moreover, it was observed that parents who received the dividends reported better mental health, which in turn led to improved parenting practices.
Next up is our final UBI program – one that’s still in progress and attracting widespread attention. Let’s explore it.
7. Mayors for a Guaranteed Income
Mayors for a Guaranteed Income (MGI) is a coalition of mayors across the US advocating for UBI. Founded in 2020 by Stockton’s former mayor Michael Tubbs, MGI aims to create UBI pilot programs in cities nationwide.
Each city in the MGI network designs its own UBI program tailored to its specific needs and demographics.
For instance, the city of St. Paul, Minnesota launched a pilot in 2021 to provide $500 per month to 150 low-income families for up to 18 months.
The MGI network has grown rapidly, with over 40 mayors now participating.
These mayors represent diverse cities from across the political spectrum, indicating broad interest in UBI as a policy solution.
While most MGI pilots are still in their early stages, they represent a significant development in the UBI movement.
They’re expected to provide rich data on how UBI can be implemented and tailored at the local level to meet specific community needs.
Looking Forward: The Future of UBI in the US
The exploration of Universal Basic Income programs in the US is an evolving journey.
From Alaska’s Permanent Fund Dividend to the budding initiatives of Mayors for a Guaranteed Income, these programs represent a dynamic and multifaceted exploration of UBI’s potential.
While each program is unique, they all share a common goal: to understand how providing a guaranteed income can impact individuals, families, and communities.
The data gathered from these experiments is invaluable, helping policymakers and advocates shape the future discourse on UBI.
Yet, understanding UBI isn’t just about knowing the programs that have been tried.
It’s about staying informed on upcoming trials, understanding the evolving research, and keeping an eye on how UBI is being discussed in political circles.
As we move forward, we invite you to continue exploring UBI with us.
Whether you’re an enthusiast, a skeptic, or somewhere in between, there’s always more to learn and understand about this fascinating policy proposal.
So keep questioning, keep learning, and let’s navigate the future of UBI together.
