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Universal Basic Income experiments and other projects seeking to distribute free money seem great, so many people struggle to make ends meet because of their limited income.
In the United States, many lawmakers have asked federal and / or state governments to try these economic policies. A recent proposal actually asks people to receive government money even if they do not want to work!
The legislators and their supporters defending such ideas, it would be their duty to look beyond the US border to countries that have already attacked the basic income.
Finland took the lead and many Finns acknowledged that the idea was not good.
No strings attached Free money
Finland has piloted a universal universal basic income program to help its low income citizens. In simple terms, they have received money from the government, whether they have a job or even want to work.
Adopted in 2017, the first results published this week indicate that the disadvantages outweigh the economic benefits.
Participants received monthly payments of $ 634 from January 2017 to December 2018. Officials wanted to know if payments could provide a safety net for those looking for work. For those who needed work to help them until they found better paying jobs, it was thought that these payments were useful.
Finland's incursion into providing free money cost the government about $ 22.7 million. The expected positive effect on the country's employment rate has not materialized.
Early results showed that although employment levels did not improve, participants said they felt happier and less stressed. Unfortunately, the problem of returning people who have lost their jobs in the labor market remains.
The pioneering test on universal basic income in Finland revealed no real impact on employment, but a considerable impact on well-being. He also showed that "people have more confidence in their future and their ability to influence it" https://t.co/Y3niXm5IZv
– Basia Cummings (@basialcummings) February 8, 2019
You do not want to work? That's okay – here's your check
Democrats in the US House of Representatives unveiled last week a revolutionary plan called the Green New Deal. Among the ambitious – if not ridiculous – ideas included in the plan is the one that is very similar to the basic income test in Finland.
The architects of the agreement are very concerned that the rich enjoy an exorbitant lifestyle, while others live in poverty because of their low incomes. To remedy this divide, the legislator's Green New Deal promises a guarantee of economic security to whoever "will not want to work".
In hearing "not wanting to work," some lawmakers who signed the resolution of the agreement began to retreat. Critics shouted bloody murder.
To be clear, the official resolution explaining the details of the agreement does not include the language "does not want to work". However, a summary document published by the first year representative of the House, Alexandria Ocasio-Cortez, includes it.
We do not know how many legislators will vote for this resolution. Even Speaker of the House of Representatives, Nancy Pelosi, seemed genuinely confused about the content of the resolution.
Finns want a lucrative job – not just free money
As the basic income test in Finland shows, the problem of free money distribution is that these payments do not encourage unemployed workers to find a new job. What is the point of working or looking for a job if you still want to get paid?
Interestingly, many Finns have made fun of the basic universal income system. Some said it helped, but they wanted nothing more than working – and earning their own income.
Here is an overview of the Finns' reaction to the universal basic income experience:
Featured image of Shutterstock
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