Chicago considers universal basic income

Jose M. Osorio | Tribune News Service | Getty Images

Mayor Rahm Emanuel speaks at a press conference at the end of a Chicago City Council meeting in the City Council Hall of Chicago City Hall on Wednesday, July 25, 2018.

The city of Chicago plans to set up monthly payments for struggling families to cover the cost of food, shelter or transportation.

Mayor Rahm Emanuel regards these monthly payments as a universal income for the people of Chicago. Ameya Pawar, alderman for the city's north end, submitted a resolution in June calling on the mayor to launch a program that would pay $ 500 a month to 1,000 families, the Chicago Tribune reported.

Families would receive money without any conditions.

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Emanuel, who is not looking for a third term, will form a task force that will review these monthly payments, which will include Pawar. The team will meet shortly and will publish a report in a few months. According to the Tribune, Pawar believes that paying monthly will help fight the city's significant job losses due to automation and offshoring activities.

"Chicago would be the biggest city in the country to take this step," said Pawar at the Tribune. "I think the mayor sees this as a chance to lead the way as cities try to fight poverty and income inequality at a time when the federal government is not addressing these issues. This would be a problem inherited from the past [for Emanuel]. "

Although Pawar, who is not looking for another term, submitted a proposal in June, the working group will not use it as a basis for his plan.

The timing of the task force announcement has been criticized, the Tribune reported. This comes shortly after the mayor declared that he would not stand for re-election. Thus, even if he can boast of having created the team, his successor will face the challenge of implementing the plan.