New studies demonstrate what should be obvious: Universal basic income programs kill initiative.
By Jason L. Riley. Excerpts:
"Weavers and bank tellers feared for their livelihoods at the time, but
the Industrial Revolution led to significantly more hiring in the
textile sector, and banks increased employment after ATMs were
introduced."
"In
recent years more than 150 basic-income pilot programs in 35 states
have been initiated. One of the pilots, backed by Mr. Altman, began in
2020 and provided low-income participants in Texas and Illinois with
$1,000 a month, while a control group received $50 a month. After three
years of payments, researchers found that both groups worked slightly
more—which may have resulted from the pilot’s starting during the
pandemic and ending as the economy bounced back. But they also found
that people who received $1,000 put in fewer hours on the job than
people who received $50, suggesting that the higher payments provided a
disincentive to work.
Last month, economist Kevin Corinth and Hannah Mayhew
of the American Enterprise Institute released a survey of 122
basic-income pilots that took place between 2017 and 2025 in 33 states
and the District of Columbia. They reported mixed results. Employment
increased in some programs and decreased in others, and the role of the
pandemic was difficult to assess.
The
pilot programs varied “in their designs, data collection and study
quality,” and only 30 of them provided employment outcomes. Hence, the
authors counsel against sweeping policy conclusions based on the
results. Most experiments were small, and the evaluations “rely
exclusively on survey data and are thus subject to reporting bias and
non-response bias.” Yet Mr. Corinth and Ms. Mayhew did find that the
larger and more credible studies—such as the one Mr. Altman
backed—showed that unearned income has a negative impact on a person’s
willingness to work."
"President Lyndon Johnson’s War on Poverty in 1964 launched the modern social safety net"
"The welfare system attempted to replace family breadwinners, but it
turned out that those breadwinners were providing more than money. The
result of these government interventions was more broken homes,
antisocial behavior and blighted neighborhoods."