Nationwide Basic Income’s Effect After Six Years
By Jeff Ihaza for The Outline - In recent years, spurred by advances in workplace automation, researchers and industry titans like Elon Musk have espoused the necessity of a universal basic income, payments made by the government to all citizens regardless of their employment. The general idea started picking up steam from a policy perspective in the 60s, when Milton Friedman proposed a negative income tax which would guarantee all Americans a minimum income. Proposals for a basic income generally receive familiar pushback from opponents, who say giving people free money will disincentivize them from working. In 2011, in response to heavy cuts to oil and gas subsidies, Iran implemented a program that guaranteed citizens cash payments of 29 percent of the nation's median income, which amounts to about $1.50 every day. (In the U.S. such a measure would translate to about $16,000 per year.) Now, six years later, the results of that measure were released in a report by economists Djavad Salehi-Isfahani and Mohammad H. Mostafavi-Dehzooeifrom for the Economic Research Forum. The report found no evidence for the idea that people will work less under a universal income, and found that in some cases, like in the service industry, people worked more, expanding their businesses or pursuing more satisfying lines of work.