A new study (view below) shows that giving Americans $1,000 a month makes them work less and earn less over time. The research, which tracked 3,000 people for three years, found that while recipients enjoyed more leisure time, their overall income dropped because they worked fewer hours and didn’t improve their job skills or pursue better employment. Surprisingly, despite more entrepreneurial intentions, there wasn’t a significant increase in new businesses. The study challenges the idea that free money boosts productivity and raises questions about the effectiveness of Universal Basic Income compared to existing welfare programs.
According to a new study, paying Americans $1,000 a month does exactly what common sense would have predicted: it disincentivizes them from working, which leads to them working less and earning less over time.
Illus: The MIT Press Reader
A three-year study conducted by the National Bureau of Economic Research with 3,000 participants found that p...
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