Researchers in Germany will give people $1,430 per month whether they have a job or not as part of an experiment to determine whether universal basic income could work in the country.
The three-year study will allow researchers to know how it affects recipients’ well-being and the economy.
120 people will receive $1,430 (€1,200) per month for three years and they will be monitored to see how their behaviors and attitudes change.
Another group of 1,380 participants will not receive payments but will still have their behaviors and attitudes monitored.
Proponents argue that the idea would enhance people’s well-being and reduce inequality by giving them more financial security.
However, opponents say it would discourage people from working hard and it would be too expensive.
Conducted by the German Institute for Economic Research, the study has been funded by 140,000 donations and will run for three years.
Jurgen Schupp, who is leading the study, said to the German newspaper Der Spiegel: “The debate about the basic income has so far been philosophical at best and a war of faith at worst.
“It is – on both sides – shaped by clichés: Opponents claim that with a basic income people would stop working in order to sit on the couch with fast food and streaming services.
“Proponents argue that people will continue to do fulfilling work, become more creative and charitable, and save democracy.”
Schupp added: “Incidentally, these stereotypes also flow into economic simulations as assumptions about the supposed costs and benefits of a basic income.
“We can improve this if we replace these stereotypes with empirically proven knowledge and can therefore lead a more appropriate debate.”
Universal basic income is the idea that each citizen will receive money from the government, usually once a month, regardless of their employment status or income, replacing benefits.
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Replaced!