Austin experimented with giving people $1,000 a month. They spent the no-strings-attached cash mostly on housing, a study found.
www.businessinsider.com
A guaranteed-basic-income plan in Austin that gave low-income residents $1,000 a month appeared to reduce housing insecurity.
  • A guaranteed-basic-income program in Austin gave people $1,000 a month for a year.
  • Most of the participants spent the no-strings-attached cash on housing, a study found.
  • Participants who said they could afford a balanced meal also increased by 17%.

A guaranteed-basic-income plan in one of Texas’ largest cities reduced rates of housing insecurity. But some Texas lawmakers are not happy.

Austin was the first city in Texas to launch a tax-payer-funded guaranteed-income program when the Austin Guaranteed Income Pilot kicked off in May 2022. The program served 135 low-income families, each receiving $1,000 monthly. Funding for 85 families came from the City of Austin, while philanthropic donations funded the other 50.

The program was billed as a means to boost people out of poverty and help them afford housing. “We know that if we trust people to make the right decisions for themselves and their families, it leads to better outcomes,” the city says on its website. “It leads to better jobs, increased savings, food security, housing security.”

While the program ended in August 2023, a new study from the Urban Institute, a Washington, DC, think tank, found that the city’s program did, in fact, help its participants pay for housing and food. On average, program participants reported spending more than half of the cash they received on housing, the report said.

  • lolcatnip@reddthat.comEnglish
    2411·
    10 months ago

    This trope is dumb and you should feel bad for repeating it. It shows a truly shocking lack of insight into even the most basic middle-school-level economic principles.

    • Black616Angel@feddit.de
      41·
      10 months ago

      In germany we had a 10k€ bonus for all buyers of an electric car. After the bonus ended, all the cars suddenly cost 7k-10k less in about 2 months.

      • EldritchFeminity@lemmy.blahaj.zone
        6·
        10 months ago

        I would argue that this is an example of how the reduction of consumer demand caused companies to lower their prices, unless there was an increase of 7k-10k when the program started as well.

      • lolcatnip@reddthat.comEnglish
        1·
        10 months ago

        So a subsidy on a specific product category affected prices on that category? That doesn’t prove anything about UBI. UBI isn’t a subsidy on rent—or a subsidy at all—so your example is irrelevant.