Michael Townsend

Interesting new findings from the huge 12-year universal basic income experiment in Kenya: "Given how entrepreneurially minded the recipients are, the researchers found no evidence that any of the payments discouraged work or increased purchases of alcohol... In fact, so many people who used to work for wages instead started businesses that there was less competition for wage work, and overall wages in villages rose as a result." Tons of entrepreneurship happening as well as higher wages for wage workers! There are three groups being compared here. One group got a UBI for 2 years, one group got the same amount of money as the monthly 2-year group all at once, and one group is getting the same amount each month as the first group but for 12 years. Basically, the lump sum group saw mostly better outcomes than the 2-year monthly group. They started even more businesses, but they were a bit more stressed and not as happy. And the 12-year monthly UBI group is the happiest. "The long-term monthly recipients are happiest of all, and some of that is because they know it’s going to be there for 12 years ... It provides mental health benefits in a stability sense." The 12-year group is also seeing the best of both worlds, because those who want lump sums are choosing to make that option happen collectively. "Long-term monthly payments seem to offer the best of all worlds because they enable people to use ROSCAs to generate lump sum payments when they want them. That enables flexibility: People who want monthly payments can get them, and people who need cash upfront can organize with their peers to get that." vox.com/future-perfect/2023/…