UBI Trials Show Prospects and Challenges That Will Guide Future Policy

While UBI trials take place across cities from Stockton, CA to Jackson, MS, and many in between, researchers and policy makers note the benefits of cash transfers without conditions, but consider the concerns of cost, scalability, and the effects over time.

The Stockton Economic Empowerment Demonstration was a two year, $500 a month trial, watched closely by many. Results showed a reduction of income volatility and mental health improvements. In addition, paid work greatly increased. These results were contrary to the belief that cash participants would choose to not work. Results of other studies in Finland, Kenya, and Canada displayed the gains of cash transfers through food security, stable housing, and security of mental health.

As the results of these small trials are analyzed in the context of large scale policy, the trade-offs are coming into focus.

The Cost Dilema

Funding UBI on a national level was called into question by many. An example would be the $1,000 a month to every American over age 18, which would cost approximately $3.9 trillion a year, more than the total US federal budget. Because the majority of these small scale trials are funded by philanthropic donations, the cost questions are left to large scale trials of UBI, funded by a great deal of public tax money and/or a reallocation of government spending.

Inflation and the Labor Market

Economists disagree about the macroeconomic effects of cash infusions. Larger effects could lead to inflation of goods and services, including housing and food, thereby negating the benefits of Universal Basic Income (UBI). Small pilots on limited populations may fail to estimate those large effects.

Targeting vs. Universality

Critics of UBI claim it leads to inefficient cash distributions to rich individuals, while cash transfers designed to target the poor could lead to a greater overall reduction in poverty. Supporters say that cash transfers designed for everyone reduce stigma, and thereby, build a wider base of political support.

Political Support

The pilots cannot study whether UBI would lose political support when the focus of the budget changes, or if it would survive future budgetary shifts due to changes in political dominance.

In the absence of these studies, momentum grows. The Stanford Basic Income Lab reported that since 2020, over 100 new Basic Income pilot programs were launched in the U.S. (most of them targeting specific populations, rather than cities as a whole).

The lack of large pilot studies emphasizes the newness of this research. "At a pilot level we learn a great deal about personal impacts of UBI, but we know nothing about the societal cost of UBI on a national level," said one researcher.

Tips for Your Very First 10K Race

You must be so thrilled to be embarking on your first 10K race! It’s a lot of mixed emotions for sure. Here is a compilation of everything I wish I had known when registering for my first race.

1. First Race = First Pair of Sneakers? Nope!

As tempting as it is, don’t use this race as an excuse to wear your new shoes. You should be practicing with your new sneakers well before race day.

2. Test Your Breakfast

Do you have a favorite race morning breakfast? You’d better be sure it will be sitting well with you during the race and is not going to end poorly. Don’t find out the hard way.

3. Control That Race Day Excitement!

That rush of adrenaline and excitement at the start of the race? Use it to your advantage and pace yourself for the first mile. You’ll be grateful you did for the rest of the race.

4. Study the Race Course

Be sure to know the race course before you arrive. It is helpful to know where the big challenges (i.e. hills) are going to be.

5. Never. Skip. Training Runs.

You’ll get the most out of your training with consistency. You’ll take training runs much more seriously when you know the importance.

6. Preparation is Key! Hydrate Ahead of Time

You know you need to hydrate, but it is important you don’t underestimate pre-hydrating. You need to start early.

7. Identify a mantra

Keeping a mantra, like “strong and steady” or “almost there,” can help you pass through tough mental blocks, like the one that may happen around mile five.

8. Dress for the forecasted temperature minus 20 degrees

The start of the race will feel cold, but once you start going you will warm up. If you dress for the cold, you'll feel uncomfortable by mile two.

9. Do not self-evaluate in comparison to others

Someone may pass you running as if it is effortless; others may be walking. None of that is of any concern. You are there for you, so run for you.

10. An achievement is crossing the line, not your time

For your first 10k, crossing the line is all that is necessary to be proud of. Do not be disappointed that you earned a medal by training and achieving a great goal by putting a time on it.

Get going and be greatly rewarded, and bring a well deserved treat of pancakes for yourself after.