 In a few months New York City will choose its next mayor, and according to polls, it just might be Andrew Yang. You may remember Yang from his 2020 Presidential campaign; he talked up basic income, or the idea that Americans should receive a monthly check from the government, no strings attached. In his mayoral campaign, Yang's proposal is more modest. He will target New York's 500,000 poorest residents, giving them $2,000 per year, regardless of immigration status, in an effort to alleviate homelessness and poverty. His plan would make New York the largest city to implement a basic income program.
Results from a smaller experiment in California suggest it could work. In 2019, the city of Stockton tested basic income to see how it might improve low-income residents' well being. For two years,125 people received $500 a month on a prepaid debit card so researchers could see how it was spent. According to analysis of the program released last month, more than 60% of the money was spent on groceries or other essential household items. The next most common purchases were utilities, auto repairs, "transportation costs" such as bus passes, insurance payments, and medical costs. Less than four percent of the money (so $20 at most) went towards what researchers called "self-care" or fun items. One recipient, for example, said they could finally afford to buy their child a birthday cake. In interviews, people reported a level economic security they'd never felt before. Many of them were hourly or shift workers, subject to wildly fluctuating paychecks that made it difficult for them to create a monthly budget. A control group that didn't receive any money had incomes that fluctuated by nearly 68% from month to month. Basic income recipients, meanwhile, reported just a 45% fluctuation. Because they knew they'd have at least $500 no matter what, they started taking care of long-postponed problems. Some people went to the dentist. Others made home repairs they'd previously been unable to afford. One woman told researchers she could finally afford pads and tampons again. Basic income also changed people's employment prospects. When the program started in 2019, only 28% of recipients were employed full-time. A year later, 40% of them were. They'd been able to scale back their part-time or gig work in order to apply for better, more permanent positions. One man got a real estate license. Another quit his hourly job to take an internship that he hoped would lead to full-time, salaried employment. There is one undeniable downside to basic income: It's expensive. Yang's targeted plan would offer a payment a third the size of Stockton's, cover only the poorest 5% of New Yorkers, and still cost $1 billion a year. That's a steep price tag for a city reeling from high unemployment and facing billions in lost tax revenue because of the pandemic. "We always want a very simple solution to complex problems," says Stacia West, co-founder and director of the Center for Guaranteed Income Research at the University of Pennsylvania, who was part of Stockton's research team. "But it's actually a very difficult thing to implement." If only there were people out there who'd be willing and able to help. Maybe the 113 billionaires who live in New York have an idea.—Claire Suddath | 
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