Dear MEL Topic Readers,
A German experiment gave people a basic monthly income. The effect on their work ethic was surprising
Universal basic income (UBI) is the concept of a government program in which every adult citizen receives a set amount of money regularly, regardless of their income level. It aims to alleviate poverty while replacing other need-based social programs. Proponents of universal basic income say it provides a basic safety net, reduces poverty, improves mental and physical health, and increases job security and negotiation power. However, critics are concerned about the cost and funding, work disincentives, and price hikes. A recent three-year study of 122 Germans who received €1,200 ($1,365) per month unconditionally found that it did not disincentivize the recipients to quit their jobs. Rather, the increase of their monthly income seems to have given them the economic security to change to more desirable jobs or take further education while experiencing greater satisfaction in their working, private, and social lives. Since the program was limited to only three years, many participants might have been inclined to invest or spend the money for their future. More than two million people applied to participate in the study to receive free money. What would you do if you started receiving your pension in your 30s?
Read the article and learn what effects universal basic income might have.
https://edition.cnn.com/2025/04/11/health/germany-universal-basic-income-study-intl-scli-wellness/index.html
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