Basic Income for Homeless: Study Reveals Surprising Results

A year-long study in California explored whether a monthly basic income of $750 could help 103 homeless individuals secure long-term housing. Researchers found that the cash payments did not substantially alter the rate at which participants obtained housing when compared to a control group. However, the study did reveal how the recipients spent the money. Contrary to concerns about frivolous spending, the vast majority of the funds were used for essential necessities such as food, transportation, and housing-related expenses. Spending on alcohol, cigarettes, and illegal drugs accounted for only 5% of the expenditures.

While the direct impact on housing rates was minimal, the financial assistance appeared to provide other forms of stability. The participants utilized the funds to meet immediate personal needs, maintain transportation for work, and alleviate financial stress. This suggests that while direct cash infusions may not be a primary solution for homelessness due to high rental costs, they can still positively influence other aspects of an individual's life. The study highlights that to effectively counter homelessness with basic income, the payment amounts would likely need to be significantly higher or sustained over a longer duration, potentially covering a larger portion of local rent costs.