The US city giving away free money

A pilot program in Hamilton, Ontario tests the viability of a universal basic income. While bureaucratic red tape and critics from both political sides limit the enrollment in the program, citizens partaking in the pilot note that support in the form of cash keep them healthy and able to avoid living in poverty.

Studies show that universal basic income programs, which provide monthly payments for participants to use how they see fit, can help reduce food insecurity and improve employment and mental health conditions for those receiving payments. For three recipients of guaranteed income in the Bay Area, the payments helped cover expenses like community college tuition, higher-quality basics and necessities, and paying off past-due bills, but the limited term of the programs made it difficult to truly make a dent in systemic financial challenges.

Rent relief payments in California are helping public housing residents pursue full-time employment. The Jobs-Plus initiative provides payments that are conditional on enrolling in job training and placement programs. An increased income often disqualifies public housing residents from benefits and subsidies such as food stamps, childcare, and discounted rent rates which can negate the increased income from higher wages or more hours. Rent relief empowers residents to build a security net for themselves in addition to pursing full-time employment without the strain of losing much-needed benefits.

A nonprofit in Berlin tests the success of the Universal Basic Income structure, which is founded on the idea that a monthly stipend awarded to all individuals can create an invigorated labor force and allow people to do what they love. The organization called Mein Grundeinkommen (My Basic Income), has found that recipients of the monthly cash stipend have become less anxious and more curious and willing to reimagine their dream job.

Pennsylvania’s WIC program, offering people experiencing economic hardship food stipends, is switching from paper checks to plastic cards. The seemingly small change will have a huge effect on how the benefits are used, allowing participants to be more flexible in where and how they spend the money. Such flexibility means more of an opportunity to buy healthier food and to use the entire stipend across a month, rather than having to spend it all in one place at one time.

A pilot program in Jackson, Mississippi called Springboard to Opportunities is providing 20 single, African-American mothers living in public housing with $1000 a month, with no stipulations on how that money should be spent. The experiment so far has allowed mothers to save money, avoid predatory loans, pay off loans, and consider classes and higher education.

Smartphone technology levels the playing field for low-income people, utilizing services that manage SNAP food-assistance budgets, pay parking tickets on time, payday loans, and more. Applications like Fresh EBT work with families to create budgets to better manage their monthly income.

The “Save the Daughter” campaign is helping families in Nepal with the economic struggle they face when mother’s give birth to females. That’s because, families with girls have to pay the wedding dowry, a cumbersome expense for low income families. The government is giving funds to families that have a second daughter to go towards their education. So far, 40 women have received funds. “This will create an environment for families to happily accept two daughters,” Karki says

Between 2005 and 2015, Peru cut its poverty rate in half. Though there is still more work to be done, Peru can attribute its success to several reasons. The combination of inclusive economic growth and targeted, high-impact social programs showed clear results. By giving monthly cash stipends to female heads of household and helping youth as well as the elderly, Peru has seen a sizable decrease in economic inequality.

For many people experiencing poverty, the struggle to make ends meet and provide for their children is common across generations. In Philadelphia, non-profit programs are recognizing that aspect of poverty and helping to ensure that the next generation is better equipped to be economically secure - not by solely focusing on the children, but by addressing the underlying issue and focusing on parents and grandparents as well. So far, the initiatives are helping families reconnect and create a better future.