What Would Happen If We Just Gave People Money?

In Alaska, a highly popular version of Basic Income gives residents between $1000 and $3000 a month. Although this wealth fund, and similar ones in countries like Norway, have been considered, critics argue that it wouldn't work in an American context.

Organizations in Detroit are piloting a program to apply food stamp credits in grocery stores towards the purchase of nutritious produce, in order to increase access to healthy items. The initiative can also help the local economy prosper through increased promotion of locally grown produce.

During the presidency of Andrés Manuel López Obrador, Mexico roughly tripled its minimum wage and instituted universal cash transfers for elderly residents and others in need, which helped reduce the number of people living under the poverty line by nearly 26 percent. But some people are still falling through the cracks and advocates say more could be done to reach the country’s most vulnerable.

An all-digital system delivered monthly payments to millions of Togolese people in need during the coronavirus. The platform, built in two weeks, immediately verifies applicants’ eligibility and instantly sends a text message with electronic funds. The program’s rollout began with monthly stipends to in need around Lomé and has slowly expanded to other groups. Most recently, researchers used algorithms using satellite images to first identify impoverished communities based on their layout and housing materials and then used mobile phone data to identify the poorest individuals within those regions.

Thousands of undocumented immigrants who lost their jobs during the pandemic can now receive aid through New York's Excluded Workers Fund. The $2.1 billion fund is the largest of its kind and the result of 18 months of lobbying, protests, and campaigning by community groups. Approved applicants can qualify for $15,600 or $3,200, depending on their ability to prove New York residence, previous employment, and lost income. Applications and fund information is made available in 13 languages and partnerships with grassroots organizations has been critical to reaching people who are eligible to apply.

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.

Germany's creative workshare approach to stemming unemployment has prevented mass layoffs, unlike rising numbers in the United States. The German government provides payroll subsidies which allow an employer to keep on its staff by cutting back hours for everyone. Unemployment funds that would usually go to those who are laid off are instead directed to employers' payrolls, preventing the inconvenience and uncertainty of layoffs and allowing workers to seamlessly return to work full time when the health crisis is under control.

The Italian government's attempt to assuage the financial fallout of the pandemic on small businesses, freelance workers, and the self-employed did not achieve the desired results despite the enormous size of the aid package: 25 billion euros. Delays, technical glitches, and language barriers for international workers have plagued the application process from the day it was launched and over half a million applications have yet to be processed. Italians also criticized the 600-euro amount which is the average rent in the country, often higher in some areas. The government has announced additional aid.

The Finnish government's experiment with basic income revealed the mental and emotional benefits associated with receiving a small monthly income. The 560-euro amount is not enough to live on but provides a financial security net for those who have experienced long-term unemployment. Basic income allowed participants to consider low-paying jobs that would normally cost them their benefits. The notion of basic income has gained traction across Europe, especially during the pandemic and in the face of general job losses due to automation.

Bartenders and restaurant workers rely heavily on tips and often work off the books, which puts them in a unique disadvantage when trying to collect financial aid during this pandemic. Some have thought of creative ways to stay in touch with regular customers to ask for tips and others have sought relief from Restaurant Opportunities Centers United which has a membership of 30,000 restaurant workers and has provided half a million dollars in funding. The organization has sought to provide immediate help and is also pushing for long-term structural change such as paid sick leave.