Austin experimented with giving people $1,000 a month. They spent the no-strings-attached cash mostly on housing, a study found.
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A guaranteed-basic-income plan in Austin that gave low-income residents $1,000 a month appeared to reduce housing insecurity.
  • A guaranteed-basic-income program in Austin gave people $1,000 a month for a year.
  • Most of the participants spent the no-strings-attached cash on housing, a study found.
  • Participants who said they could afford a balanced meal also increased by 17%.

A guaranteed-basic-income plan in one of Texas’ largest cities reduced rates of housing insecurity. But some Texas lawmakers are not happy.

Austin was the first city in Texas to launch a tax-payer-funded guaranteed-income program when the Austin Guaranteed Income Pilot kicked off in May 2022. The program served 135 low-income families, each receiving $1,000 monthly. Funding for 85 families came from the City of Austin, while philanthropic donations funded the other 50.

The program was billed as a means to boost people out of poverty and help them afford housing. “We know that if we trust people to make the right decisions for themselves and their families, it leads to better outcomes,” the city says on its website. “It leads to better jobs, increased savings, food security, housing security.”

While the program ended in August 2023, a new study from the Urban Institute, a Washington, DC, think tank, found that the city’s program did, in fact, help its participants pay for housing and food. On average, program participants reported spending more than half of the cash they received on housing, the report said.

  • EldritchFeminity
    6·
    10 months ago

    For an anecdotal example, when I was in my 20s I worked with an old lady at a fish market who had to strictly regulate the number of hours she worked in a year because she couldn’t afford to make above a certain amount of money. If she went into the next higher tax bracket, she would’ve been kicked off her social security, and regardless of how many hours she worked, wouldn’t be able to make up for the lost money.

    Another interesting benefit I’ve heard of from a similar study that gave everybody above a certain age in a town $1,000 a month, but was focused on the impact to the labor pool, was that almost everybody continued to work except for in two categories: pregnant women and high-school students. This coincided with an increase in the average grades of high-school students, the number of kids who graduated, and the number of kids who continued on to college. The theory was that the kids who would normally have to work to help put food on the table were instead able to focus on their studies.